Employee Fraud and Purchasing Department

Topics: Management, ManaGeR, Employment Pages: 2 (551 words) Published: October 3, 2011
Employee Fraud and Purchasing Department

There is a phenomenon in middle/small size companies in China that purchasing agents of the companies collaborate with vendors to create fake receipts, in order to receive more reimbursement from the company. This also happened in the hospital I used to work for, where the purchasing agent had to buy food from different vendors for everyday dinning purpose. The fraud got exposed when one day a vendor called us and revealed the fact that the purchasing agent had negotiate with him for a receipt showing higher cost. I believed that most of the stakeholders of the company were affected by this, include food department manager. It was partly because the HR department didn’t hire a responsible employee and the purchasing department manger didn’t do a good monitoring work that increased the company’s expense. The suppliers and patients may regard this organization as lack of ethic culture and thus untrustworthy. Moreover, the possibility that employees may follow this kind of example in the future makes this problem even worse.

This issue is extremely serious for my colleague who is currently a purchasing department manager, because it hurts his capability of running the department and managing his people. The occurrence of something like this makes him feel shamed and embarrassed in the company. He has to make sure this will never happen again. Failing to get rid of this problem may result in ethic issues like lying, cheating from the employees and lack of trust between the employee and managers in the company. If the manager can’t figure out a way to prevent this fraud without help from the vendors, more employees may regard it easy to cheat the company and benefit themselves.

Well, I have some advice for the manager: 1) Rely on more professional and reputable vendors for future supplying; 2) Send out two purchasing agents at the same time for...
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