Five steps to get ahead of the procurement fraud curve

| 0 Comments
RudiKruger.jpgCorrupt staff members or officials keep companies under the water gasping for air with devastating effects. Companies drown under the weight of policies and procedures that are ignored and sometimes not fully understood to implement successfully.


“Reduce the likelihood of irresponsible decisions,” says Rudi Kruger, General Manager of LexisNexis Risk Management.


Kruger provides five quick steps to perform before you award the contract:


1. Are they who they say they are?
Implement systems that perform basic background checks quickly and efficiently.  Procurement application forms are seldom less than 17 pages and Procurement professionals do not have the time to wade through all these documents.
 

Add the fact that manual checks take hours of valuable time and the benefit of looking for online systems that can perform a lot of these basic checks for you quickly, and if possible in one go, become clear.

  • Is this a legitimist business?
  • How long have they been in business?
  • Is this their core function?
  • In who’s names(s) is this business register?
  • Do they have a valid Vat number?
  • Do they have a tax clearance certificate?
  • Is this the same bad boys with a new name?

2. Price
Do you know what you are paying for? Was the price negotiated and by whom? Is the price you are paying for these items in line with general costs of such an item or service in the market? Are these recurring costs and what are the terms and conditions?
 

3. Contract
Is there a formal contract in place for this service or good? Are you able to meet the conditions of their contracts and can they meet yours?
 

4. In the news / court
Do you have access to a news source where you can quickly see all the news about this company. Is there some negative publicity that will warn you about their behavior? Are they constantly in court for not honouring contracts?
 

5. Have an interview
Is it possible to have an interview with your supplier? A quick conversation with your supplier will quickly identify if this person can do the job or deliver the service.
 

There are a number of online vetting products in the market providing background screening solutions for both vendors and employees.   LexisNexis Risk Management offers RefCheck Advanced for employee screening; ProcureCheck for assisting with procurement vetting of vendors and employees; and LexisDiligence for all global due diligence and legislative compliance.
 

LexisNexis has assisted various Government and Corporate entities with the necessary tools and processes to assist them staying ahead of the curve.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Demand Planning Manager

  • <500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k - R900K) excluding ...More

Global Category Manager: CONTRACTS

  • <500 000 Buyer Commodities Contract Gauteng
Total Cost to Company R1mil - R1.2mil excluding

Project Manager :12-18 MONTH CONTRACT

  • <500 000 Contract Procurement Officer / Specialist Projects / Category Management
Description:A well-known retail organization is looking for an ...More

Procurement Analyst

  • <500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
Description:Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R800K - R900K) Description: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
(Total Cost to Company R350K - R550K) SOUTHERN ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
(Total Cost to Company R450k - R550k, dependent ...More

Procurement Specialis

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k - R800k including ...More

Solutions Architect

  • <500 000 Analyst Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R1.3Mil - R1.1Mil including ...More

Engineering Manager

  • Gauteng Industrial Engineer Permanent Procurement Management
Total Cost to Company R850k - R950K including ...More

Country Head of Procurement

  • Permanent Procurement Management Procurement Officer / Specialist
https://careers.peopleclick.com/careerscp/client_gsk/external1931/gateway.dofunctionName=viewFromLink&jobPostId=359235&localeCode=en-us CBS Procurement,Hub Head of Procurement To lead, ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Planning/Demand%20Planner/TP2005490/MSe Category: PlanningPosition Title: Demand PlannerSalary: R600 000 ...More

Head of Procurement

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Procurement/Head%20of%20Procurement/TP2005488/ZBuCategory: ProcurementPosition Title: Head of ProcurementSalary: R1.3 million ...More

Warehouse and Distribution Manager

  • <500 000 Gauteng Logistics & Warehousing Permanent Supply Chain
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Logistics/Warehouse%20Distribution%20Manager/TP2005455/TMa Category: Supply ChainPosition Title: Warehouse and Distribution ...More

Supply Chain Manager

  • <500 000 Mpumalanga Permanent Procurement Officer / Specialist Supply Chain
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Mpumalanga/Supply%20Chain/Supply%20Chain%20Manager/TP2005448/LMa Category: Supply ChainPosition Title: Supply Chain Manager ...More

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Operations, Planning & Inventory Permanent
https://www.tech-pro.co.za/pages/jobdetail.aspx#!Gauteng/Consulting/Continuous%20Improvement%20Manager/TP2005489/SNh Category: ConsultingPosition Title: Industrial EngineerSalary: R900 000 ...More

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More