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Fraud in the use of Quotation Method

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Re: Fraud in the use of Quotation Method

Post  RJM on Mon Oct 12, 2009 5:51 pm

RSM, wrote;
In this country certain practices exist and have been taken as a norm in public procurement. It is not uncommon to find a potential bidder going around his friends asking them to prepare a hiked bid to escort his tender or a public official obtaining one genuine(?) quotation from a supplier and other fake quotations to escort this desired supplier. Did you know that this amounts to fraudulent practice?

RSM, I agree with you that this amount to fraudulent practice provided that it can be proved beyond reasonable doubt. I think the problem is how to detect this practice sometimes known as BID-RIGGING

There are some very common bid-rigging practices [From Wikipedia, the free encyclopedia]:

Subcontract bid-rigging occurs where some of the conspirators agree not to submit bids, or to submit cover bids that are intended not to be successful, on the condition that some parts of the successful bidder's contract will be subcontracted to them. In this way, they "share the spoils" among themselves.

Bid suppression occurs where some of the conspirators agree not to submit a bid so that another conspirator can successfully win the contract.

Complementary bidding, also known as cover bidding or courtesy bidding, occurs where some of the bidders bid an amount knowing that it is too high or contains conditions that they know to be unacceptable to the agency calling for the bids.

Bid rotation occurs where the bidders take turns being the designated successful bidder, for example, each conspirator is designated to be the successful bidder on certain contracts, with conspirators designated to win other contracts. This is a form of market allocation, where the conspirators allocate or apportion markets, products, customers or geographic territories among themselves, so that each will get a "fair share" of the total business, without having to truly compete with the others for that business.

These forms of bid-rigging are not mutually exclusive of one another, and two or more of these practices could occur at the same time. For example, if one member of the bidding ring is designated to win a particular contract, that bidder's conspirators could avoid winning either by not bidding ("bid suppression"), or by submitting a high bid ("cover bidding").


The challenge is how to detect these practices before concluding it is fraudulent practices.

RJM

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Fraud in the use of Quotation Method

Post  RSM on Wed Oct 07, 2009 12:29 pm

In this country certain practices exist and have been taken as a norm in public procurement. It is not uncommon to find a potential bidder going around his friends asking them to prepare a hiked bid to escort his tender or a public official obtaining one genuine(?) quotation from a supplier and other fake quotations to escort this desired supplier. Did you know that this amounts to fraudulent practice?

RSM

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