10th ASOSAI Research
Project – Audit to Detect
Fraud and Corruption :
Evaluation of the Fight
Against Money
Laundering
Country Report –
SAI Philippines
Assessment of the Current
Situation of Corruption
Survey results
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The prevalence of corruption in the country is
serious
Corruption is moderate and widespread among
some public sectors
The pattern is moderately predictable and
equally occurs in the public and private sectors
The prevalence is slightly lower than the previous
years
Survey results
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Sectors most vulnerable to corruption
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Customs
Taxation
Legislature
local government
public service delivery
Agriculture
state-owned enterprise
Judiciary
law enforcement agency
education
Environment
energy
Survey results
 Transactions
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most vulnerable to corruption
procurement contracts
public fund disbursement procedures
revenue collection
licensing
electoral irregularities
Survey results
 most
prevalent type of corruption in the
public sector
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abuse of power
bribery and kickback
Extortion
criminal breach of trust
nepotism
Survey results
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Causes of corruption
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absence, weaknesses or failure in regulation is most likely
the root cause of corruption
Other contributors are:
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complicated and cumbersome administrative
procedures
unclear rules and loopholes for manipulation
low salary levels
culture, customs and habits of giving bribes to get things
done
lack of financial rules and procedures
eyeing to become rich as quick as possible
rapid population coupled with slow economic growth
Survey results
 The
government has taken moderate
steps to curb corruption and efforts are
improving
 Enforcement agencies highly prioritize the
monitoring of the current situation of
corruption including the monitoring of
fraud complaints from the public
 Whistle blowing is an effective avenue to
lodge complaints of corruption
Survey results
 country’s
ranking in Transparency
International’s – Corruption Perception
Index does not fairly reflect the corruption
situation in the country
 On the other hand, the Global Integrity
Index (GII) fairly reflects the country’s real
situation
Evaluation of the Fight
Against Corruption
Anti-corruption strategy
 The
Anti-corruption strategies in the
Philippines are embodied in Anticorruption Laws and Specific laws, courts,
and prosecutors dedicated to
government anti-corruption
Anti-corruption strategies

These are publicized documents that
contain chapters on prevention and
criminalization/law enforcement
measures
Contents of anti-corruption
strategy
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specific measures for each objective
specific institutions responsible for the
implementation of each measure
time-frame for implementation
criteria for assessing implementation
budget specifically allocated for the
implementation of the action
institution responsible for co-ordination,
implementation and reporting on the action
plan
Presence of anti-corruption
agencies
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Office of the Ombudsman
Department of Justice
National Bureau of Investigation
Philippine National Police
Civil Service Commission
Commission on Audit
Anti-Money Laundering Commission
Bureau of Internal Revenue
Securities and Exchange Commission
Significant functions of the
anti-corruption agencies
conduct investigations and provide a
comprehensive analysis of the local situation
with a solid understanding of the underlying
causes of corruption
 periodically re-evaluate bodies/areas/
activities which have high risks of corruption
 establish and maintain a hotline in order to
facilitate the reporting by the citizens of
corruption complaints

