Your Guide to Contractual and Procurement Fraud Prevention Singapore 2019
In Dec 2018, a technical officer with national water agency PUB abused his position and duped it into awarding 718 contracts worth almost $2 million to companies registered under his wife's name. He was sentenced to 45 months jail Contract and Procurement fraud is one of the most, if not the most, common fraud schemes within an organization. Too often, contracting officials and others responsible for placing orders or awarding contracts compromise their integrity and eliminate fair and open competition to favor vendors offering bribes or gifts. This results in unfair playing fields for vendors and causes financial losses for businesses, government agencies, and taxpayers. Over 29 procurement fraud schemes can occur in any stage of the whole procure-to-pay cycle. Some of these frauds involve conflict of interest, corruption and collusion, which are very difficult to be detected. Managing procurement fraud risk have always been a painful and unfruitful attempt by many organization.
Be Equipped with the Right Skills and Toolkits
It need not be – if you are equipped with the right knowledge on procurement process, systems, fraud modus operandi and red flag, as well as the skills to detect them early! Using appropriate strategies and tools we can even prevent fraud and manage procurement risk to the lowest!
Contractual & Procurement Fraud Prevention Tools and Techniques
In this 1 Day workshop, you will gain complete overview of procurement processes and systems. All stages within procurement lifecycle will be discussed to reveal the “inside” of sourcing and buying activities and its unspoken rules. You will work through several practical exercises and case studies to finely hone your ability to prevent, detect and respond to contract and procurement fraud. From understanding the personality risk profiles of the typical procurement fraudster to reviewing a contract file to uncover potential fraud, this workshop provides a deep dive into the best practices of combatting threats in contract and procurement functions.
The course aims to cover the practical aspect of tools and techniques procurement officers and auditors should possess to address potential frauds and lapses in purchasing lifecycle.
Upon completion of this course, you will:
- Recognize and combat the factors that motivate procurement fraud offenders
- Assess or audit the procurement to identify red flags of fraud schemes
- Understand the process and procedures of a systematic procurement function
- Map various procurement methods to relevant high-risk schemes and the related integrity controls used to prevent potential misconduct and minimize/eradicate procurement control weakness
- implement procurement fraud risk prevention strategy and processes
- Determine the degree of evidence required to meet administrative, civil and criminal thresholds for resolution
- Overview of Procurement Fraud
- Reasons why Difficult to Detect
- 29 Schemes in 8 Categories of Procurement Frauds
- Specification manipulation
- Fake buys
- Delivery schemes
- False claims
- Bidding schemes
- False info
- Detecting Procurement Frauds Red Flags
- Investigating Procurement Frauds
- Document Review and Data analytic
- Surveillance and Digital Forensic
- Information Seeking Interviewing
- Confession Seeking Interview
- Basic concept of Evidence
- Effective Forensic Investigation Framework
- Setting Governance on Procurement Fraud Risk
- Strategies (Tone at the top)
- Structure (Centralized, Decentralized Procurement, IPO)
- Process (COC, Rotations, Forced leave, WB Hotlines)
- People (Position screening, Training, Rewards and Incentive)
- Governance Structure (Oversight structure, 1st, 2nd and 3rd line defense)
- Systems (authorization matrix, SOD, system validation)
- Common Procurement Principles, Processes and Challenges
- Sourcing vs Buying
- Low cost vs best value
- RFx, tender procedures, online procurement platform
- Market place platforms (vendor specific, non-vendor specific)
- Procurement Operational Challenges
Who Will Benefit From This Course?
This workshop is beneficial to HR professionals and anyone who are tasked with the responsibility for developing/ updating a policy manual or employee handbook, or have a keen interest in doing so. Managers of small and medium enterprises will find this course useful in managing employee relations.
Mr Kent Hoh, Certified Fraud Examiner (CFE) and a Certified Information Systems Auditor (CISA). LLB (University of London)
Kent holds an MBA, Bachelor of Law (LLB) the University of London, and a Bachelor of Accounting (Hons). He is a Certified Fraud Examiner (CFE) and Certified Internal Auditor (CIA). He also passed the qualifications exams of the UK Chartered Secretary and Administrator (ICSA), Malaysian Institute of Certified Public Accountants (MICPA) and Certified Information System Auditor (CISA).
Kent Hoh is currently serving as Vice President of Internal Audit in a company listed in SGX. He is an audit, fraud investigation, corporate governance expert and has wide-ranging experience in leading compliance and audit functions in the Asia Pacific as well as forensic investigation team globally. Mr Kent Hoh conducted various successful projects in Singapore, Indonesia, Malaysia, India, China, Japan, Australia, New Zealand, Brazil, Hungary, Poland, etc. Several of the projects involved multi-million dollars’ scheme and made headlines locally. With insights from extensive compliance consulting work across Asia, Mr Kent Hoh will present current legal frameworks, concepts, and tools that examine the best practices used by leading organizations today in establishing their whistle blowing program.