GOVERNMENT OF THE PEOPLE, BY THE PEOPLE, FOR THE PEOPLE, SHALL NOT PERISH FROM THE EARTH
A large percentage of corruption occurring within governments worldwide relates to the procurement of goods and services. Every day, billions of dollars in procurement transactions take place worldwide. It is unfortunate, but not every dollar ends up in the hands or accounts of the intended recipients. In a multitude of instances, these funds are redirected, embezzled, stolen, or just wasted.
Fraud in the area of construction is commonplace and seems to be endemic across Australia, Canada, India, the UK and the US, According to a recent report from Grant Thornton. Construction fraud itself, has amassed a global price tag of approximately $860 billion. It is projected that the annual fraud cost in construction will rise to $1.5 trillion by 2025[1].
The greatest threat of fraud in many organizations comes from within. Far too often, it is given life through employees at all levels, including senior management.
Political figures can also facilitate procurement fraud. One of the most lucrative fraud schemes in the corruption world is that of Bid Rigging. A successful Bid Rigging scheme encompasses a myriad of different types of schemes that, if successful, can be a jumping off point for countless other types of fraud.
Governments worldwide need to acknowledge that it is time to retreat from the daily impotent lip service they give on the topic of corruption, fraud, waste and abuse in society. Leaders must begin to devise concrete plans of action to take hold of this rabid tiger affecting society—not by the tail, to be dragged through the jungle, but around the throat, choking off the air that gives life to the schemes that stifle the growth and success of government programs designed to uplift and sustain the people.
It must be clearly understood that the primary function of government is to procure services for the people. Without procurement, there would be no hospitals, trains, planes, and automobiles.
Without a well-planned and well-executed procurement process, there would be no means to secure the goods and services required to educate the people, defend communities, build roads, bridges, and in the case of the Philadelphia Housing Authority (PHA), provide suitable and affordable housing for the people.
Simply put, without procurement, government would cease to exist. It is a monumental undertaking that all governments take on in support of the people, as well as the development and sustaining of a way of life. Unfortunately, with that endeavor also comes an effort by those who would undermine good government by attempting to achieve a personal benefit by corrupting the established governmental processes, not solely by outside forces, but sadly, also from within.
It Takes a Fighting Force
To prevent this unethical and illegal behavior, governments have, or are in the process of creating, organizations with the primary function to identify and eliminate corruption, fraud, waste and abuse. One such organization exists in the City of Philadelphia- the Philadelphia Housing Authority’s Office of Audit and Compliance (OAC).
There is a simple, but clear, message conveyed by the existence of OAC. The message is that those exploring the possibility of engaging in corruption must recognize that the OAC is the manifestation of the PHA’s clarion call that “Enough is Enough!” The line has been drawn by the leaders of OAC. Let it be known that ne’er-do-wells and lawbreakers cross that line at their own risk.
The PHA has the right to expect the untrammeled benefits of free and open competition, i.e., the best goods and services at the lowest prices. In PHA’s attempt to achieve this objective, it often relies on, a well-established, competitive bidding process.
It is critical to understand that the competitive process only works when participants set prices honestly and independently. Conversely, when competitors collude to compromise competition, prices are inflated, and the PHA is harmed. If the PHA is harmed, then the people of Philadelphia are harmed even more.
On an annual basis, the PHA spends millions of dollars to push forward on achieving the goals that it has formulated to improve the lives of those residing in PHA developments. This is not just about the tangible accomplishments that come with repairing or upgrading apartments and the developments overall. It also includes educating the contracting force that has been given the privilege of working with the PHA to meet the needs of the people. Too often, these organizations are reluctant and sometimes unwilling to comply with the rules and regulations that come with being a part of the PHA program.
G-Square Consulting Services LLC has prepared this publication for the expressed benefit of the OAC investigative effort in combating Bid-rigging. It gives notice to those who dare to try to compromise the government fisc that they are coming up against a formidable force. A force committed to standing in the gap between those unethical parasites that prey upon the good works of government and those relentless warriors resolved to work for the good of the people. That formidable force comes in the form of the members of the OAC. The OAC is committed to ensuring that no fiscal harm shall befall the Authority while it goes about its mission of providing affordable housing to the citizens of Philadelphia.
OAC Standing in the Gap
In the State of Pennsylvania, Bid-rigging is a violation of the AntiBid-rigging Statute. It is also a violation of the United States federal law known as the Sherman Antitrust Act. Many countries have similar antitrust-type statutes in their law books. The fact that such laws exist worldwide, unfortunately, speaks to the fixed presence of corruption in our lives. The existence of such laws also tells us that societies are staunch believers that corruption can and will be corralled
Bid-rigging is a scheme that has the potential to generate significant harm to the PHA budget and to compromise the procurement process in ways that result in increased contract cost through larceny. It is an incestuous scheme, usually requiring close relationships among the members.
Because of its incestuous nature, it is difficult to gain the cooperation of Bid-rigging participants and prove the crime. Collusion among competitors in a bid-rigging scheme is a violation of the US federal mail or wire fraud statutes, false statements statute, and other federal felony statutes. While it is a certainty that the PHA has been a victim of Bid-rigging schemes in the past, it is just as certain that a well-trained and staffed OAC will be a fighting force that brings Bid-rigging to its knees.