Legal framework on Anticorruption
 The
Omnibus Election Code governs the
financing of political parties
 There are laws and regulations governing
code of ethics of public officials as well as
those governing declaration of assets by
public officials.
 There are “accounting and auditing
standards” for both public and private
sectors
Legal framework on anticorruption
 These
laws and regulations increase the
confidence and credibility of the
country’s commitment in combating
corruption specially when properly
implemented and the crackdown on
corrupt practices are exposed to the
public.
Need for new legislation
 Although
the Philippines criminalizes
different types of corrupted activities by
special laws on Anti-Corruption, new
legislation focusing on “abuse of
position/power and influence peddling”
should be enacted to better prevent and
detect the relevant cases of corruption.
Role of media in anticorruption
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Media plays a great role in fighting corruption
and to some extent it has helped public
recognize the real situation of corruption,
however the provided information are
sometimes inaccurate or not objective.
The oversight role of non-state actors such as
the media through responsible journalism
should be strengthened for increased
transparency, greater participation and
involvement in anti-corruption activities.
Role of societies in anticorruption
 Socio-political
organizations and socioprofessional organizations have actively
participated but not effectively in anticorruption campaigns
Citizens participation in anticorruption
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The Philippines values citizen participation in
fighting corruption in terms of promoting
public sector transparency and
accountability and citizen participation.
It has helped in unearthing irregularities and
unlawful activities committed by many toplevel officials.
Citizen participation should include an
expanded anti-corruption portfolio with more
programs which specifically target the
everyday corruption and educate the
population about the ill effects of corruption.
International Cooperation
 The
country has ratified the United Nations
Convention against Corruption (UNCAC)
and its peer review process has already
begun
 Mutual legal assistance with other
countries is moderately successful
Evaluation on the
Role of Audit to Detect
Fraud and Corruption
Organizational structure
 The
organizational structure of SAI
Philippines is Board or Collegiate model
where the audit board is composed of an
audit commission which functions as the
decision making body
Chairperson and members
of the Commission
They
have a fixed term under
the Constitution or law
Independence/relationship of
SAI with the other branches of
the government
 SAI
Philippines is independent of the executive,
legislative and judicial departments of the
state
Fiscal autonomy or financial
independence
 SAI
Philippines’ budget is subject to
automatic release but undergoes the
scrutiny of the Department of Budget and
Congress and the proposed budget
could be increase or decrease
Entities over which SAI has
legal mandate and authority
to audit
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Central or national government agencies,
bureaus, offices, instrumentalities and local
government units at all levels
State-owned and controlled corporations,
universities, colleges and enterprises
Privately-owned public utilities company, but
limited to rate and franchise audit
Private entities and non-governmental
organizations receiving loans, subsidy or
grants from the state
Types of services COA renders
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Fraud/Forensic Audit
Performance Audit
Compliance Audit/Regularity Audit
Financial Audit
Value for Money Audit
Rate Audit
Franchise Audit
Specific articles of Constitution, Law or
Regulation about the roles and responsibilities
of COA on anti-corruption
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Under Philippines Constitution, COA has exclusive authority to
define the scope of its audit and examination, establish the
techniques and methods required therefor, and promulgate
accounting and auditing rules and regulations, including
those for the prevention and disallowance of irregular,
unnecessary, excessive, extravagant, or unconscionable
expenditures, or uses of government funds and properties.
(Article IX-D, 1987 Philippine Constitution)
Upon discovery in audit of a shortage in the accounts of any
accountable officer and upon finding of a prima facie case
of malversation of public funds or property, the COA may
place under constructive distraint personal property of
accountable officer who is obligated to preserve the property
intact and unaltered and not to dispose the same in any
manner. (Section 47, Presidential Decree No. 1445)
Specific articles of Constitution, Law or
Regulation about the roles and responsibilities
of COA on anti-corruption
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The auditor may seize the office of the local treasurer
when the cash examination discloses a shortage in cash
(Section 46, PD 1445)
The COA has investigatory and inquisitorial powers; and
power to punish for contempt. The Chairman or any
officer authorized by the former in writing shall have the
power to summon parties, issue subpoena duces tecum
and ad testificandum, and take testimony in any
investigation or inquiry within the jurisdiction of COA.
(Section 40, PD 1445)
“Anti-corruption strategy” implemented
in accordance with the national anticorruption strategy
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Involvement of citizens in the audit process through the
Citizens Participatory Audit Program.
Permanent representation in the Inter-agency Anti-Graft
and Corruption Coordinating Council which studies
policy issues against graft and corruption.
Permanent representation in the Internal Working Group
on the 21 Point Agenda of the United Nations
Convention on Anti-Corruption for 2013-2018.
Systematic coordination with the Office of the
Ombudsman, Department of Justice and National
Bureau of Investigation on prosecution of cases as a
result of fraud/special audits.
Strategic goals and action concerning
fight against corruption
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Adoption of Risk Based Audit Approach and
Unified Audit System to capture high risk accounts,
projects, programs and activities.
Unified instruction to audit units to focus on
transactions, programs, projects and activities
which implementation were found to be irregular
during special/fraud audits and agency risks
assessment.
Validation of corruption complaints in whatever
form.
Conduct of fraud audit on high profile cases of
complaints of corruption when warranted by initial
evidence
Detecting corruption
 It
is an audit focus of the audit
services being rendered by SAI
Philippines
Special offices assigned specific functions
and/or powers in the prevention, detection
and investigation of corrupt activities and
transactions
Fraud Audit Office
• Special Audits Office
 Note: The SAO have been in place for more
than 20 years.
•
Number of audit personnel that have specific
skills in the detection of corrupt activities and
transactions in the government
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Very few personnel have adequate special
training in combating corruption when
compared with the number of corruption
complaints being received
Trainings to auditors about anticorruption or anti-fraud
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Corruption Detection and Investigation
Certified Fraud Examination
Fiscal Accountability of Public Officials
Risk Based Audit
Forensic Accounting
Fraud Audit and Legal Evidence
other special trainings on fraud
investigation offered by partner agencies
Specific manual or guideline on
anti-corruption or anti-fraud
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Integrated Risk Based Audit Manual
Fraud Audit Manual
Certified Fraud Examination Manual
Manual on Fraud Investigation and Legal
Evidence
Approaches in detecting corrupt
activities and transactions in the
government
