Choosing reliable supplier vital
Research by Managed Integrity Evaluation (MIE) indicates that procurement fraud is the third most reported crime in South Africa.
The organisation has highlighted that public and private organisations are forced to recheck their procurement practices and demand for comprehensive supplier vetting, as well as rising public awareness on anti-bribery and corruption.
Michelle Baron-Williamson, executive of MIE, said implementation of comprehensive supplier vetting would be critical curbing fraud, indicating the system was seeing steady growth in South Africa.
“The demand is increasing in the number of requests for supplier vetting checks in its 2017 Business Screening Index (BSI) report – compared to data from 2016,” stated Baron-Williamson.
“Just as having good and trustworthy suppliers is vital to a business’ daily and future operations, legislation around anti-bribery, fraud and corruption continue to evolve.
“Therefore, it is becoming more crucial for public and private organisations to be more proactive and vigilant in managing compliance in their procurement and supply chains through supplier vetting.
“Whether it’s a business or a government department, legislation and regulation in South Africa continues to place importance on shared accountability in managing governance first, and performance second.
“This frame of thinking is also being applied to client-supplier relationships.
“Especially as government looks to use its own procurement practices and those stipulated in the B-BBEE codes to drive fair employment and opportunities in procurement supply chains in the country.”
According to Baron-Williamson, comprehensive background checks can provide invaluable insights as part of the procurement process.
“Vetting should therefore apply to all partners, suppliers and vendors with whom an organisation does business. Added to this, the act of vetting suppliers – and their relationships with employees – must be conducted regularly, so that any irregularities can be picked up on early and for added assurance.
“Navigating the legal obligations and requirements for supplier vetting should not be complex.
“Organisations should therefore look to partner with a reputable service provider – one who is able to offer quality, comprehensive and cost-effective supplier vetting solutions and services that are underpinned by expert guidance and consultations.”