September 26, 2016
Preferential selection of contractor
This can be facilitated through a number of channels. One of the most common pathways is a kickback. This is where an official artificially increases the payment due to a supplier, who is then able to refund the money to the personal account of the official. This can be carried out indirectly such as if the supplier refunds the amount to the official as a holiday package.
A supplier may also pay an official to receive confidential information about competitors, allowing it to tailor its bid unfairly so as to win the contract.
Like other types of corruption, an official may determine the winner of a tender based on personal connections. A local procurement official may hire friends and family to complete a construction project.
As a result of selecting the winner of a tender for inappropriate reasons, the price may be artificially high, wasting finite healthcare funds; or it may compromise the delivery of the products/services as the winner may not actually have experience working on such a contract.