Implications of Kickbacks
1. Variety of Forms: Kickbacks come in a variety of shapes and sizes, but they always involve some kind of collaboration between two parties. For instance, even when they are aware that the invoice for products is inflated, the accountant for a company or government agency may nevertheless authorize it. The bookkeeper may then receive a portion of the difference from the goods seller (or some other type of payment).
2. Difficulty of Detection: One of the hardest white-collar crimes to identify and look into is a kickback scheme.
3. Influence on Decision-Making: Additionally, kickbacks might be used to purchase a recommendation that favors the bribe supplier. For instance, selecting one contractor over another in the course of managing contractors for a government project like building a bridge may result in the employee receiving a bribe. A more competent contractor might not win the bid as a result of this.
4. Prevalence in Procurement Contracts: Kickback systems can thrive on procurement contracts. For instance, bids from contractors hoping to win the company are usually needed when a government contract is awarded for office equipment. Instead of being fair, a contractor may approach a procurement officer and suggest that the officer would receive a payment if the contractor prevailed. Money, tickets to a performance, etc., might be the prize.
5. Warning Signs: These are a few typical warning indicators of kickbacks. They don’t always indicate that something sinister is happening, but the possibility of a kickback scheme increases with their number.
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