Comprehensive and Detailed Explanation From Exact Extract of Documents:

Fraud risks in procurement typically include practices such as bid rigging (collusion to manipulate

tenders), phantom suppliers (fake companies created to siphon money), and deliberate duplicate

payments (processing false or repeated invoices). However, accepting presents is classified as

bribery, not fraud. The L5M5 study guide (old p.139, new p.50) explains that fraud involves

intentional deception for personal gain, while bribery relates to improper inducements or gifts.

Procurement professionals must distinguish between fraud and bribery because both undermine

ethical procurement but require different controls. For example, fraud prevention requires audit

trails and segregation of duties, while anti-bribery policies require clear rules on gifts and hospitality.

📖Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, old p.139, new p.50