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 offences.

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.