Safeguarding Against Fraudulent Calls: Protecting Your Business During Tender Phases

An increasingly important issue facing the industry is one of fraudulent calls made to tenderers during the bid adjudication phase of a project with the intention of soliciting bribes in exchange for contract awards. These practices are deceptive and in most instances are fraudulent and made by persons who are not who they claim to be.

Entertaining bribery or corruption in any way or form is strongly condemned, however, the purpose of this article is to address issues relating to fraudulent calls with the aim of soliciting bribes during the tender phase of a project.

In order to combat such fraudulent activities effectively, it is imperative to implement robust strategies and protocols. Enclosed below are some guidelines for effectively addressing this issue:

1. Establish clear communication channels.

• Define official communication channels for the tender process, such as designated email addresses or phone numbers and only utilise these official communication channels.
• Inform employees about the authorised channels for communication and explicitly state that any deviation should be treated with suspicion.

2. Verify the caller's identity.

• Request detailed information from the caller, including their name, position and contact details.
• Cross-verify the caller's credentials with the organisation's database or through independent means.
• Be wary of callers who refuse to provide verifiable information or who insist on secrecy.

3. Exercise caution with sensitive information.

• Refrain from disclosing sensitive information, such as bid details, pricing strategies or proprietary data over the phone.
• If the caller insists on obtaining confidential information, advise them to follow the established communication protocols or escalate the matter to authorised personnel.

4. Document the interaction.

• Take thorough notes during the call, including the caller's statements, requests made and any suspicious or coercive tactics employed.
• Record the date, time and duration of the call for future reference and investigation purposes.
• Preserve any electronic or physical evidence, such as voicemails or call recordings as potential proof of fraudulent activity.

5. Report suspicious calls immediately.

• Notify the appropriate authorities, including the organisation or department inviting tender submissions, about any fraudulent calls or solicitation attempts.
• Provide the department or organisation with detailed information, including the caller's identity (if known), phone number and a summary of the conversation.
• Cooperate fully with any investigations to combat fraudulent practices.

6. Strengthen internal controls.

• Conduct regular training sessions to educate employees about common fraud schemes and tactics used during tender phases.
• Implement strict approval processes for financial transactions or disbursements to prevent unauthorised payments.
• Foster a culture of transparency and accountability within the organisation to discourage unethical behaviour and promote integrity.

Conclusion

These fraudulent phone calls pose a threat to businesses, jeopardising their reputation, financial stability and ethical integrity. Strengthening internal controls will allow businesses to effectively safeguard themselves against these risks.

Bilaal Dawood

Head: Membership Services