 Both
proactive and reactive
The available courses of action upon
discovery of red flags or symptoms of
corruption
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The red flags will be referred to the special
department, office or unit of the SAI for the conduct
of a full blown investigation
The red flags will be referred by the SAI to the anticorruption agency for the conduct of a full blown
investigation
Available facilities or mechanism to promote
and intensify prevention and detection of
corrupt activities and transactions
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Hotline devoted solely to corruption complaints
Corruption alert section in the SAI website
Citizens help desk that caters corruption complaints in whatever
form
Anti-corruption researches
Anti-corruption educational/training programs
Citizens Participatory Audit Program
Promulgation of accounting and auditing rules and regulations
Declaration of assets and liabilities of public officials
Updated publication of audit reports through the SAI’s website
Legal assistance to auditors only
Types of corruption detected by audit
through sufficient mandate, tools and
techniques Of SAI
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Conflict of Interest
Asset misappropriation
Fraud
Embezzlement
Nepotism
All types of Illegal activities in public
procurement procedures
Audit services which are most instrumental in the
detection and prevention of corruption in the
Philippines
(Ranked)
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Fraud/Forensic Audit
Compliance/Regulatory Audit
Financial Audit
Performance Audit
Value-for-Money Audit
Audit tools and techniques use to detect corrupt
activities and transactions in the government
(In order of effectiveness)
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Third Party Confirmation
Observation and Technical Inspection
Review of procurement process
Substantive testing of disbursement vouchers and
supporting documents
Surprise cash examination
Network Analysis/Data Analytics
Most high profile corruption
case uncovered
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The audit of the Priority Assistance Fund and the
Malampaya Funds were the most high profile
cases as it involves billions of pesos. The
implementing government agencies which were
supposed to implement the programs, projects
and activities contracted out the same to the
Non-Governmental Organizations (NGOs) which
turned out to be fictitious entities. The projects
either turned out to be ghost projects or
implemented with substantial deficiencies or
deviations from work program and purpose of
appropriation of funds.
The best audit practices that led to the
detection of the most high profile corruption
case
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Network Analysis
Whistle blowing
Confirmation with third parties and regulatory agencies
Observation/Technical Inspection
Analysis of legality of funds sources and tracing where the
money has gone
Validation of the legal existence of NGOs and suppliers,
actual receipt of goods and services by intended
beneficiaries
Substantive testing of disbursement vouchers and supporting
documents
Analysis of contracts, agreements, work financial plan, etc
Reports issued
 Our
SAI issues a special audit report specifying the
audited corrupt activities and transactions, the
pecuniary loss suffered by the government, the
persons responsible/liable and the laws and rules
violated.
Parties where COA submits the audit report
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Entity’s management
Legislative body
Executive body
Law Enforcement Agency
Legal actions that COA can initiate against
the perpetrators of corrupt activities and
transactions
 Our
SAI may recommend to the Ombudsman the
criminal prosecution as well as imposition of
administrative sanctions against the persons
involved in the corrupt transactions. With regard to
the civil liability, our SAI issues a Notice of
Disallowance directing the persons liable to
return/restitute the public funds irregularly/illegally
disbursed but still subject to appeals process.
Mechanism to ensure that the audit findings and
recommendations are properly acted upon by the
concerned body
 Our
SAI’s role is purely recommendatory in nature
ASSESSMENT OF SAI’s
PERFORMANCE AND
INTEGRITY IN THE
PREVENTION AND
DETECTION OF CORRUPTION
Field of the anti-corruption efforts
COA contributes best
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Preventive actions by providing
recommendations to improve entity’s
anti-corruption and internal control system
and sharing best practices and
benchmarking information to assist
decision-makers
Detective actions through the conduct of
fraud/forensic audits and timely reporting
of the audit results to the Prosecution
Department
Performance rating of COA in
combating corruption
 Good:
Criminal cases have been filed
against high ranking/top public officials.
Fiscal and public accountability equally
apply to all government employees
regardless of rank.
Method used by SAI to obtain objective
information about the effectiveness of its
anti-corruption policy and performance
 Third-party
satisfaction surveys
Implementation of a self-integrity
assessment such as the “IntoSAINT
Methodology” mentioned in the exposure
draft of ISSAI 570
 Philippines
has not implemented this selfintegrity assessment.
AUDIT LIMITATIONS IN
THE PREVENTION AND
DETECTION OF
CORRUPTION
Types of controls which do not have a
sufficient level of maturity to ensure the
integrity and competence of your SAI in the
field of anti-corruption
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Organizational culture
SAI legal framework
Vulnerability / risk analysis
Necessary changes in the legal framework and
organizational structure to better address growing
demand for anti-corruption activities
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To be insulated from political pressure and influences, our
Commissioner’s should not be subjected to confirmation by
the Commission on Appointments which are composed of
legislators. Our budget must be based on a fixed percentage
of the national budget without undergoing the political
budget review process of Congress and the executive
department.
Our SAI should be empowered to look into bank deposits of
individuals if there are evidence of their involvement in corrupt
activities. Our SAI should be given the power to execute final
and executor Notices of Disallowances/Charges through levy
of properties and garnishment of bank accounts. There must
be a shift of national strategy from financial audit to regularity
or compliance audit.
Factors which hamper SAI’s role in
the fight against corruption
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Corrupt people are not severely
punished
Collusion between law enforcers
and corrupt people
Fear of retaliation and victimization
Lack of competent and
experienced staff to handle
corruption cases
Guaranteed rights to those
conducting fraud/forensic audits
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Legal and financial assistance to auditors
acting as witnesses in a corruption case
Power to issue compulsory processes to
command submission of required documents
Access to government offices’ accounting
records, financial statements, contracts and
other legal instruments
Investigatory and inquisitorial powers such as
power to punish for contempt
COOPERATION AMONG SAIs
AND ANTI-CORRUPTION
AGENCIES
Cooperation of SAI with foreign
counterparts in fighting corruption
 United
Nations Convention on AntiCorruption
Legal instruments that provides for a joint
undertaking among your SAI and anti-corruption
agencies relative to the prevention, detection,
reporting and prosecution of corrupt activities in
the government
 The
Presidential issuance creating the Inter-agency
Anti-Graft and Corruption Coordinating Council
composed of our SAI, the Office of the
Ombudsman, Civil Service Commission, National
Bureau of Investigation, Anti-Money Laundering
Council, Department of Finance and Department
of Budget and Management
Anti-corruption coordination
between SAI and international
organizations

