In Summary

Despite technological advances, there has been emerging issues affecting procurement such unethical conduct and fraud Tom Brian Angurini explores.

It is criminal for a supplier to offer an inducement in form of money or a gift to a member of a tender panel.
And equally it is an offence for such a member to accept a gift or consideration offered by a bidder.
Therefore, as a participant in the tendering process either as a member of the panel or a bidder, you must let loose of all personal interests that may appear conflicting.

You must always keep away from any temptation and must not jealously guard any details of the contract.
According to Greg Petzer, the Speke Resort Munyonyo general manager, a fraudulent procurement process, takes the opportunity of giving a contract to deserving or competent companies, which might result into sub-standard works.
“Fraudulent procurement leads to waste of opportunities and thus could result into poor works because the people who get the job might not have the capacity to do it according to specifications,” he says.

Scovia Amatio, a procurement officer based in Natete, says procurement fraud means the unbeaten custom of dishonesty or any pretense with intention of cheating or injuring another person or an establishment.
She says procurement fraud includes, but not limited to, cost discharging, defective pricing, defective parts, price fixing and bid rigging as well as product substation.

Labour discharging, she says, is a scheme by contractors to fraudulently inflate the cost of labor or materials while defective pricing occurs when a contractor does not submit or disclose to the contracting agency the cost or pricing of the contract.

This include a complete picture of the current prior details that lead to awarding of the contract.
“Fraud indicators are best described as clues or hints that a closer look should be made when detecting fraud. They are acts or activities that raise concern in procurement fraud detection,” she says.
Ms Amatio, says fraud indicators may or may not be significant, depending on what it is, what other indicators are present and the context of organisation’s transactions.

Offering inducements, if proved, will lead to cancellation of the contract and the culprit, individual or company, might be banned from participating in any bidding process for a period of five or more years.