This article brought to you with: Finale Inventory.

See how Finale Inventory helps you improve and scale your operations with their all-in-one, multi-channel inventory management solution.


Is the Procurement Industry Destined for Corruption?

Is the Procurement Industry Destined for Corruption?
Image via Flickr by Janet 59

“Vast amounts of money, combined with a secretive purchasing process, can be a formula for corruption.” Zachary Mehan, a communications assistant at the Transparency International Defence and Security Programme, made this statement in reference to government defence procurement, but it can easily refer to all sectors of the procurement industry.

This article is for Premium Members only. Please login below to read the rest of this article.

Not a Premium Member yet? Become one today.

[login_form redirect=’https://www.procurementbulletin.com/is-the-procurement-industry-destined-for-corruption’]

[show_to accesslevel=’Premium Members’]

The Many Faces of Procurement Corruption

Cases of procurement fraud are far from rare. From bid tampering to misuse of funds, alleged instances exist in both the public and private sectors and the range of wrongdoings is tremendously broad. In Miami, officers arrested a procurement official for leaking bid information on a city project.

Jessica Harper, former head of fraud and security at Lloyd’s Bank, received a 5-year sentence for falsifying invoices and claiming the payments. Supplier influence and offset payments in defence procurement leads to unnecessary military spending around the world. Corruption comes in many forms.

Can Procurement Fraud Be Stopped?

“Corruption in the defence and security sector is dangerous, divisive, and wasteful. It cannot only be changed by strong leaders in the government and military, but by a public that is aware and willing to stand up against corruption,” says Mehan. Again, this is true in any sector of the procurement industry. Transparency and accountability are the keys to prevention.

In most countries, public procurement transparency standards are in place, allowing the government as well as the stakeholders to monitor the activity. In the private sector, corporate policies should include transparency and accountability standards. Ideally, supply chain management will integrate into the daily operations of the company to improve accountability and transparency. Some companies choose to outsource procurement to guarantee compliance.

In recent years, procurement corruption has been on the rise. Transparency and accountability standards will lower instances of fraud and will make it easier to spot corruption, but in a world of temptation, corruption can never be completely eliminated.


Global Procurement & Supply Chain Professionals Read This…

Free Case Study When You Subscribe

…Carefully curated procurement & supply chain issues that make you look smart, sent to your inbox every week.

PLUS: Get the FREE Procurement Case Study when you subscribe: “How McDonald’s Overcame Global Supply Chain Obstacles”

Procurement Bulletin eNL Subs Email Only Step 1

Similar Posts