corruption
Download
Skip this Video
Download Presentation
Corruption

Loading in 2 Seconds...

play fullscreen
1 / 26

Corruption - PowerPoint PPT Presentation


  • 122 Views
  • Uploaded on

Corruption. Pop Quiz. What are the two principle schemes involving bribery?. Corruption. Conflicts of Interest. Bribery. Illegal Gratuities. Economic Extortion. Purchase Schemes. Invoice Kickbacks. Sales Schemes. Bid Rigging. Other. Other. The Statistics. Frequency?

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Corruption' - finn-mack


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
pop quiz
Pop Quiz

What are the two principle schemes involving bribery?

slide3
Corruption

Conflicts of

Interest

Bribery

Illegal

Gratuities

Economic

Extortion

Purchase

Schemes

Invoice

Kickbacks

Sales

Schemes

Bid Rigging

Other

Other

the statistics
The Statistics
  • Frequency?
  • Median loss?
  • Dollar Loss?
  • Detection?
  • Who did it?
  • Company size?
what is bribery
What is Bribery?
  • Influence an official act
  • Buys influence
  • Commercial bribery
  • Kickbacks
  • Bid-rigging schemes
what are kickback schemes
What are Kickback Schemes?
  • Invoice: overpriced or fictitious
  • Collusion
  • Purchasing
types of kickback schemes
Types of Kickback Schemes
  • Diverting business to vendors
    • Steady stream of business
    • Any incentives to improve quality of merchandise? Lower Prices?
overbilling schemes
Overbilling Schemes
  • Employees with approval authority
    • Inflated invoices
    • Overstates cost or fictitious sales
overbilling schemes1
Overbilling Schemes
  • Employees lacking approval authority
    • Circumvents purchasing controls
    • false vouchers
    • Forge approval signature
    • Access to password
    • Very tough to detect.
other kickback schemes
Other Kickback Schemes
  • Discounts for bribes
  • Slush funds
detecting kickbacks
Detecting Kickbacks
  • Normal controls?
  • Price inflation?
  • Monitor trends
  • excessive purchases
  • Shortages
  • Inferior goods
  • actual vs budgeted
preventing kickbacks
Preventing Kickbacks
  • Independent employee review.
  • “Right to audit” clause
  • Written policies re:
    • Soliciation or acceptance
    • Undisclosed interests
    • Ethics policies with punishment
what are bid rigging schemes
What are Bid-Rigging Schemes?
  • Even playing field
  • Power over bidding process
  • Who might potential targets be?
four good times to rig bids
Four Good Times to Rig Bids
  • Pre-solicitation
  • Specification
  • Solicitation
  • Submission
how can bid rigging schemes be detected
How can bid rigging schemes be detected?
  • Look for:
    • Unusual patterns
    • Big price differences
    • Predictable rotation
    • Losing bidders subcontractors
    • Same address and phone number
    • Few bidders
    • Split up projects
what do they get
What do “they” get?
  • Cash
  • Future employment/ownership
  • Gifts
  • Credit card bills
  • Loans
  • Property
illegal gratuities vs economic extortion
Illegal Gratuities vs Economic Extortion
  • Illegal gratuities
    • Given to reward
  • Economic extortion
    • “Pay up or else”
conflicts of interest
Conflicts of Interest
  • undisclosed economic or personal interest
  • Victim organization is unaware
  • Fraudster approves the invoice because of his own hidden interest in the vendor
  • Two major types
    • Purchasing schemes
    • Sales schemes
purchasing schemes
Purchasing Schemes
  • Overbilling schemes
  • Turnaround sales
sales schemes
Sales Schemes
  • Underbillings
  • Writing off sales
other conflict of interest schemes
Other Conflict of Interest Schemes
  • Business diversions
  • Resource diversions
  • Financial disclosures
so how can we prevent detecting these conflicts of interest
So . . . . How can we Prevent Detecting These Conflicts of Interest
  • Ethics policy
  • annual disclosure statement
  • anonymous reporting mechanism
  • Compare vendor to employee
ad