Are Companies Doing Enough to Stop Procurement Fraud?

Procurement fraud is costing global companies billions of dollars a year. So why can't they put a stop to it? The problem takes many forms: bribes, kickbacks, collusive bidding, conflicts of interest, exclusion of qualified bidders and the falsification of invoices, to name a few. The cost to companies hasn't been fully quantified, but there's no doubt that it's huge. In one recent case in Australia, the chief executive officer of fleet-management company Orix was accused of making corrupt payments of nearly US$388,000 to Coca-Cola Amatil, to secure vehicle-leasing contracts valued in the tens of millions. With so much at stake, why does the practice continue to plague companies today? On this episode, we speak with Tania Seary, founder of Procurious. She offers her opinion as to why businesses have failed to stamp out procurement fraud, how it can be detected, and what must be done to stop it. In addition, she raises the question of licensing procurement professionals, and talks about the skills and training that are needed to create a corporate culture that doesn't tolerate procurement fraud.