Source: ICAEW

Procurement fraud poses a significant threat to public funds, with the UK public sector losing an estimated £23bn annually to such activities. This form of economic crime not only depletes financial resources but also undermines public trust and hampers the effective delivery of services. The COVID-19 pandemic further highlighted these vulnerabilities, exposing issues like conflicts of interest and favoritism that led to inflated prices for essential supplies.

Professional bodies like the Institute of Chartered Accountants in England and Wales (ICAEW) are actively contributing to the fight against procurement fraud. ICAEW emphasizes the importance of robust internal controls and vigilance across organizational boundaries. They advocate for strong anti-fraud strategies, highlighting that investing in such measures is both good business and ethical sense.

OECD Head of Infrastructure and Public Procurement Paulo Magina emphasized that transparency is key to public trust. Simplifying and visualizing procurement data makes it accessible to citizens, allowing them to spot issues and push for reforms. “Open data standards, allowing data reuse, are important,” he noted.