Government Procurement Fraud
NOTE: Labels in bold are required.
Construction and Procurement Fraud
As you can imagine, state and federal governments spend a large part of their budgets for a variety of infrastructural projects that require construction projects that can range from the building of highways to government office buildings.
Some common types of fraud involving government construction contracts include:
- Collusion between parties to ensure that one company is hired. This is also known as “bid-rigging.”
- Falsely identifying employees as members of a minority to receive preferential treatment.
- Bribing public officials to ensure a contract is awarded to the company.
- Paying kickbacks to public officials or others to ensure a contract is awarded.
- Overcharging for the products and/or services related to the contract.
- Use of substandard materials or workmanship related to the contract.
- Submitting false information and/or documents to the government regarding the progress of the construction.
The government is also required to procure vast amounts of materials and products for day-to-day use by various agencies and employees. These items are usually purchased by way of contracts with private business owners and are another area in which the government has been defrauded. Some methods by which the government has been defrauded in this area include bid rigging, overcharging for the goods purchased and providing used goods while classifying them as new.