eLesson 2
What is collusion?
What is the correct definition of collusion?
A secret arrangement to gain an unfair advantage. When two or more people reach a secret agreement to influence something or to deceive others. Examples include trying to influence a tender or showing favoritism to a particular bidder or company for a contract. This also covers conflicts of interest. This is when, for example, family or personal connections result in an unfair and uncompetitive tender process.
Stealing, diverting or counterfeiting health products. For example, taking drugs from the public health system to sell privately for profit resulting in free drugs being denied to patients. This can also result in sub-standard or counterfeit health commodities being sold in pharmacies and markets.
The misuse or abuse of power for private gain. Examples include giving or receiving a bribe or a kickback, paying an official to win or asking for money to award a contract, offering or accepting excessive gifts or hospitality to influence a decision.
eLesson on Collusion:
4 mins left
Why should you care about collusion?
Collusion between suppliers is not permitted by the Global Fund
It reduces fair competition and drives up the prices of medicines and health products
It discourages honest, qualified suppliers from participating in Global Fund grant activities
It facilitates the supply of sub-standard health products
It prevents Global Fund programs from achieving full impact
eLesson on Collusion:
3 mins left
eLesson on Collusion:
4 mins left
How do you spot collusion?
Collusion can have the following red flags:
The same suppliers wins multiple contracts
Unexplained increase in product prices
Decrease in product quality
Complaints of unfair competition from losing bidders
Anonymous or employee complaints about buyer and vendors
Qualified suppliers refrain from bidding
Closed bidding and using unapproved vendors
Contract awards rotate among the same group of suppliers
Similar-looking bids from different suppliers; bids with the same mathematical or spelling errors
Similar address, phone numbers and email between bidders
The winning bidder is always the last one to bid
Favorable treatment given to a particular bidder as compared to others
Subjective technical selection procedures and disqualifications
No penalties for delivery delays or faulty products
Bidders are prevented from competing for unfair reasons
Losing bids are poorly prepared or missing basic bid documentation
Information exchange between bidders
Standardisation of prices suggested by different bidders
Losing bidder hired as sub-contractors
eLesson on Collusion:
5 mins left
Case study on collusion
Read a case study about collusion from the Office of the Inspector General archives
Collusion to Win a Contract for Tuberculosis Patient Care
01.12.2015
A supplier colluded with and paid kickbacks to a procurement officer from a Principal Recipient to win multiple tenders.
