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ALRAQABA . ISSUE 15
can win the contract based on the specifications stated, and the total price required. Moreover,
bidders aim to provide the specifications required by the entity at the lowest price possible to win
the contract.
Procurement Processes:
The procurement process goes through four different stages:
The procurement through competitive bidding is subject to fraud, which could occur in any of these
phases. Fraud means wrongful or criminal deception intended to result in financial or personal
gain. the reasons behind individual’s decision to commit fraud is explained in the fraud triangle
framework. There are three components
in the triangle that increase the risk of fraud which are:
opportunity, pressure or motivation, and rationalization.
The
pre-solicitation
phase
Opportunity
Ability to carry out
misappropriation of cash
or organizational assets.
The
solicitation
phase
The bid
evaluation and
award phase
The post-award
and administration
phase
THE
FRAUD
TRIANGLE
Rationalization
Justification of dishonest
actions.
Pressure
Motivation or incentive
to commit fraud.
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