Corruption Investigations

Corruption in the private sector includes bribery, conflicts of interest, kickbacks, collusion, and extortion.

World leaders frequently cite figures for the global cost of corruption to raise awareness and promote anticorruption action. A popular estimate is that more than $2.6 trillion, or 5% of global GDP, is lost to corruption annually around the world (World Bank Blog 2022).

The UN refers to corruption and illicit financial flows cost the global economy US$3.6 trillion, according to the UN.

An estimated 1 trillion US$ is paid in bribes while an estimated US$2.6 trillion are stolen annually through corruption – a sum equivalent to more than five per cent of the global GDP.

The ACFE 2022 Global Fraud Survey indicated corruption occurred in 50% of the cases examined with a mean loss of $2,647,000.

Corruption in the Workplace
Your company is not exempt from corruption. If you engage suppliers through any form of procurement process, then you are at risk.
Corruption is prevalent in the procurement process.

There are two areas to consider – the first is collusion with the vendor. This includes:

• Bid rigging.
• Suppression of bids
• Cover bidding (competing companies submit bids too high but ensure the minimum quote is obtained)
• Fixing of prices, and
• Rotation of bids
• The second area is supplier fraud. This includes:

• False invoicing
• Counterfeit products (including parts)
• Substitution of products
• Variation abuse
• False declaration re products and services to be provided, and

• Manipulation of the delivery of goods and services.

You must implement the following:

• Assess all associated risks.
• Develop policies and procedures relating to procurement.
• Engage in due diligence and ensure there are set processes in place for procurement.
• Ensure personnel are trained in what to consider when checking for any signs of procurement fraud internally and externally, and
• Monitor and test your processes regularly.

ACFE survey indicated the average corruption scheme lasted 12 months with an average monthly loss of $12,500. The survey also considered frequency of corrupt activities as compared to the size of the firm. Corruption identified in 24% of companies under 100 employees.

ACCA can help you – Mick Symons is an experienced investigator in corruption. He spent more than 15 years as the Officer-in-Charge of the Anti-Corruption Branch of the South Australia Police and as Executive Director of the Investigation Division of the New South Wales Independent Commission Against Corruption (ICAC). His extensive experience and deep understanding of corruption-related issues make him an invaluable asset. If you’re facing corruption challenges in your organization, ACCA, under Mick’s expertise, is here to assist.

Contact us today for guidance and support in navigating these complex issues.