Our client is a company formed in India in 1998. It has a rich heritage and is a pioneer of global technology, manufacturing a complete range of premium lubricants for automobile engines, equipment and various industrial applications.
During the course of an internal review, certain potential concerns regarding receipt of financial favors or kickbacks by the identified employees from select third parties were received from the security representative at the plant. Basis the same, we assisted the client in conducting an investigation on this incident.
We conducted disk imaging of the laptops of identified employees in order to obtain and review information on vendors/subcontractors and held interviews of the employees.
Impact
We were able to gather evidence for the following malpractices on certain employees in sourcing and operations:
- Unsubstantial inflation of vendor prices in quotations " Misuse of vendor letter head templates in the plant for creating invoice on behalf of third parties
- Accepting financial favors from contractors/third parties
- Negligent approval of invoices despite of incomplete documentation
- Submission of falsified invoices from vendors for personnel reimbursable allowance claims
Following the investigation, the management initiated disciplinary actions on employees and enhanced their monitoring mechanism to address similar issues in future.
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