PwC’s survey statistics highlight gaps in how organisations manage and address fraud risks. Credit: Drozd Irina/Shutterstock.

The Institute of Chartered Accountants in England and Wales (ICAEW) has announced plans to contribute to the fight against procurement fraud, which impacts the global economy, costing around £2trn ($2.51trn) annually.  

According to PwC’s Global Economic Crime and Fraud Survey, procurement fraud is one of the most prevalent forms of economic crime, with 30% of organisations falling victim over the past two years. 

Despite the widespread issue, only 46% of organisations conducted investigations into detected frauds, while 37% reported these incidents to law enforcement.  

These statistics highlight gaps in how organisations manage and address fraud risks.  

The PwC survey also revealed that 57% of procurement fraud cases involved collusion between internal and external parties. 

Many organisations remain unprepared, with 55% of respondents indicating a lack of a dedicated anti-fraud programme.  

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The upcoming Procurement Act, set for February 2025, aims to enhance transparency, streamline processes and ensure fair competition, mitigating corruption risks in procurement.  

ICAEW Trust and Ethics interim director Gareth Brett said: “Corruption creates perverse incentives that encourage society’s best and brightest minds to manipulate the system for personal gain.” 

Amid these challenges, the ICAEW has announced plans to hold a special round table on Anti-Corruption and Procurement Integrity in December 2024 to address corruption. 

This year’s theme is Uniting with Youth Against Corruption: Shaping Tomorrow’s Integrity. 

The event will gather academics, legal professionals and public sector representatives to develop actionable strategies to combat corruption. 

The discussions will address emerging risks in procurement fraud, effective strategies under the new Procurement Act, and fostering transparency and accountability.  

Conducted under the Chatham House Rule, these discussions aim to encourage open dialogue and result in actionable outcomes.  

The resulting best practice guidance will provide practical steps for facing procurement risks and setting anti-corruption measures. 

Last month, the ICAEW announced an overhaul of its Associate Chartered Accountant qualification.