Procurement – Receipt of Goods / Services
Red Flags
Frequent payments just below a certain authorisation threshold.
Staff may be splitting invoices to circumvent higher-level approval, enabling colluding suppliers to secure payments.
Multiple invoices issued on the same date.
Suppliers and staff may be issuing fake invoices for undelivered goods to embezzle funds.
A supervisor frequently approving disbursements to vendors lacking sufficient supporting documents, often citing various excuses.
The supervisor may be accepting kickbacks from colluded vendors in exchange for approving inflated or bogus payments.
Frequent partial deliveries or provision of substandard goods.
Staff may be accepting bribes to sign off on incomplete/substandard deliveries.
Increase in number of complaints about procured products or service.
Staff may have accepted advantages from colluding suppliers for conniving at their poor quality/performance.
Replacement or repair within an unreasonably short timeframe.
Staff may have accepted advantages from colluding suppliers for conniving at their poor quality/performance.
Unreasonably high cut of materials compared with industry norm or other branches within the company.
Staff may have accepted advantages from colluding suppliers for conniving at their poor quality/performance.
