Fraudulent activities within the supply chain are a common risk encountered by private and public sector organisations.
While it can be difficult to identify culprits within your own organisation and those within supplier organisations, there are steps that can be taken to thwart opportunities and therefore decrease the likelihood of fraudulent incidents over time.
Rudi Kruger, GM of LexisNexis Data Services, says an environment of transparency and accountability in the workplace will go a long way toward curbing procurement fraud and any inappropriate employee conduct.
“A transparent working environment limits the opportunity for bribery, conflict of interest and other illegal transactions to take place behind the scenes. Transparency is created by first employing a procurement strategy that clearly defines procedures and protocols for purchasing, has roles allocated and ensures that every involved employee is accountable for every transaction,” says Kruger.
In addition to insisting on transparency, the act of vetting employees as well as suppliers must be conducted regularly so that any red flags can be picked up early. Common red flags to look out for during the vetting process include deviations in communications between procurement staff and suppliers, personal links between employees and vendors and signs of bribery.
Technology is a great ally in the fight against employee and supplier fraud because it has the ability to provide important information at a rapidly. In procurement, the comprehensive information from solutions like Lexis ProcureCheck, gives procurement officers easy access to all the background information needed on suppliers and internal employees.
Lexis(r) ProcureCheck is the first of its kind, easy to use web based system designed to help you identify and prevent fraud schemes within procurement processes. The solution is built on a new technology platform allowing flexibility and stability. It provides automated irregularity alert reports as well as reports on vendors and staff.
With ProcureCheck, you can create your own vendor list. It can also help you highlight external business interests of employees within your organisation. It has strong financial backing and is managed by a highly experienced team.
“Lexis ProcureCheck is designed to help businesses combat corruption by identifying potential connections. It helps you identify possible fraudulent activity within vendors and employees with the help of South African Fraud Prevention Services,” Kruger said.