Case Example of Product Substitution

Equipment Supply Contracts

A detailed review of several donor-financed health sector projects revealed numerous instances of the substitution of substandard medical equipment and materials used in the construction of hospitals, including the inoperable medical equipment illustrated in the photos below.

Previous similar reviews and investigations revealed that such schemes are often implemented through bribes of relatively small gifts and favors paid by the suppliers to local inspectors to induce them to accept the substandard equipment.  In the most egregious cases of fraud, the suppliers often are empty “shell companies” set up by Project Officials for the sole purpose of obtaining the supply contracts and profiting from the substandard goods.