![\"fraud](\"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-content\/uploads\/sites\/3\/2020\/03\/chris-liverani-9cd8qogeniy-unsplash1-300x194.jpg\")
Procurement fraud or fraud from the procurement of goods and services is a problem for companies both small and large throughout the world. A prime example of a fraud case that was related to the procurement of goods and services is with the fast food giant KFC.The fried chicken giant temporarily closed 900 of its stores in the UK in 2013 due to a problem with their chicken supplier.<\/p>\n
Procurement fraud generates a negative impact on the company’s financial health, operational effectiveness, and company reputation. In Indonesia, there are many cases of corruption through procurement that involves private companies and government institutions. The Indonesian Corruption Watch (ICW) recorded that the state loss reached 1.02 trillion rupiah throughout 2017 due to fraud from the procurement of goods and services.<\/p>\n
According to OECD: Integrity in Public Procurement (2007)<\/em>, public procurement have been identified as the government activity that is the most vulnerable to corruption. As a major interface between the public and the private sectors, public procurement provides multiple opportunities for both public and private actors to divert public funds for private gain.<\/p>\n Therefore, both public and private companies need to take preventive action by implementing comprehensive internal controls. One element of internal control is due diligence on the company\u2019s potential partners or third parties.<\/p>\n The idea of due diligence is to uncover any potential liability on potential third party or work partner. If a third party is involved in a fraud or other wrongdoings, the company\u2019s reputation as a partner is also at risk even though the company is not directly involved in the violation. Therefore, due diligence minimizes the company\u2019s reputational risk.<\/p>\n In relation to the prevention of bribery risk, the Indonesian government has put ISO 37001: Anti-Bribery Management System as a company liability standard that makes due diligence even more critical.<\/p>\n Clause 8.2 of ISO 37001 8.2, states that a company shall assess the nature of the bribery risks in relation to specific transactions, projects, activities, business associates and personnel, and shall be updated at a defined frequency so that new information can be taken into account.<\/p>\n <\/p>\n Integrity Indonesia with up to more than fifteen years of experience in compliance industry offers you a comprehensive due diligence service through Know Your Vendor\u2122<\/a>.<\/p>\n Know Your Vendor\u2122 solution helps our clients mitigate supply chain risks by providing a consolidated panorama for due diligence on third parties.<\/p>\n By using the most recent technologies to monitor clients\u2019 supply chains, Know Your Vendor\u2122 allows the client to import their vendors and assigns to each of them a questionnaire, this is a critical step for the due diligence process. Clients can follow the progression of the due diligence in real time,as well as access the report and score at a click of a button.<\/p>\n For more detailed information on how Know Your Vendor\u2122 and other compliance services can help your company, contact us<\/a><\/strong> today.<\/p>\n <\/p>\n What ISO 37001 ABMS Says About Due Diligence on Third Parties<\/a><\/strong><\/p>\n 3 Ways to Prevent Conflict of Interest from Damaging Your Profits<\/a><\/strong><\/p>\n <\/p>\n <\/p>\n Procurement fraud or fraud from the procurement of goods and services is a problem for companies both small and large throughout the world. A prime example of a fraud case that was related to the procurement of goods and services is with the fast food giant KFC.The fried chicken giant temporarily closed 900 of its […]<\/p>\n","protected":false},"acf":[],"featured_image_url":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-content\/uploads\/sites\/3\/2020\/03\/chris-liverani-9cd8qogeniy-unsplash1.jpg","_links":{"self":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts\/5836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/comments?post=5836"}],"version-history":[{"count":0,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts\/5836\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/media\/5848"}],"wp:attachment":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/media?parent=5836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/categories?post=5836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/tags?post=5836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Due diligence to uncover liability
\n<\/strong><\/h3>\nKnow Your Vendor <\/strong><\/h3>\n
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\nPhoto by Chris Liverani<\/a> on Unsplash<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"