TYPICAL CORRUPTION PRACTICES IN PROCUREMENT (ANTI-BRIBERY MANAGEMENT SYSTEM SERIES)

Photo source : Dreamtime

Based on my experience in assessment, one of the most critical department that I would focus on would be Procurement (or Purchasing) This is because the department are involved in various transactions with Supplier/Sub-Contractor/Materials where if not properly controlled or without proper procedure, potential and risk of corruption practices may occur.

Disclaimer - Without naming such organization (s) due to Oath of Confidentiality and the author may change some details/sequence of events - corruption in the Procurement Department can occur through various means and practices. Here are some common ways in which corruption can happen in procurement:

(1) Bribery

Suppliers/Subcontractors may offer bribes to procurement officials in exchange for favorable treatment, such as winning a contract or receiving preferential pricing. This can involve cash payments, gifts, vacations, or other forms of illicit benefits.

(2) Collusion

Procurement officials may collude with specific suppliers/subcontractors to manipulate the bidding process. They might provide confidential information about competitors' bids, set biased selection criteria, or create artificial barriers to exclude certain suppliers, all with the aim of awarding contracts to predetermined vendors.

(3) Kickbacks

Procurement officials may receive kickbacks from suppliers/subcontractors after awarding them contracts. In this scenario, the suppliers/subcontractors inflate their prices and then kick back a portion of the excess payment to the corrupt officials.

(4) Fraudulent Invoicing

Suppliers/Subcontractors can submit fraudulent invoices to procurement departments for goods or services that were never delivered or were delivered at inflated prices (even I've seen cases of wrong (intentional) delivery to a further location "blaming" the location given by Procurement (intentional) - in order for the subcontractor/supplier to claim additional cost) Corrupt officials may approve these invoices in exchange for kickbacks or other personal benefits.

(5) Conflict of Interest

Procurement officials with undisclosed personal interests or relationships may manipulate the bidding process to favour companies they are associated with, such as family members or close friends (cronyism) . This undermines fair competition and can result in biased contract awards. (anti-trust)

(depending of the case where "impartiality" can be proven)

(6) Nontransparent Procurement Processes

Lack of transparency in procurement procedures can create opportunities for corruption. For instance, if the Procurement Department operates without clear guidelines or proper oversight, officials can exploit loopholes to engage in corrupt practices.

(7) Weak internal controls

Inadequate internal controls and poor governance structures within the procurement department can facilitate corruption. Lack of segregation of duties, limited oversight, and ineffective auditing mechanisms create an environment conducive to fraudulent activities.

(8) Influence peddling

Powerful individuals or organizations may exert undue influence on the procurement process to benefit certain suppliers/subcontractors. This could involve political pressure, nepotism, or other forms of manipulation, thereby compromising the integrity of procurement decisions.

Preventing corruption in the procurement department requires robust anti-corruption measures, such as :

a) implementing transparent processes,

b) promoting accountability and ethics,

c) conducting regular audits, and

d) providing training on anti-corruption practices.

It's crucial to establish a strong ethical culture and foster an environment where reporting corruption is encouraged and protected.

THOUGHT FOR THE DAY? WHAT'S WITH LANDSCAPE ARCHITECTURE IN MALAYSIA?

 

Landscape architecture in Malaysia still holds promising prospects if the strategies are right. There have been demand for Sustainable Development, Urban Development/Green Spaces, Tourism and Hospitality is booming back and so many more.

ARTIFICIAL INTELLIGENCE, WHERE DO I SIGNUP? (DEAR MALAYSIANS)

 

MALAYSIANS!

A) Perhaps you are wondering, how can Artificial Intelligence benefit entrepreneurs.

First, entrepreneurs need to know that Artificial Intelligence (AI) has the potential to create income in many ways. Among others :

1) Product Development 

Choose one :

(a) innovative products or

(b) enhance existing ones.

Whatever your choice would be, AI technologies can help automate processes, improve efficiency, and enable the creation of intelligent solutions. By incorporating AI into their product offerings, entrepreneurs can deliver enhanced value to customers and generate income through sales.

2) Customer Experience/Personalization

AI can enable entrepreneurs to personalize products, services, and customer experiences at scale. By leveraging AI algorithms, entrepreneurs can analyze customer data to understand preferences, behaviors, and patterns, allowing them to tailor offerings to individual customers. This personalization can drive customer satisfaction, loyalty, and ultimately, revenue growth.

