New guidance highlights fraud and corruption risks in supplier management

Read Fraud and corruption risks in poor supplier management [PDF, 558 KB]

The supplier management lifecycle is a critical area of vulnerability. SFO cases continue to show how trusted insiders can exploit weaknesses in contracting and supplier processes, sometimes defrauding organisations over many years. 

Deputy Chief Executive for Strategy and Prevention, Dan Eaton, said the guidance draws on lessons from past cases to help agencies identify and respond to fraud risks. 

“These cases aren’t just cautionary tales – they’re opportunities to learn where systems failed and how we can build them back stronger,” Mr Eaton said. 

“Fraud evolves with our systems, people and processes. Staying ahead means constantly challenging our assumptions and controls.” 

The new guidance outlines common scenarios where supplier management processes may be exploited and suggests a range of controls to improve oversight and reduce risk. 

The guidance, Fraud and corruption risks in poor supplier management, is available now from the Counter Fraud Centre. 

About the Counter Fraud Centre  

The Counter Fraud Centre is the prevention arm of the SFO. It works with public sector organisations across New Zealand to build capability and resilience against fraud and corruption, offering free resources, workshops, webinars and tailored services.