Abstract South African media publications frequently report on procurement fraud committed in Africa and South Africa—a matter which has evolved into a significant issue. Procurement fraud is committed in all the phases of the procurement cycle, but in this research, it is revealed that the unlawful act occurs mostly during the bidding or tender phase. Procurement fraud is not seen as a crime by business and this illicit act is thus committed because of ignorance in respect of the misrepresentation of information, and the red flag indicators of these misrepresentations. This article analyses the kinds of misrepresentation that takes place during the tender phase and highlights the importance of red flags in detecting procurement fraud, especially during the tender phase of the cycle. The identification of red flags was studied in order to comprehend the role that such identification plays in detecting and preventing procurement fraud in the tender phase. We also highlight the scope of the misrepresentation of facts in committing procurement fraud. A proper exploration and understanding of red flag indicators for the detection of procurement fraud during the tender phase will be to the advantage of the criminal investigation fraternity as well as the private industry.

中文翻译：

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红旗系统作为投标欺诈预防和虚假陈述检测的守门人

摘要 南非媒体出版物经常报道在非洲和南非发生的采购欺诈——这一问题已演变为一个重大问题。采购舞弊发生在采购周期的各个阶段，但本研究发现，不法行为主要发生在招投标阶段。采购欺诈不被企业视为犯罪，因此这种非法行为是由于对信息的虚假陈述以及这些虚假陈述的危险信号的无知而犯下的。本文分析了招标阶段发生的各种虚假陈述，并强调了危险信号在检测采购欺诈方面的重要性，尤其是在招标阶段。对危险信号的识别进行了研究，以了解这种识别在招标阶段检测和预防采购欺诈方面所起的作用。我们还强调了在实施采购欺诈时歪曲事实的范围。在招标阶段适当探索和理解用于检测采购欺诈的危险信号指标将有利于刑事调查兄弟会和私营行业。