In 2012, the Philippine Government entered into an
agreement with the International Bank for Reconstruction
and Development of the World Bank for a grant aimed at
further improving the effectiveness and efficiency of COA
audit capabilities in financial, compliance, procurement,
value-for-money and fraud audits through the
development and adoption of a results-based integrated
audit methodology using the Integrated Results and Riskbased Audit (IRRBA), The IRRBA and the Forensic Audit
Manuals were developed as the primary guides of the
audit sectors for the conducts of an integrated audit of
agencies. The manuals contain the concepts, related
International Standards of Auditing (ISAs) and International
Standards of Audit for Supreme Audit Institutions (ISSAIs),
relevant procedures, and documentation structure for the
delivery of an integrated audit to auditees using the IRRBA.
Anti-corruption coordination
between
SAI and international organizations

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Integrity for Investments Initiative (i3) - one of the USAID projects
under the Partnership for Growth (PFG), a White House signature
initiative that elevates bilateral engagement between the
Government of the Philippines and the US Government to address
the most serious constraints to economic growth and development
in the Philippines. I3 will contribute to inclusive growth by reducing
the costs of corruption to investments and trade, thereby
promoting open and fair competition. The 5-year project
commenced on 20 February 2013, with $14.7 million total estimated
cost.
The project will work with anticorruption offices, primarily the Office
of the Ombudsman (OMB), Commission on Audit (COA), Civil
Service Commission (CSC), Securities and Exchange Commission
(SEC), and the Governance Commission for Government-Owned
and Controlled Corporations (GOCCs).
Anti-corruption coordination
between
SAI and international organizations


