Fraud

eLesson 4

What is fraud?

Which of the following describes fraud?

An intimidation tactic sometimes used to make people cooperate during an act of wrongdoing. For example, harming or threatening to harm people or damaging or threatening to damage goods and property to prevent people from speaking out if wrongdoing is taking place.

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.

Stealing money or products and lying about it. Often financial or accounting wrongdoing which is intended either for personal gain or to give a false impression. Examples include stealing or diverting funds, misrepresenting or changing accounting records, transactions, invoices, financial statements…

eLesson on fraud:

5 mins left

Why should you care about fraud?

Fraud reduces the amount of Global Fund money available for medicines and important program services

Fraud results in higher prices of medicines and supplies

Fraud results in the supply of sub-standard products and medicines

Fraud results in medicine shortages due to theft or non-delivery

eLesson on fraud:

5 mins left

Fraud in Numbers

46% of allegations that the Global Fund OIG received in 2015 were related to fraud

eLesson on fraud:

5 mins left

How do you spot fraud?

Fraud has the following red flags:

Falsifying supporting documents such as invoices, accounting records or signatures

A supplier is located in a residential house and has no internet website

A supplier has the same address and/or phone number as a project staff

An unknown small supplier wins large contracts

The country of origin of the goods supplied differs from the tender or purchase documents

Bidding documents are poorly prepared and/or appear fake

Borrowing project money for personal use or unexplained money transfers

Using project equipment and supplies for personal use

A staff or contractor seems to enjoy sudden wealth or appears to live beyond his or her means

A supplier did not deliver the number, type and/or brand of equipment and supplies ordered

New products and equipment do not work or break down easily and frequently

Fewer products, equipment and/or inventory stocks are found than were purchased

Constant unexplained shortages of medicine stocks

Suspicious-looking documentation supporting a purchase of goods or expense claim

Relatives of management are frequently hired

Staff and contractors are hired who are not qualified for the job

Employment history or work experience cannot be verified

eLesson on fraud:

5 mins left

Case study on fraud

Real case studies on fraud from our archives