Current Fraud Alerts
Procurement Fraud The risks of procurement fraud remain across the NHS, and between 2020 and 2022 the NHS Counter Fraud Authority (NHSCFA) set out to understand the true nature and potential value of the procurement fraud risks. In 2022, the NHSCFA reported the findings of its national NHS procurement exercises, including an evaluation of NHS procurement spending during the Covid-19 pandemic and a national exercise that focused on procurement fraud risk areas, including contract management and purchase order vs non-purchase order spend. The reports highlighted two areas where performance could be improved, these being due diligence and contract management. Due diligence failings : The reviews revealed a concerning lack of rigorous checks on new suppliers. Before entering into any contract, it’s crucial to thoroughly understand the company’s
Strengthen contract management : Assign dedicated contract managers, ensure regular oversight from procurement teams, and establish clear performance indicators to track progress and identify potential risks. Report suspicious activity : If you observe any concerns about procurement practices or potential fraud, report them immediately through your internal channels or directly to the NHSCFA.
viability, reputation, and ability to deliver. Insufficient due diligence exposes the NHS to a multitude of risks, including poor performance, non-delivery, fraud, reputational damage, and patient safety issues. Building a robust and effective due diligence process is paramount, and addressing this shortfall has been a recurring concern voiced by the NHSCFA. Contract management vulnerabilities : The procurement exercises found numerous vulnerabilities in existing contracts due to certain organisational behaviours and practices, leading to an increased risk of fraud. Notably, some lacked dedicated contract managers, oversight from procurement teams, and clear performance metrics. Strategic oversight from procurement professionals strengthens knowledge within the organisation, leading to sharper and more effective key performance indicators (KPIs) when it comes to reprocuring goods and services in the future.
While these findings might seem daunting, there are positive steps that can be taken to make a difference: Raise awareness : Share this information with colleagues involved in procurement processes. Encourage open discussions about best practices and staying vigilant against potential fraud. Implement robust due diligence : Establish clear procedures for verifying supplier viability, reputation, and ability to deliver. Don’t rush into contracts without conducting thorough checks.
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