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.