The Philippines–Australia Public Financial
Management Program (PFMP) is a long term
partnership between the Governments of Australia
and the Philippines to improve the efficiency,
accountability and transparency of public fund use
in the Philippines.
The PFMP is assisting the Philippines Government to
implement its Philippine PFM Reform Roadmap:
Towards Improved Accountability and Transparency,
2011–2015. This comprehensive PFM reform agenda
aims to clarify, simplify, improve and harmonize the
financial management processes and information
systems of the civil service in the Philippines.
Improving anti-corruption
measures
at national level


The Commission on Audit (COA), together with the Australian
Government, launched the Disaster Risk Reduction and
Management (DRRM) Accounting and Reporting Guidelines aim to
further improve transparency and accountability in the use of
disaster funds. “Benchmarked against the International Standards
for Supreme Audit Institutions, these will ensure that all disasterrelated funds and donations are properly accounted for and
efficiently utilized. With the recent typhoons and other calamities,
the Philippine government was faced with the challenge of
protecting disaster aid funds without impeding response time and
recovery assistance. In the case of Typhoon Yolanda (Haiyan), the
public clamored for transparency on the use of government funds
and other contributions from local and international donors.
The use of the Disaster Accounting Guidelines will make the Filipino
people confident on how disaster funds are allocated, utilized, and
accounted for.
Improving anti-corruption
measures
at national level


The USAID-funded Philippines Integrity Project focuses on
current successful anti-corruption initiatives while also
establishing new initiatives to improve integrity within
government agencies. It builds on work done from 2006 to
2009 by Management System International on the
Millennium Challenge Account-Philippines Threshold
Program Technical Assistance Project.
More specifically, the Project has four components. MSI will
assist the Office of the Ombudsman (OMB) in reengineering
its business process in order to build better case records
and information management capabilities and to improve
capacity to use the Information Technology physical
infrastructure now in place.
Improving anti-corruption
measures
at national level
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
MSI will also put in place a system to manage judicial
court case evidence to support more successful
prosecutions at all levels.
MSI will work with the OMB and the Department of
Justice (DOJ) to build an effective system for
successful prosecution of lower court corruption
cases. MSI will support completion and maintenance
of an accurate database of cases to use as a tool
for sound caseload management. It will also execute
a Memorandum of Understanding between OMB
and DOJ to support their collaboration on successful,
timely prosecution, and training to make prosecutors
more effective. Through a small grants program, civil
society will conduct a court watch program.
Improving anti-corruption
measures
at national level

Initiatives in the fight against corruption will usually
be most effective if they are carried out by
concerned agencies cooperatively. MSI will
provide specific targeted support for the
strengthening of the cooperation between the
OMB, the Commission on Audit (COA) and the
Civil Service Commission (CSC). Support will focus
on the more effective use of the Statement of
Assets Liabilities and Net Worth and audits in
prosecution of public officials for graft and
corruption through joint training of auditors,
investigators and prosecutors.
Improving anti-corruption
measures
at national level



Improvement of legal regulation in financial area –
RA 9160, the Anti-Money Laundering Act of 2001 amended on 5 March 2003
(RA 9194). RA 9160 criminalized money laundering in the Philippines and, at
the same time, introduced civil forfeiture as an appropriate remedy for the
seizure and forfeiture in favour of the State, without the necessity of conviction
or prosecution in a criminal case, of monetary instrument, property or
proceeds involved in or related to an unlawful activity or money laundering
offense as defined in the law. RA 9160 likewise created the Philippines
Financial Intelligence Unit (FIU), the Anti-Money Laundering Council (AMLC)
The COA is a principal of the Reform Program, along with the DBM, DOF and
BTR. The PFM Reform Program of the government under the leadership of
President Benigno Aquino III seeks to improve “efficiency, transparency and
accountability in public fund use. Executive Order No. 55 signed on
September 16, 2011 empowers the PFM Committee to implement the PFM
Reform Roadmap,, an all-inclusive plan that will clarify, simplify, improve and
harmonize the government’s financial management processes and
information systems.
Development of anticorruption standards for public
servants
 Integrity
Development Review (IDR). The
IDR, which involves a systematic and
comprehensive review of systems and
procedures to determine corruption
vulnerabilities and integrity safeguards,
has been implemented since 2004.
Agencies are required to craft action
plans to address their agency
vulnerabilities.
Development of anticorruption standards for public
servants