[1] Construction Fraud Costs an Estimated $860 Billion- http://www.natlawreview.com/article/construction-fraud-costs-estimated-860-billion (accessed August 8, 2014).
Fraud in the area of construction is commonplace and seems to be endemic across Australia, Canada, India, the UK and the US, According to a recent report from Grant Thornton. Construction fraud itself, has amassed a global price tag of approximately $860 billion. It is projected that the annual fraud cost in construction will rise to $1.5 trillion by 2025[1].
The greatest threat of fraud in many organizations comes from within. Far too often, it is given life through employees at all levels, including senior management.
Political figures can also facilitate procurement fraud. One of the most lucrative fraud schemes in the corruption world is that of Bid Rigging. A successful Bid Rigging scheme encompasses a myriad of different types of schemes that, if successful, can be a jumping off point for countless other types of fraud.
Governments worldwide need to acknowledge that it is time to retreat from the daily impotent lip service they give on the topic of corruption, fraud, waste and abuse in society. Leaders must begin to devise concrete plans of action to take hold of this rabid tiger affecting society—not by the tail, to be dragged through the jungle, but around the throat, choking off the air that gives life to the schemes that stifle the growth and success of government programs designed to uplift and sustain the people.
It must be clearly understood that the primary function of government is to procure services for the people. Without procurement, there would be no hospitals, trains, planes, and automobiles.
Without a well-planned and well-executed procurement process, there would be no means to secure the goods and services required to educate the people, defend communities, build roads, bridges, and in the case of the Philadelphia Housing Authority (PHA), provide suitable and affordable housing for the people.
Simply put, without procurement, government would cease to exist. It is a monumental undertaking that all governments take on in support of the people, as well as the development and sustaining of a way of life. Unfortunately, with that endeavor also comes an effort by those who would undermine good government by attempting to achieve a personal benefit by corrupting the established governmental processes, not solely by outside forces, but sadly, also from within.
It Takes a Fighting Force
To prevent this unethical and illegal behavior, governments have, or are in the process of creating, organizations with the primary function to identify and eliminate corruption, fraud, waste and abuse. One such organization exists in the City of Philadelphia- the Philadelphia Housing Authority’s Office of Audit and Compliance (OAC).
There is a simple, but clear, message conveyed by the existence of OAC. The message is that those exploring the possibility of engaging in corruption must recognize that the OAC is the manifestation of the PHA’s clarion call that “Enough is Enough!” The line has been drawn by the leaders of OAC. Let it be known that ne’er-do-wells and lawbreakers cross that line at their own risk.
The PHA has the right to expect the untrammeled benefits of free and open competition, i.e., the best goods and services at the lowest prices. In PHA’s attempt to achieve this objective, it often relies on, a well-established, competitive bidding process.
It is critical to understand that the competitive process only works when participants set prices honestly and independently. Conversely, when competitors collude to compromise competition, prices are inflated, and the PHA is harmed. If the PHA is harmed, then the people of Philadelphia are harmed even more.
On an annual basis, the PHA spends millions of dollars to push forward on achieving the goals that it has formulated to improve the lives of those residing in PHA developments. This is not just about the tangible accomplishments that come with repairing or upgrading apartments and the developments overall. It also includes educating the contracting force that has been given the privilege of working with the PHA to meet the needs of the people. Too often, these organizations are reluctant and sometimes unwilling to comply with the rules and regulations that come with being a part of the PHA program.
G-Square Consulting Services LLC has prepared this publication for the expressed benefit of the OAC investigative effort in combating Bid-rigging. It gives notice to those who dare to try to compromise the government fisc that they are coming up against a formidable force. A force committed to standing in the gap between those unethical parasites that prey upon the good works of government and those relentless warriors resolved to work for the good of the people. That formidable force comes in the form of the members of the OAC. The OAC is committed to ensuring that no fiscal harm shall befall the Authority while it goes about its mission of providing affordable housing to the citizens of Philadelphia.
OAC Standing in the Gap
In the State of Pennsylvania, Bid-rigging is a violation of the AntiBid-rigging Statute. It is also a violation of the United States federal law known as the Sherman Antitrust Act. Many countries have similar antitrust-type statutes in their law books. The fact that such laws exist worldwide, unfortunately, speaks to the fixed presence of corruption in our lives. The existence of such laws also tells us that societies are staunch believers that corruption can and will be corralled
Bid-rigging is a scheme that has the potential to generate significant harm to the PHA budget and to compromise the procurement process in ways that result in increased contract cost through larceny. It is an incestuous scheme, usually requiring close relationships among the members.
Because of its incestuous nature, it is difficult to gain the cooperation of Bid-rigging participants and prove the crime. Collusion among competitors in a bid-rigging scheme is a violation of the US federal mail or wire fraud statutes, false statements statute, and other federal felony statutes. While it is a certainty that the PHA has been a victim of Bid-rigging schemes in the past, it is just as certain that a well-trained and staffed OAC will be a fighting force that brings Bid-rigging to its knees.
[1] Construction Fraud Costs an Estimated $860 Billion- http://www.natlawreview.com/article/construction-fraud-costs-estimated-860-billion (accessed August 8, 2014).