CPP Ass. 2
CPP Ass. 2
Bribery
Clients should implement and encourage whistleblowing methods that provide
whistleblowers with adequate protection. Clients can also improve the transparency of the
procurement process by disclosing the bidding and awarding procedures by publishing the
project details. The government must also strengthen current legislation, such as the
Prevention and Combating of Corrupt Activities Act (PRECCA), with harsher punishments.
2. Collusion
When requesting tenders, bidders should certify that their bid was produced and submitted
independently of other competing bidders. Introduce mandated, independently performed
audits for key projects to detect potential collusion. There are some traits that procurement
officials can also look out for like;
Bids received at the same time with similar or unusual wording, or with common
mistakes throughout multiple bids.
Comparable contact information for several bids
Pricing where each bid differs by the same amount.
The lowest bidder declines to accept the contract
3. Fronting
Employers/Clients should conduct extensive due diligence on bidding entities, assuring true
ownership and involvement by approved groups
4. Bid rigging
It is advised that entities employ a compliance manager who will do everything within their
power to guarantee that the management and employees of the organization fulfill their anti-
corruption pledges. Compliance officers will ensure that measures, such as disqualification
from tenders and the enforcement of the bid requirements, are upheld.
5. Kickbacks
Employee purchases over a specified amount should be audited. Organisations should create
a gratuity policy. Organisations can also implement strong disclosure procedures for
employees to disclose any personal relationships or interests in bidding companies.
6. Conflict of Interest
Implement strong disclosure procedures for procurement officials, requiring them to disclose
any personal relationships or interests in bidding companies. Project stakeholders must be
obligated to share essential information that may show potential risks of corruption (such as
regarding their Principal stockholders, officials, and finances Status, Agents, Joint Venture
Partners, Subcontractors)
7. Fraudulent documentation
Conduct routine and unplanned audits of the paperwork submitted during the procurement
process. Documents should also be verified against existing databases (e.g., professional
council registrations, company registration, tax status).
8. Bid Suppression
Make bidding information available to prevent potential bidders from being suppressed
through unethical behaviors.