Moral Renewal Action Program (MRAP).
Administrative Order 255 was issued on January 30,
2009 directing the government agencies to set up
Moral Renewal Program to achieve zero tolerance
for corruption. It serves as the legal infrastructure to
ensure the adoption and implementation of the
Integrity Development Action Plan (IDAP) which is
the Anticorruption Framework for the Executive
Branch. It also brings into the fore the importance
of expansion and strengthening of the
membership of the Integrity Committee and
adoption/updating of agency-specific Code of
Conduct, among others.
Development of anticorruption standards for public
servants


Inter-Agency Anti-graft Coordinating Council
(IAAGCC). It is composed of representatives from 8
agencies including COA to
create/approved/monitor the following
committees/projects through its Principals (heads of
agencies):
COA-OMB Joint Investigation Team - a joint
investigation team formed in 2012 to ensure the
efficient and successful filing, investigation and
prosecution of cases involving graft, corruption and
violations of the ethical code of conduct for public
officials and employees. The joint team gave priority
to the investigation and prosecution of selected high
profile cases.
Inter-agency Anti-Corruption
Coordinating Council



Inter Agency Policy Study Team (IAPST) – aims to come up
with policy recommendations to be signed by IAAGCC
Principals, in order to prevent/avoid repetition of what
happened with the Priority Development Assistance
Fund/Various Infrastructures including Local Projects
(PDAF/VILP) funds; to guide the legislators and those
people in the approval/ budgeting/ disbursements of funds
of similar nature
IT-based Reporting of Anomalies and Irregularities Project –
aims to interconnect IAAGCC’s Member agencies as
regards to IT reporting anomalies
Rationalization/Harmonization Workshop sponsored by the
British Embassy – to harmonize the processes of IAAGCC’s
member-agencies in order to enhance anti-corruption
enforcement in the Philippines
“SAI should strengthen
investigative powers in SAI
mandate.”
 Yes,
contemporary audit standards
impose an obligation on the auditor, to
take positive actions that will help assure
the detection of probable fraud if it exists
Reasons why auditors
do not detect more fraud
•
•
•
•
•
•
Lack of audit skill
No experience, training or skill in fraud
awareness, detection and investigation
Failure to include fraud detection when
planning audits
Lack of an awareness of the probabilities of
fraud occurring in the area being audited
Unaware of the implications of red flags or other
fraud indicators
Failure to follow up on fraud symptoms and
indicators
Part 3
 Planning
Stage
 Highest Risk Area for all Sectors
Public procurement and
contracting
Infrastructure projects
Funds transferred to
NGOs/projects implemented by
NGOs using government funds
Planning the Audit and
Formulating Audit Programs
The auditors/investigators assume duties more
like that of a detective, gathering evidence
to determine, among other
things, whether:
There is a probable fraud,
Who may have committed the probable
fraud,
The extent of the loss if any, and
Information as to how the probable fraud
was perpetrated.

Planning the Audit and
Formulating Audit Programs

Matters to be considered, as part of the fraud
audit/investigation planning process should include:
Terms of reference for the investigation.
Specific issues and matters to be examined in depth.
Evidence required.
Identification of functional areas and key staff to be
involved.
Identification of specialist expertise or support required.
Expected costs and time period for the investigation.
Milestones, key review points and report-back dates.
Possible outcomes.
How to detect corruption in
public procurement and
contracting

