Allegations that a provincial premier is enriching himself through tenders for friends and family have recently come to light. These allegations suggest that the premier has been using his political influence to further the business interests of those close to him.
This latest headline highlights the worsening problem of procurement fraud in South Africa.
Corruption has reached epidemic proportions. Research shows that South African companies experience more fraud and bribery than any other country worldwide**.
It has also been established that corruption has cost the country an estimated R650 billion over the last 18 years*.
In order to root out corrupt supply-chain activity, it is imperative for businesses and government departments to take the necessary steps to screen their employees as well as existing and potential suppliers.
We need to take a zero-tolerance approach when dealing with procurement fraud opportunists.
Such technology, which identifies possible criminal activity or conflicts of interest, is readily available within the marketplace.
Suspicious links that exist in the organisation, between staff and external suppliers, are then flagged for investigation.
Sadly, corruption in the supply-chain of business and government is fast becoming the norm rather than the exception. Media reports such as these reiterate that taking preventative measures against internal fraudulent activity is vital.
* According to recent data on corruption gathered by Crime Stats SA.
** According to recent data on corruption gathered by PricewaterhouseCoopers.
Ina van der Merwe is the Director and CEO of Managed Integrity Evaluation (MIE).
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