Detecting Procurement Fraud in the Public Sector

Content
This study provides an in-depth examination of detection mechanisms for procurement fraud in the public sector, identifying common forms of fraud, key indicators, and strategies for mitigation. The research explores the complexities of procurement fraud, including bid rigging, bribery, and embezzlement, and evaluates the effectiveness of various detection techniques.
Purpose
The primary purpose of this study is to guide public sector entities on addressing procurement fraud through proactive monitoring and the adoption of advanced technological detection and governance. The research aims to inform policy development and implementation, enabling public sector organisations to strengthen their anti-fraud measures and protect public resources.
Methods
A structured literature review (SLR) approach was employed, a systematic review of existing literature on procurement fraud detection mechanisms in the public sector. The research involved a comprehensive search and analysis of peer-reviewed articles, identifying key themes, trends, and gaps in the literature.
Findings
The study reveals that procurement fraud is a complex and widespread challenge, requiring a multifaceted approach to detection and prevention. Advanced detection techniques, such as data analytics, e-procurement platforms, and whistleblower mechanisms, are effective in identifying and mitigating fraudulent activities. The research highlights the importance of robust internal controls, digital solutions, and employee education initiatives in strengthening anti-fraud measures.
Managerial Implications
Public sector entities can benefit from implementing robust internal controls, digital solutions, and employee education initiatives to strengthen anti-fraud measures. The study provides guidance for policy development and implementation, highlighting the importance of proactive monitoring and advanced technological detection in addressing procurement fraud. Key recommendations include; implementing data analytics and artificial intelligence to enhance detection capabilities, establishing effective whistleblower mechanisms and protecting whistleblowers, strengthening internal controls and segregation of duties, providing regular training and education for procurement staff, and adopting e-procurement platforms to enhance transparency and accountability.

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