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Distinctions of fraudulent schemes in public procurement

Dadalko V.A. Financial University under Government of Russian Federation, Moscow, Russian Federation ( antikrizis1@bk.ru )

Krivchenkova E.V. Financial University under Government of Russian Federation, Moscow, Russian Federation ( krichenkova5@mail.ru )

Journal: National Interests: Priorities and Security, #2, 2019

Subject The research investigates the prevailing fraudulent schemes in public procurement and counteraction methods.
Objectives We scrutinize fraud in public procurement, which really challenges the national economic security as the bidding volume grows, which initially pursues the competition and quality of services delivered.
Methods Based on dynamic analysis methods, we examined patterns of fraudulent schemes in public procurement. We also apply the dialectical method to analyze the issue. The research also involves such methods as data collection, classification, comparison and generalization.
Results The analysis allowed to identify the main standard and non-standard schemes of fraud in public procurement. Corporate losses caused by fraud attract much attention. These facts should be taken into consideration when the corporate risk system is formed. The article reviews effective fraud counteraction measures in public procurement.
Conclusions and Relevance Economic crime remains a serious problem for both organizations and the country as a whole. There should be certain measures, at least of a lesser extent, to counteract such criminal doings, during bidding and at the corporate level. If fraud in public procurement is qualified as a separate body of crime, this will have a positive effect on the effective legislation.


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