Red Flags
 Procurement of services, goods, or work projects
not needed, or in excess of what may be
required.
 Needs assessments for services, goods, or work
projects that are not adequate or are not
accurately developed.
 Requirements that justify continuing to contract
with or buy from only certain contractors or
vendors.
 Defining requirements so that only certain
contractors or vendors can supply them.
How to detect corruption in
public procurement and
contracting
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Red Flags
 Unsuccessful bidders who become subcontractors, or
goods and services suppliers.
 Contracting or purchasing from a single source
without developing alternate sources of goods and
services.
 Work statements or material specifications that
appear to fit a favored or single contractor or
vendor.
 Releasing procurement information to preferred or
selected contractors or vendors.
 Consulting with preferred contractors and vendors
about requirements and specifications.
How to detect corruption in
public procurement and
contracting
Red Flags
 Designing pre-qualification standards,
specifications or conditions to limit
competition to preferred vendors or
contractors.
 Splitting contract requirements to so
that contractors and vendors can share
or rotate bids and awards.
 Splitting procurement requirements to
avoid procurement policies.
How to detect corruption in
public procurement and
contracting
Red Flags
 Lost or misplaced vendor or contractor
bid proposals and price quotations.
 Questionable disqualification of a
contractor or vendor.
 Biased proposal evaluation criteria.
 Award of contract or purchase order to
other than lowest responsible bidder.
 Material changes to the contract or
purchase order after the award.
How to detect corruption in
public procurement and
contracting
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Red Flags
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Awards to contractors or vendors with a history
of poor or questionable performance.
Incorrect certification by the contractor or
vendor as to the stage of contract completion
or delivery of goods and services.
The delivery of services or materials that do not
conform to contract or purchase order
requirements.
Acceptance without verification of contractor
or vendor certification of service and material
quality
Public Information System
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Welcome to the COA Public Information System
To efficiently respond to requests, we utilize this Helpdesk using a
support ticket system. Every support request is assigned a unique
ticket number as reference for tracking your concern. Every request
requires a valid email address.
Open A New Ticket
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Please provide as much detail as possible so we can best assist you.
To update a previously submitted ticket, please login.
Open a New Ticket
Check Ticket Status
We provide archives and history of all your current and past support
requests complete with responses.
Check Ticket Status
Citizens’ Desk
 For
reports on allegations of fraud, waste,
abuse or mismanagement of funds,
please visit our Citizens' Desk:
The citizen feedback portal of
the COA
Report a case or volunteer to
be a citizen auditor
People’s vigilance
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In participatory audit,
citizens (civil society,
academic groups,
community members,
private sector) and the
COA work together to
audit the processes of
delivering public services
and government
programs. As a result,
transparency and
accountability in the way
government performs its
functions is enhanced
Forensic/Investigative Audit
Office
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Fraud Audit Office
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conducts audits of government agencies with probable
fraudulent transactions to safeguard government assets
against abuse and fraud and to respond to the
increasing public demand for fidelity in the use of
government funds and properly.
It is a multi-disciplinary office with staff composed of
lawyers, engineers, Certified Public Accountant and
Certified Fraud Examiners
It has a Forensic Auditing Manual developed under the
Integrity Project contracted by the Management
Systems International and funded by the USAid
Forensic Auditing Manual
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The Audit Manual on Forensic Auditing discusses forensic
auditing as a tool to prevent, detect, investigate and
support the prosecution of fraud. It explains the auditor’s
responsibility to take a proactive approach in detecting,
documenting, and referring instances of probable fraud,
the concept and principles underlying forensic audit; the
standards in the effective conduct of forensic audit; the
techniques, analytical tools and approaches used in
forensic auditing; the gathering, preservation and use of
forensic evidence for purposes of establishing
administrative, civil and criminal liability; the specific stages
and the logical procedures involved in forensic audit; and
fraud detection and investigative processes specific in the
conduct of forensic audit and investigation.
Capacity Building
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A General and Sector Specific Fraud
Awareness Training was conducted on 30 July
2014. The training focused on understanding
fraud, detecting and addressing fraud,
assessing and preventing fraud and
investigating fraud. Also included in the
training is the infrastructure fraud awareness.
Certified Fraud Examination Training – to
provide COA personnel continuous
development of their skills and competence
Cross training with Anti-corruption agencies
Utilization of Fraud Audit
Reports
 Fraud
audit reports with findings of
fraudulent acts discovered in
audit/investigation are
transmitted by Head of SAI to the
Office of the Ombudsman with
recommendation to file
appropriate cases against
persons liable/responsible.
Contents of Fraud Audit
Reports
The fraud audit report shall state the
findings vis-à-vis the allegations in the
complaint; the laws, rules and regulations
violated; the persons liable; and the
evidence in support of the findings.
 The amount of loss or damage to the
government shall be specified.
 The list of evidence shall be attached to
the report together with the pieces of
evidence.
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