Fraud is usually described as someone obtaining something by deceit. There is no precise legal definition of fraud in the procurement context, rather a collection of activities that have been identified by the government as falling within the context of fraud - theft, false accounting, bribery, corruption, deception and collusion.
Within procurement there is an ongoing risk of fraud throughout the procurement process, from the initial identification of need to the receipt of the goods or services and eventual payment. These risks include:
Manipulating tenders/collusive tendering (including cartels)
Drafting specifications in favour of one supplier
Product substitution or sub-standard work or service not meeting contract specifications
Theft of new assets before delivery to end user and before being recorded in the asset register
Fraudulent (false or duplicate) invoicing for goods and services not supplied or for interim payments in advance of entitlement
Improper or unauthorised use of institution-provided equipment or information
False accounting and cost misallocation or cost migration between contracts
Goods ordered for personal use, including misuse of the institution’s procurement cards/credit cards and e-procurement facilities
Provision of fraudulent test and quality assurance certificates
Corruption or attempted corruption of institution staff
Adherence to your institution’s procurement policies and procedures will help ensure that accusations of fraudulent activity will not be made against staff involved in purchasing activity. Should you have concerns regarding potentially fraudulent activity within your institution, you should speak to your line manager, your Head of Procurement or Finance Service or seek guidance from the Human Resources Department.
School / MAT members - the information on this page aligns with the following ISBL Professional Standards: 2.21, 2.22, 2.23, 2.24, 3.12