3) Automation and Efficiency

AI can automate repetitive and time-consuming tasks, freeing up entrepreneurs and their teams to focus on higher-value activities. By automating processes such as data entry, customer support, inventory management, or content generation, entrepreneurs can optimize resource allocation, reduce costs, and improve overall operational efficiency.

4) Data Analytics and Insights

AI-powered analytics can help entrepreneurs extract valuable insights from large volumes of data. By utilizing AI algorithms, entrepreneurs can identify trends, patterns, and correlations within their data, enabling data-driven decision-making. These insights can inform business strategies, marketing campaigns, pricing models, and product development, leading to increased revenue opportunities.

5) Predictive Analytics and Forecasting

AI can be employed to predict future trends, demand patterns, and customer behavior. By leveraging machine learning algorithms, entrepreneurs can make accurate forecasts, anticipate market changes, optimize inventory management, and adjust pricing strategies accordingly. These predictive capabilities can enable entrepreneurs to make proactive business decisions and seize income-generating opportunities.

6) AI as a Service (AIaaS) 

Entrepreneurs can build AI models, algorithms, or platforms and offer them as services to other businesses. By providing AI solutions as a service, entrepreneurs can generate income through licensing, subscription-based models, or revenue-sharing arrangements. AIaaS can be employed across various domains, such as natural language processing, computer vision, recommendation systems, or predictive analytics.

7) AI-Enabled Marketing and Advertising

Entrepreneurs can leverage AI to optimize their marketing and advertising efforts. AI-powered tools can analyze consumer data, target specific customer segments, and deliver personalized marketing campaigns. This can lead to higher conversion rates, increased customer acquisition, and improved ROI on marketing investments.

Next :

B) HOW?

Starting a business related to Artificial Intelligence (AI) can be an exciting venture for entrepreneurs. Start with the following points :

1) Identify Market Needs 

Identifying a specific market needs (or problem) that can be addressed through AI technologies. Start researching various industries and sectors to understand where AI can make a significant impact. Look for areas that can benefit from automation, optimization, personalization, or improved decision-making through AI-powered solutions.

2) Don't be greedy - choose one Niche first

AI is a vast field, so you can't be a jack of all trades.

So it's helpful to choose a niche or specialization for your business. This could be specific industries like healthcare, finance, e-commerce, or areas like natural language processing, computer vision, robotics, or predictive analytics.

Focusing on a specific niche allows you to build expertise and stand out in a crowded market.

3) Build a Team

Assemble a team with the necessary skills and expertise in AI. This may include data scientists, machine learning engineers, software developers, domain experts, and business strategists. Having a diverse team with complementary skills will enable you to develop and deliver AI solutions effectively.

4) Develop AI Solutions

Start by developing AI solutions that address the identified market need. This may involve building AI algorithms, models, or platforms tailored to your target industry or problem domain. Invest in research and development to create innovative and valuable solutions that differentiate your business from competitors.

5) Data Acquisition and Preparation

AI systems rely on data to learn and make accurate predictions or decisions. Identify relevant data sources and acquire the necessary datasets. Clean, preprocess, and structure the data to ensure it is suitable for training AI models. Consider partnerships or collaborations to access additional data if needed.

6) Proof of Concept and Testing

Create a proof of concept (PoC) (it's not easy as it sounds) or minimum viable product (MVP) (not easy as it sounds as well) to demonstrate the effectiveness of your AI solution. Test it rigorously to ensure its performance, accuracy, and scalability (very important) Collect feedback from early adopters or pilot customers to refine and improve your product.

7) Establish Smart Partnerships

Maybe it's new to Malaysians, but you can find many industry partners, academic institutions, or research organizations - collaborate and share with them. This will enable you to access expertise, resources, and potential customers. Partnerships can provide credibility, access to new markets, and opportunities for joint innovation or co-development.

8) Business Model and Revenue Streams

Define your business model and revenue streams. Consider whether you will offer AI solutions as products, services, or a combination of both. Explore different pricing models such as subscription-based, licensing, or revenue-sharing arrangements. Tailor your pricing to reflect the value your AI solutions provide to customers.

9) Marketing and Sales (Another aspect that easier said than done)

Develop a marketing strategy to promote your AI solutions effectively. Showcase the benefits, features, and competitive advantages of your products/services. Leverage digital marketing techniques, content marketing, industry events, and partnerships to raise awareness and attract customers. Engage with potential clients directly to understand their pain points and demonstrate how your AI solutions can address them.

