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Articles in category: Procurement Ethics
The number of countries deemed to be an “extreme risk” for human rights abuses has increased by 70 per cent since 2008. According to Maplecroft’s Human Rights Risk Atlas, the number of countries in the category has risen from 20 to 34.
Countries that have seen the worst deterioration in their human rights since 2008 include war-torn Syria, which is ranked at number one out of 197 nations, Egypt, Libya, Mali and Guinea-Bissau.
The key emerging economies of Nigeria, India, the Philippines and Indonesia have also dropped into the worst category. MENA and other African countries account for the ...(Read Full Article)
Perceived levels of corruption in South Africa remain high, according to the 2013 Corruption Perception Index (CPI), released on Tuesday. Published by the global organisation Transparency International (TI), it ranks South Africa 72nd out of 177 countries, with a score of 42. The CPI measures perceived levels of public sector corruption, ranking countries on a scale from nought to 100, where zero is highly corrupt and 100 is very clean. Last year, South Africa scored 43.(Read Full Article)
Corruption and bribery is costing developing countries up to $40 billion (£24.5 billion) each year and is the “thief of economic and social development”.
The United Nations Office on Drugs and Crime (UNODC) believes corruption is the “single greatest obstacle” to development globally and firms must take a “zero tolerance attitude”. UNODC said: “Companies need to take a zero tolerance attitude towards corruption and put policies in place covering issues such as gifts, supply chains and whistleblowers.”
Yury Fedotov, executive director of the UNODC, told a conference of the UN Convention against Corruption in Panama City a “robust and ...(Read Full Article)
Britain has suspended direct aid to Malawi over a multi-million pound corruption scandal which has seen ministers close to President Joyce Banda implicated in fraud and the attempted murder of a whistleblower(Read Full Article)
The Association of Chartered Certified Accountants (ACCA) has revealed that accountants in sub-Saharan Africa believe bribery and corruption has negative impact on business, especially on the Small and Medium Enterprises (SMEs).(Read Full Article)
The National Assembly and county assemblies have formed a new organisation to fight corruption. The organisation, Accountability Kenya was formed during a of MPs and MCAs in Naivasha on Friday to address the issue of corruption, accountability and impunity in the counties.(Read Full Article)
The key to success is sincerity. If you can fake that, you’ve got it made. So, reportedly, said Jean Giraudoux, the late French diplomat, dramatist, and novelist. Apparently, many people have taken the advice to heart, and some of them have been causing headaches for businesses in general and procurement in particular.
A recent study released by international risk consultancy Kroll found that following a decrease in 2012, fraud today is on the rise. Among other findings, the report concludes that “vendor, supplier, or procurement fraud and management of conflict of interest" saw the biggest growth in fraud. Moreover ...
Explore BDlive (Nov 12 2013) Preferential Procurement , Procurement Ethics , Supplier Diversity , Supplier Relationship Management , Manufacturing & Automotive , Public Sector , Transport & Logistics , Talent Management
Department’s "hard targets" for state-owned companies seen as alternative to mandatory "set asides" wanted by Black Business Council(Read Full Article)
The Security Cluster briefing this morning on the reasons why they sought legal action to prevent the release of the Public Protector's Report on the Nkandlagate scandal was a poor attempt at damage control. It is also clearly in contradiction with their affidavit, as submitted to the High Court.(Read Full Article)
So what are the ‘global themes’ of procurement fraud?
- No clear definition of procurement
The reason a central definition is so important is because it identifies the different areas of the procurement cycle that may be exposed to the risk of collusion or manipulation. The first stage is ‘identification of needs’, for example is there a requirement for this product or service in the first place?
- Lack of board importance
Procurement fraud is not on the boardroom agenda and there is often no anti-fraud strategy in procurement initiated across the organisation.(Read Full Article)
Despite the legislation and the aggressive talk, procurement fraud remains a reality, and one which has a damaging effect on the function."Procurement Officer Charged in Bid-Bribery scheme". As a procurement professional, every time you see a headline like this your heart sinks a little bit.
It’s not hard to find examples of high-flying procurement teams that have the spotlight thrown on them by bribery allegations. Just last week, a story on Bloomberg explained the situation with a former procurement officer at aircraft group Boeing who was charged with bribery, suspected of leaking non-public information to a bidder of ...
