Combating Procurement Fraud and Corruption

3 Day Training

Dates: 11 – 13 December 2024 | 04 – 06 March | 10 – 12 June 2025
Locations: Grayston Ridge Office Park, Sandton
Platform: Available In-Class / Online

Price: Available on request

Course Introduction

Virtually every entity suffers from procurement fraud, though management might not know it. With procurement fraud costing entities an estimated 5-12 percent of their annual revenues, organizations lacking proactive fraud prevention measures are the most at risk. This 3-day, instructor-led course will show you why traditional internal controls can be ineffective in preventing many frauds and how to combat fraud more effectively and economically. Discover what you can do to protect your company from fraud. Learn about management’s responsibilities for preventing fraud and effective internal controls to aid in this effort.

This Prospen Africa Combating Procurement Fraud and Corruption course will take you further into leading techniques to manage the risk of fraud and cut its ongoing cost for all types of entities. This course looks at ways to combat fraud and corruption in procurement and minimise those organisational systems, processes, procedures, documentation, and contracting processes that can be a barrier to value for money and competitiveness. The course further looks at how to reform procurement within the public, private sector and 3rd sector and how to create a world class and a high-performance procurement organisation.

Course Objectives

Define the legal aspects of procurement fraud.
Recognize the differences between fraud deterrence and fraud detection.
Identify reasons why traditional internal controls often fail to deter fraud.
How to improve implementation of conflict of interest
How to effectively create an anti-fraud culture
How to effectively identify a fraud perpetrator
Implement the seven factors for establishing an anti-fraud program.
How to effectively identify fraud red flags
Find the gaps in your fraud prevention process.
How to improve a whistle blowing system
Outline the elements typically found in an anti-fraud policy.
How to improve procurement performance in your organisation

Who should attend?

Procurement Managers

Internal and External Auditors
Chief Financial Officers
Financial Managers
Procurement Administrators
Bid committee members
SCM Managers
SCM Practitioners

Training Methodology

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.
– Course Material: Access well-crafted supporting resources.
– Group Work: Collaborate on discussions and case studies for practical insights.
– Workshops & Role-Play: Participate in immersive, scenario-based activities.
– Practical Application: Focus on applying theoretical knowledge in real situations.
– Post-Training Support: Receive extensive support after training for skill implementation.

Training Outline

Module 1

Understanding Procurement fraud

Top 5 challenges in Procurement
Procurement fraud and its impact on the economy
Citizens experience with Procurement fraud
Examples of Procurement fraud
Impact of procurement fraud on an organisation
Fraud triangle

Procurement Fraud System controls

Guidelines to building procurement fraud systems controls.
General procurement issues
Guidelines to solving general procurement issues.

Scale of procurement fraud

Understanding the true scale of procurement fraud in an organisation
Understanding the true scale of procurement fraud in a Country
The true cost of procurement fraud

Conflict of interest and corruption

Defining Procurement fraud
Understanding conflict of interest
Conflicts of Interest for Employees
Conflicts of Interest for Employer
Conflict of Interest for Supplier

Anti-fraud controls: which are the most effective?

Tools for anti-fraud controls
Effectiveness of anti-fraud controls tools
Most common anti-fraud controls tools
Anti-fraud controls: which are the most effective?

Creating an anti-fraud culture

The key requirements for an anti-fraud culture
How to create an effective anti-fraud culture
Anti-fraud culture within an organisation
Pillars of an anti-fraud culture

Module 2

Fraud identification, detection, and investigation

Spotting procurement fraud amongst employees, what to look for.
Five-Step Approach to Fraud Detection
Procurement fraud taxonomy
Identifying the Red-Flags of Fraud in bidding process; Employees
Identifying the Red-Flags of Fraud in bidding process; Suppliers
Identifying the Red-Flags of Fraud; Picking the preferred
supplier; Employees
Identifying the Red-Flags of Fraud; Picking the preferred supplier; Suppliers
Identifying the Red-Flags of Fraud; Paying for Identifying the Red-Flags of Fraud; Delivery of goods and services goods and services
Identifying the Red-Flags of Fraud; contract management
Characteristics of fraud perpetrators
Key Fraud theories
Fraud triangle
Fraudster psychology
Fundamental characteristics of a fraudster
Contract fraud
- Defining Contract Fraud in Procurement
- Key areas for contract fraud in procurement
- Reducing risk of contract fraud
- How can you prevent contract fraud?
Fraud Detection Methods
- Corruption prevention mechanism
- Using HR Processes to combat Fraud.
- Company Fraud Policy
- Using Internal Controls to combat Fraud.
- Responsibilities for managing fraud.
Whistle blowing systems.
- Whistle blowing systems, which is most effective.
- Organisational factors that inhibit whistle blowing
- Creating an ethical culture
- Personal factors that inhibit whistle blowing
- Tips to help business eliminate procurement fraud and corruption.
Contract fraud
- Defining Contract Fraud in Procurement
- Key areas for contract fraud in procurement
- Reducing risk of contract fraud
- How can you prevent contract fraud?
Fraud Detection Methods
- Corruption prevention mechanism
- Using HR Processes to combat Fraud.
- Company Fraud Policy
- Using Internal Controls to combat Fraud.
- Responsibilities for managing fraud.
Module 3
Conducting an internal investigation
- Steps to conducting an internal investigation.
- Investigation path
- The investigation processes.