Investigation of misrepresentation in tender documents

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Authors

Mynhardt, Armand Johann

Issue Date

2011-11

Type

Dissertation

Language

en

Keywords

Financial investigation , Forensic investigation , Procurement fraud , Tender document , Fraud , Fronting practices , Black Economic Empowerment (BEE) , BEE fronting , Misrepresentation , Legislation

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Abstract

Construction companies, in particular, abuse the objectives of BEE in order to secure multimillion-rand contracts. Misrepresentations, specifically to the Department of Public Works, are made in various forms and stages during the submission of tender documentation by contractors. The status of BEE company owners is abused in order to secure contracts. Apartheid in South Africa prevented black citizens from entering the corporate world and thereby attaining a quality education. The South African government has, since 1994, adopted the BEE policy in order to redress racial and economic imbalances of the past. Fronting (which is regarded as fraud) is detrimental to the objectives of BEE, which are governed by legislation. Fronting further negatively affects the transformation of the South African economy which could be globally competitive. Fraud detection and its investigation are two concepts which are closely linked to each other and are vitally important to any fraud investi-gator.

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Mynhardt, Armand Johann (2011) Investigation of misrepresentation in tender documents, University of South Africa, Pretoria, <http://hdl.handle.net/10500/5495>

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