Professional Documents
Culture Documents
F&C and Red Flags
F&C and Red Flags
• Unexplained inflated Bid price (Bids much higher than cost estimates)
Complaints from consultants. Not recording or addressing complaints in an effective and timely
manner/giving minimum or no attention to complaints
Payments not supported by adequate supporting documents, i.e. invoices, inappropriate
approval
Lack of evidence of services provided
Disclosure issues :Results of award not published to the public
Repeat awards to same consultant
Major Changes in team, contract terms, TOR and value before or immediately after signing the
contract
Creation of seemingly unnecessary changes to scope that result in unnecessary contract
extensions
Indication that government staff have been subcontracted, or are being used, to perform
portions of contracted work
Mitigation Measures
Controlling Corruption
To control corruption, one needs to understand how public procurement
system operates and identify the opportunities of corruption
Know your environment – while corruption varies across regions/sectors
corruption schemes (bribes, kickbacks, misrepresentation ) are often
similar in form, shape etc.
Develop systems which will deter people from wrong doing
Have checks and barriers
Develop robust monitoring mechanism so that cases of F&C is detected at
the earliest
Enlist the aid of civil society
Have effective prosecution mechanism
Some Good Practices
Training of procurement staff in detecting indicators of fraud and corruption
Checking the authenticity of certificates/other documents submitted along with the bids
from the issuers
Effective complaint handling mechanism
Maximizing the disclosure of information on website (including the reasons for rejection
of lower bids and details of contract award)
Involving independent/Subject matter experts in bid evaluation
Using only written communication with bidders (no personal meetings)
Carrying out procurement post reviews of a sample at regular intervals
Second Look?
The signs are only indicative. Flags may point just as equally to unintended
errors or vulnerability that increases the risk of corruption. What can be said
with certainty is that a ‘second look’ is warranted to attempt to get better clarity
to see if issue relates to capacity constraint or to suspected corruption
The list is only suggestive and not exhaustive. There can be more or different
signals so one needs to be aware, alert and ready for a ‘second look’ - always
Remember before awarding a Contract (done automatically if STEP is u
To check the list of debarred firms (available on external website of the World Bank).
To check the list of temporary suspended firms (available on Client Connection website –
password based access)
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Thank You
Additional Resources:
http://siteresources.worldbank.org/INTDOII/Resources/Red_flags_reader_friendly.pdf