QUESTION 1: CONSTRUCTION/CIVIL FRAUD

A major infrastructure company, Mega Construction Corp. had been awarded a road construction contract by the government. For execution of the project, the company had sub-divided the geographies and execution areas and invited bids for the sub-contracting. The company had publicized a whistle-blower policy and received a complaint from one of the bidders about possible collusion between certain bidders. The matter was sought to be investigated by the management of the company.

As the companys fraud expert, you are investigating this possible fraud and are preparing to take necessary actions to complete a thorough investigation.

REQUIRED:

(a) Determine the possible type of schemes being perpetrated and red flag indicators of the said conduct.

(b) What are the steps taken to complete the investigation and the evidence sought for prosecution of perpetrators?