Course Description

Most serious fraud and corruption cases begin with a report or tip from an informant, and once detected, many such frauds can’t be proven, at least within a reasonable time and budget, without an inside witness. Programs to facilitate and encourage reports are therefore quite important. The course combines both legal and operational information with their practical application within the purchasing and contracting environment. Understanding will be tested through case studies.

Course Goal

To enhance the participant’s knowledge, skills and abilities necessary to detect and discover fraud in purchasing and contracts.

Course Objectives

By the end of this course, the participants will be able to:

1. Understand the nature of a contract
2. Determine the object of a contract
3. Understand the manner of creating contracts
4. Interpret of contracts
5. Determine unlawful contracts
6. Understand the basics of corruption and fraud
7. Prepare contract and purchasing fraud schemes and red flag

Course Outline:

• Nature of a Contract

1. Definition
2. Parties
3. Consent

• Object of a Contract
• Manner Of Creating Contracts
• Interpretation Of Contracts
• Unlawful Contracts
• Extinction Of Contracts
• Corruption and Fraud – The Basics
• Supplier Fraud

1. What to look for
2. Tracking tendering history

• Managing for security

1. Internal Systems
2. Organizational Controls
3. External Audit Controls
4. Legal Controls
5. Personnel management

• Contracting for security

1. Using terms and conditions
2. Having appropriate checks and balances in the approval processes
3. Using external third parties
4. Randomized checking procedures

• Dealing with fraud

1. Why so few use the legal option
2. How to manage personnel
3. What about fraudulent supplier?
4. Remedies Available

• Contract and Purchasing Fraud Schemes and Red Flags

1. Collusive Din by Contractors
2. Change Order Abuse
3. Co-Mingling of Contracts
4. Conflict of Interest
5. Cost Mischarging
6. Defective Pricing
7. Excluding Qualified Bidders
8. Failure to Meet Contract Specifications
9. False, Inflated or Duplicate Invoices
10. False Statements and Claims
11. False Statements and Claims
12. Leaking of Bid Information
13. Manipulation of Bids
14. Phantom Vendor
15. Product Substitution
16. Purchases for Personal Use Or Resale
17. Rigged Specifications
18. Split Purchases
19. Unbalanced Bidding
20. Unjustified Sole Source Awards
21. Unnecessary Purchases

Who Can Benefit?

Procurement, internal auditors and technical staff that have a role in specifying and procuring services and supplies