1. Paul Guile FCIPS,MA
CIPS Global Procurement Fraud Advisor
“Is procurement fraud a risk within the Health Sector?”

2. Introduction
Procurement is one of the highest risk activities. No one company can operate without some form of procurement
Procurement fraud usually requires some form of inside collaboration, therefore the fraudsters will know and understand how your business works
This exposes your company to other types of fraud
Procurement fraud can have a long term loss

3. Have you installed your procurement fraud strategy?

4. CIPS Global Procurement Fraud initiatives
Initiated British Standard BS10501
Delivered an e learning procurement fraud course to the Government Procurement Service, UK Cabinet Office
Just launched the first global on line procurement fraud training course
NHS UK and Scotland are currently reviewing this for national roll out
Working with NHS Protect to have joint badged NHS/CIPS national procurement fraud guidance
Global SLA with top tier global oil and gas organisation
Nov 2013 Procurement fraud tour of Australia
2014 Global masterclass tour covering Saud Arabia, Singapore, South Africa, Hong Kong, Uganda, Kenya, Brazil and Dubai
Working with Teesside University's Centre for Fraud and Financial Crime to develop the first PGC in procurement fraud

5. Transparency International: No. 17

6. Indicator- June 2013

7. Why does it occur? Global Themes

8. Why does Procurement Fraud occur
Systems override or a controls failure
Procurement fraud is often not recognized as a board risk
No Procurement fraud strategy is in place
No training regime. What do staff watch out for?
Traditional fraud controls do not cover procurement fraud
Segregation of duties: Procure to pay controls, 3 way match. What about the contract?
Delegated Procurement Authority overridden
Procurement process bypassed
Orders sole sourced
Orders split to avoid tender process
Lack of Unauthorised master data file access

9. Procurement Fraud Typologies

10. Case study “ How it can go wrong”

11. Thank you, any questions?