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Guide to Combating Corruption & Fraud in Infrastructure Development Projects

  • Detection
    • Complaints
      • General initial interview questions
      • How to Generate Complaints and Reports
      • List of fraud reporting sites for Multilateral Development Banks
    • Red Flags
      • Red Flags Listed by Project Cycle
      • “Visible red flags” of Implementation Fraud
      • Proactive Fraud Detection Tests
    • Due Diligence
      • “Top Five” Due Diligence Background Checks
      • Free and Subscription Internet Sites
      • Local and On-Site Due Diligence Checks
      • Due Diligence Service Providers
  • Proof
    • Proving Common Schemes
      • Corruption Schemes
      • Bid Rigging Schemes
      • Collusive Bidding Schemes
      • Fraud Schemes
      • The Basic Steps of a Complex Fraud and Corruption Investigation
    • Elements of Proof for Sanctionable Offenses
      • Elements of Proof of Corrupt Practices
      • Elements of Proof of Obstructive Practices
      • Elements of Proof of Coercive Practices
      • Elements of Proof of Collusive Practices
      • Elements of Proof of Fraudulent Practices
  • Evidence
    • The Basics of Evidence for Investigators
  • Prevention
    • Anti-fraud Resources
Home » Proof » Case Examples » Case Example of False Statements and Claims

Case Example of False Statements and Claims

Construction Contract

A losing bidder for a large construction contract complained to the international donor that the Project’s Bid Evaluation Committees had improperly disqualified it and another firm for trivial and correctable errors in their bid documents, leaving only one remaining bidder, which was awarded the contract.

The investigation confirmed that the two firms had been unfairly disqualified (over the objection of the donor, which strongly urged that their bids be evaluated), and that the winning bidder was a previously unknown one man “briefcase company” without the capacity to do the work. The investigation further revealed that the company had falsely claimed in its bid that it had thousands of employees employed in eight offices world-wide, and that it had successfully performed several prior similar contracts.  Not surprisingly, investigators learned that the winning bidder had agreed to pay bribes to several members of the Bid Evaluation Committee in exchange for the contract.

Category: Case Examples

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