The Basics of Evidence for Fraud and Corruption Investigators

This paper briefly discusses the basic principles of evidence with which fraud and corruption investigators should be familiar, followed by their application to the proof of Corrupt and Fraudulent Practices. I. THE BASIC PRINCIPLES OF EVIDENCE The two most important principles of evidence for investigators are relevance and weight. Relevance Probably the most fundamental rule […]

Financial Investigation of the Subject

See Step Seven, “Prove Illicit Payments” of the Ten Basic Investigative Steps in a Complex Corruption and Fraud Case for more information on how to conduct a financial investigation of the subject.

Case Examples of Bribes and Kickbacks

West Africa, Nutrition Project Local project and international donor officials in a US$25 million nutrition project approved multiple sole source training contracts to local consulting firms in exchange for kickbacks of 12½% of the contract values.  The bribes were paid in cash in local currency to middlemen who distributed the proceeds to the corrupt officials.  […]

Case Examples of Collusive Bidding by Contractors

South East Asia, Road Projects From 2000 to 2003 small groups of local construction companies rigged contract awards in road rehabilitation projects in collusion with government and project officials.  To execute the schemes, the project officials would, among other things, deliberately fail to announce or publicize requests for bids in a timely manner, refuse to […]

Case Example of Unbalanced Bidding

Central Asia A “representative” of a Project Implementation Unit paid an unannounced visit to a US company that was bidding for a $25 million agricultural testing laboratory, and told it that it would win the contract if it hired the rep as a “consultant” to help prepare its bid.  The rep said his consulting fee […]

Case Examples of Hidden Interests

West Africa, Road Project The Director of a road rehabilitation project instructed an international firm competing for the construction supervision contract to include a certain local subcontractor in its proposal, and to allocate 10% of its bid price to it. The subcontractor was to provide labor to assist in land surveys. The project official assured […]

Case Example of Unjustified Sole Source Awards

Development Agency The head of corporate procurement for an international development agency became progressively more concerned as she witnessed the award of more than 20 sole source contracts for IT services to a small start-up company, totaling more than $4 million over three years, processed at the personal direction of a senior executive.   Eventually she reported […]

Case Example of Collusive Bidding by Contractors

South East Asia, Road Projects From 2000 to 2003 small groups of local construction companies rigged contract awards in road rehabilitation projects in collusion with government and project officials.  To execute the schemes, the project officials would, among other things, deliberately fail to announce or publicize requests for bids in a timely manner, refuse to […]

Case Example of Split Purchases

Nutrition Project The owner of a small training company boasted to colleagues that he was receiving multiple sole source contract awards in exchange for kickback payments to local project officials and the supervising employee of the international donor.  The boasts eventually reached the donor agency which conducted an investigation. Their inquiry showed that the training […]

Case Example of Rigged Specifications

IT Contract A former employee of an international IT firm reported that the company had won a major contract because its agent had bribed Project Officials to tilt the hardware and software specifications to match the company’s products.  In fact, the former employee said, the Project team allowed the firm to draft the specifications itself, […]