Module 3:  Common types of corruption in project procurement

Abuse of procurement procedures - Examples 1

This page, and the following pages, give examples of abuse of procurement procedures.

Eliminating likely winners in advance of bids

  • If there is a pre-qualification process which assesses potential bidders’ technical or financial capability in advance of permitting them to bid, the procurement manager overseeing the bid process may corruptly evaluate the pre-qualification in a manner which results in the likely winners of the bid being eliminated in advance of bid submission.
  • This makes it easier for a corruptly pre-selected bidder to win the subsequent bid, as genuine competitors have been improperly eliminated at pre-qualification stage.

Creating a false appearance of competition

  • Creating fictitious bidders:  The procurement manager may corruptly create fictitious bidders and fictious bid documents so that it appears that the necessary number of competitors have submitted bids.  However, only the corruptly pre-selected winning bidder may be genuine.
  • Cartels:  The bidders may corruptly and secretly agree with each other who will win the bid, and the other bidders then submit bids at a higher price than the pre-selected winner.  It therefore falsely appears that there has been a genuine competitive bid.

Inadequate bid advertising

  • The procurement manager may inform the corruptly pre-selected winner of the bid opportunity well in advance, but does not adequately advertise the bid opportunity to other potential competitors.
  • The outcome is that only the corruptly pre-selected winner is aware of the bid opportunity, so only it submits a bid.

Shortened response time / accelerated bid

  • The procurement manager may corruptly inform the pre-selected winner of the bid opportunity well in advance of publicly advertising the bid opportunity.
  • The manager then advertises the bid opportunity correctly, but implements a bid timetable which gives insufficient time for the other bidders to prepare a full or compliant bid.
  • The pre-selected winner therefore has a significant advantage due to its early warning.

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January 2025
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