Red Flag: Questionable Agents, Consultants or Subcontractors

Contractors and consulting firms often employ local agents, consultants or subcontractors as conduits for bribe payments.  Be alert for agents and subcontractors who:

  • Are recommended or insisted upon by project or government officials;
  • Are related to or are colleagues of current or former government or project officials;
  • Have no pertinent experience or qualifications;
  • Charge excessive fees, usually expressed as a percentage of the contract value, or overcharge for the work performed;
  • Fail to deliver any work product, or deliver low quality, boilerplate work product;
  • Have been named in the press, or been the subject prior investigations or sanctions proceedings, for corruption or fraud;
  • Have a poor reputation for integrity;
  • Operate in highly corrupt environments.

Conduct a thorough due diligence background check on suspect parties.

This red flag can indicate the following scheme:

Click on the scheme listed above to see more information on the scheme, a more complete listing of its red flags and steps to determine if the scheme is actually present.