Indicators of Potential Tendering Fraudster

Indicators Of Potential Tendering Fraudster

Economic Stress

– Family illness
– Divorce
– Family unemployment
– High Debt
– Financial losses
– Pressure of the world

Life Style

– Living beyond means
– Possible alcohol or drug problems
– Gambling

Work Habit

– Excessive overtime
– No vacations
– Excessive sick or vacation leave taken
– Avoids or is too friendly to employees
– Secretiveness or defensiveness
– Turning down promotions or transfers
– Avoidance by other employees
– Officer’s pressure to show good results
– Job cutbacks or down sizing

Attitude

– Job dissatisfaction/unhappy employees
– Feeling underpaid
– Unappreciated
– Greed

Opportunities Behavior

– Close association Suppliers/customers
– Loose oversight to authorizations
– Lack of controls
– Independent review
– Too much trust / independence

Interesting Traits

Men commit nearly three-quarters of the offenses.

Median losses caused men are nearly four times those caused by women.

Losses caused by managers are four time those caused by employees.

Median losses caused by executives are 16 time those of their employees.

(Extracts from research by association of certified fraud Examiners, U.K)

Summary

A major reason why people commit procurement fraud is because they are allowed to do so. There area wide range of threats facing government agencies the threat of fraud can come from inside or outside the department, but the likelihood that a fraud will be committed will be greatly decreased if the potential fraudster believes that the rewards will be modest, that they will be detected or that the potential punishment will be unacceptably high. The main way of achieving this must to be establish a comprehensive system of control which increases the likelihood of detection and increase the cost to the fraudster.

It has been said that there are three requirements which need to be met to reduce the risk of procurement fraud; Good Ethics, Good People, Good System.