What are we to make of all the movement at the top echelons of the corporate and government sector in recent times? Whatever else, it represents a dramatic break with that long-held tradition that when senior people left an organisation, under suspiciously controversial circumstances, there was no public discussion.
.A pithy formal announcement was made to the effect that senior executive Joe Bloggs woke up one morning and realised he should spend the rest of his working life smelling the roses with his wife and children. Or, we’re told, Joe decided he wanted to pursue personal interests.(Read Full Article)
It’s astonishing! At a time when we have Sarbanes Oxley and a culture of control, in the climate of transparency and scrutiny and a fetishistic focus on finance – how is it that fraudsters have been able to get away with a more than 50% increase in procurement related theft?
But it’s not that astonishing really. A cursory glance at the procurement practices and purchase to pay processes in any organization will reveal opportunities to defraud and while we should never forget that it is the fraudster that’s to blame, the responsibility is shared with the executives who ...(Read Full Article)
When the Tanzania Public Procurement Act, 2004, came into force in 2005, public expectations were high that the new legislation would work well against escalating theft and embezzlement of public funds through procurement of goods and services.(Read Full Article)
Fast-growing firms in emerging countries such as China and India are not sufficiently transparent about their anti-corruption efforts. According to a report from anti-corruption group Transparency International (TI), Chinese firms to have the weakest overall performance among the BRICS (Brazil, Russia, India, China and South Africa) nations. Transparency in Corporate Reporting: Assessing Emerging Market Multinationals analysed 100 of the fastest growing companies based in 16 emerging markets.(Read Full Article)
The number of British businesses looking to expand into Africa is on the rise. We know that enterprise on the continent is growing - the IMF forecasts that African countries could take up to seven of the top ten places for economic growth over the next five years - and this means the door is open for ambitious entrepreneurs brave (and smart) enough to take the plunge into the unique opportunities the continent affords.(Read Full Article)
Although there has been progress on policy and the development of support infrastructure for SMMEs, more still needs to be done, says Trade and Industry Deputy Minister Elizabeth Thabethe.
There are widespread feelings that the fight against corruption in Zambia does not seem to be fully taken up by everyone in the country.(Read Full Article)
Financial chaos continues to haunt the public works department and the entity responsible for managing its property portfolio. According to the department's 2012/13 annual report, tabled in Parliament, Auditor General (AG) Terence Nombembe again struggled to find proof of much of the department's expenditure, which runs into billions of rand. Nombembe found the department did not always follow the law when it procured goods and services and in managing its contracts.
Mombasa residents have been urged to take part in the procurement of county assets to deter corruption(Read Full Article)
The Democratic Republic of Congo and Somalia have been ranked the most corrupt countries in the world. The Maplecroft Corruption Risk Index places both African states as joint number one, followed by Burma in south east Asia and Sudan equal third. African countries make up six of the top 10 most corrupt countries, though several African nations are also among the most improved. Mozambique has seen the most improvement of the 197 countries in the index.......(Read Full Article)
The naughty vendor checklist provided some good debate, particularly around how much buyers themselves are to blame for the poor behaviour of their suppliers. Not every buyer will seek to abuse the relationship with vendors to maximise performance, but there are some whose business practices could be described as “flexible”. The following is a list of 10 real examples (the belief buyers or vendors don’t engage in this type of behaviour is naïve) of poor practice by purchasers.
- Delay the payment of invoice in breach of contractual obligations
- Exaggerate demand volumes to engineer lower unit prices
- Obfuscation of ...
When a company is subjected to BEE pressures that are out of the ordinary, what's it to do? Carol Paton re-examines the way that Gold Fields handled its South Deep predicament. In the murky world of black economic empowerment, the Gold Fields transaction over its South Deep mine stands out for its contradictory distinctions. It is one of the sector's most broadly based and yet one the most contentious.
Although finalised over two years ago, late last year it became an object of public controversy. There were media allegations, replete with innuendos dutifully aired on Carte Blanche, into ...(Read Full Article)
The Construction Industry Development Board (CIDB) is in the process of appointing an investigative team to “kick start” an investigation into 15 construction companies that in June admitted to collusive tendering on several government contracts. The industry body on Tuesday appeared before the Parliamentary Portfolio Committee (PPC) on Public Works in Cape Town to outline the process prescribed by its regulatory framework to address collusion in the industry.(Read Full Article)