LexisNexis Risk Management has launched a web-based system to assist in identifying and preventing fraud and corruption within the procurement environment.
The ‘ProcureCheck’ system gathers information needed to conduct due diligence and vetting on vendors and employees, such as information relating to property, people, companies and close corporations, Rudi Kruger, General Manager of LexisNexis Risk Management, told SmartProcurement.
The system enables procurement departments to access the information through a single, easy-to-use website at anytime.
ProcureCheck can assist users to recognise conflicts of interest within their organisations and potential supply chain partners by identifying potential connections and ownership of property, highlighting business interests of employees within an organisation and, through the South African Fraud Prevention Services, identify possible fraudulent activity within vendors and employees.
Promoting ethics in Procurement
ProcureCheck promotes a culture of strong ethical standards and good business practice in supply chain management, helping to eliminate corruption and fraud.
Organisations tend to focus on reducing their negative ethics risks, since they understand that unethical practices can expose them to financial loss owing to theft, fraud and corruption. However, it is equally important that organisations focus on the benefits of a strong ethical culture. In the contemporary business environment, organisations with a strong ethical culture will have a competitive edge over their unethical counterparts.
ProcureCheck assists in building an environment where business can be conducted with integrity, respect and mutual trust among those involved in the procurement process in order to comply with the highest ethical standards, in accordance with 16A8.1 of the Public Finance Management Act (PFMA).
The system can ensure that supply chain officials meet all conditions as stipulated in 16A8.3 of the PFMA by identifying possible conflicts of interest that may arise during the co-ownership of property, additional directorship of conflicting or bidding organisations, or through the acceptance of gifts in the form of immovable property, thus combating corruption and fraud within the supply chain management system.
Reports generated by ProcureCheck can also be used by accounting officers when submitting information to the relevant treasury (16A11 of the Act).
ProcureCheck offers some of the following features:
• Provides automated irregularity alert reports.
• Provides vendor and staff reports (useful for King III Committees).
• Allows the creation of internal vendor lists (preferred and blacklisted vendor indicators).
• Vendor vetting (on an ad hoc or batch basis).
• Ongoing monitoring.
• Detailed conflict of interest report.
• Manage Reputational Risk.
For more information on ProcureCheck email firstname.lastname@example.org.