How fraud happens during procurement

The Senate Blue Ribbon Committee is investigating the Department of Health’s transfer of P42 billion funds to the Department of Budget and Management Procurement Service for the procurement of medical supplies at the onset of the COVID-19 pandemic last year.

The ongoing probe also shed light on the needs for a resilient procurement system to prevent corruption amid a health crisis.

In an interview on The Mangahas Interviews, Jay-R Batiles of the Association of Certified Fraud Examiners said fraud was an "intentional act or omission designed to deceive others resulting in the victim suffering a loss and the perpetrator achieving."

Batiles then explained how fraud can happen during procurement.

According to Batiles, there are four phases during procurement:

1. Pre-solicitation phase - this is where the company decides what it needs
2. Solicitation phase - this is the stage where the company looks for possible suppliers.
3. Evaluation and award phase - this is where the company starts to look for qualified bidders who will eventually be its supplier or contractor
4. Post-award and administration phase - the actual procurement

"Sa bawat hakbang, sa every stage, may tinatawag na potential fraud schemes," he said.

Watch the full interview for how fraud is committed at every phase. -Ma. Angelica Garcia/NB, GMA News