Upcoming Events :
Housing Seminar: Partnerships with the Public Sector – Avoiding the pitfalls
Thu 31 May 2012
Minerva House, 5 Montague Close, London, SE1 9BB
Procurement departments face fraud challenge
Fri 20 Jan 2012
Public sector procurement departments around the world are finding supplier fraud an ongoing issue, a new report has revealed.
According to PricewaterhouseCoopers (PwC), the crime now accounts for nearly one-third of all public sector fraud that is carried out by a third party.
This, it said, is significantly up on the amount recorded in 2009.
Ian Elliott, a partner at PwC, said the trend has come about due to the public service market becoming "more open in many countries" over the last few years.
He noted that supplier fraud has also increased because a more diverse range of suppliers are getting involved in procurement.
Mr Elliott said these changes are opening up a "whole raft of new challenges" for procurement departments, as they need to make sure they do not affect the cost-effectiveness and quality of the services they deliver.
Jon Baldwin, a solicitor at Winckworth Sherwood, commented: "Fraud against the public sector comes in many shapes and sizes, but there are simple steps that organisations can take to reduce their risk.
"In particular, organisations can put in place strict change control procedures with their contractual partners, to prevent them falling victim to fraudulent requests to change supplier details or invoicing terms.
"Because fraud is sadly often made possible through the corrupt actions of one or more employees, it is also vital for all organisations to ensure that they have in place adequate procedures to protect against staff committing or falling victim to bribery."
This comes after changes to the European Union's public procurement system, which have been designed to make it simpler and more flexible, were unveiled.
