The scale of SA's procurement fraud

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ColinCram.jpg“Fraud prevention systems don’t work because people are the ones that commit fraud and not systems.”


Smart Procurement World recently sat down with international innovation, procurement and sustainability expert Colin Cram.
 

Colin is best known for his passion around the topic of combating global procurement fraud. He has held senior procurement positions for over 30 years, including central government, higher education, scientific research and local government. Throughout his career Colin has been responsible for initiating and implementing innovative strategies for procurement, shared services, outsourcing and organisational re-engineering.


Looking to South Africa, Colin notes that our economy and organisations are beginning to recognise the risks around procurement fraud and the threat this poses for all organisations that carry out any form of procurement activity, which is, in fact, virtually every organisation throughout South Africa and globally.


"The current scale of procurement fraud in South Africa is estimated at R50-billion," says Colin. This affects not only the country’s economic growth and reputation, but also creates serious delays in economic and social development. Key industries identified by Colin as the most susceptible to procurement fraud are:
• Defence
• Construction
• Oil and gas
• Transport
• Infrastructure


Ironically, these are currently the leading sectors contributing to the economic development of South Africa - understanding the inner workings and then proactively addressing the challenges faced by organisations in these economic segments has now become an imperative.


Colin Cram will address this, with his vast amount of expertise, at the 5th Annual Public Sector Supply Chain Summit on 10 September 2013. Join us as he delves deeper into the issues around Combating procurement fraud - preventing fraud and opportunities for fraud in procurement.


Tweet us @SmartProcure for any question you would like to ask Colin at the conference.


We look forward to seeing you there!
Smart Procurement World Team

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