MOST IMPORTANT

10) Stay Updated and Evolve (You're sure you have what it takes?)

AI is a rapidly evolving field, so it's crucial to stay updated with the latest trends, research, and technologies. Continuously invest in research and development to improve your AI solutions and stay ahead of the competition. Adapt to market changes and customer feedback to refine your offerings and ensure long-term success.

CONCLUSION (So called)

Remember!

Starting an AI-related business requires a combination of technical expertise, business acumen, and a deep understanding of the target market. It's essential to create value for customers, build strong relationships, and continually innovate to thrive in the AI landscape.

To be succesful in leveraging AI for income generation requires careful planning, investment in AI technologies and talent, and a thorough understanding of the specific business context. Entrepreneurs should assess their business needs, explore AI opportunities, and develop strategies that align with their overall goals and resources.

Once again, Any Takers?

MEREKA SEPATUTNYA TIDAK BOLEH MEMAKAI UNIFORM KETENTERAAN - SATU TEGURAN

Maaflah nak bercakap sikit.

Pada saya, sudah tiba masanya mereka yang tidak ada latarbelakang ketenteraan walaupun VIP, tidak usahlah beruniform sebab mereka yang layak memakai uniform berkenaan adalah mereka yang berkorban untuk negara, ada yang terkorban nyawa, menjaga perbatasan dan sempadan demi keselamatan rakyat Malaysia. Malah pernah bergabung untuk menyelamatkan tentera dari negara lain dalam operasi antarabangsa.

(Kalau VIP ni ada latarbelakang tentera, bolehlah kalau nak pakai pun)

Ini tidak, tidak pernah masuk latihan formal ketenteraan, takat masuk dalam 2 minggu - 1 bulan - tup tup dapat pangkat besar walaupun kehormat atau sukarela - walau tak de power - syok sendiri.

Kalau KDYMM SPB YDP Agong dan Raja-Raja Melayu dah memang menyertai latihan formal ketenteraan sehingga tamat latihan, layaklah baginda semua memakai uniform dan berpangkat setaraf dengan kedudukan mereka. Lagipun, ada sebab kenapa dipanggil Tentera DiRaja - tidak kira laut, darat atau udara. Kalau dengan Raja pun kita tiada etika, layakkah kita memakai uniform berkenaan?

Dulu rasanya mantan Menteri Pertahanan ada melarang akan hal ini setelah mendengar keluhan mereka yang bersusah-payah berjuang dan mendapat pingat/pangkat sehingga puluhan tahun lamanya. Apa perasaan mereka?

(Tiba-tiba dah diperbolehkan pula)

VIP memang kena hormat tetapi ada etikanya.

WE NEED BETTER STRATEGIES TO SOLVE OR BETTER PREVENT HOMELESSNESS IN MALAYSIA

I was doing some brainstorming with interested private parties on the rising problems of homelessness in Malaysia.

Of course, solving homelessness is a complex issue that requires a multi-faceted approach involving various stakeholders, including government, non-profit organizations, communities, and individuals. 

While there is no one-size-fits-all solution, some strategies that can contribute to addressing homelessness:

1) More Affordable Housing 

Increase the availability of affordable housing options, such as subsidized housing, rent control measures, and low-income housing programs. Investing in affordable housing helps individuals and families secure stable housing.

2) Supportive Services 

Provide comprehensive support services to homeless individuals, including mental health services, substance abuse treatment, job training, and counseling. These services help address the underlying causes of homelessness and support individuals in regaining stability.

3) Prevention and Early Intervention 

Focus on preventing homelessness by implementing early intervention strategies. This can involve targeted assistance to individuals and families at risk of losing their homes, such as rental assistance programs or financial counseling.

4) Collaboration and Coordination 

Foster collaboration among government agencies, non-profit organizations, and community groups to coordinate efforts and resources effectively. This can help streamline services, avoid duplication, and maximize the impact of interventions.

5) Education and Employment 

Promote education and employment opportunities to enhance individuals' skills and increase their chances of finding stable employment. Partner with businesses and organizations to create job training programs and facilitate job placement for homeless individuals.

6) Outreach and Engagement 

Develop outreach programs to connect with homeless individuals and build trust. Street outreach teams can provide immediate assistance, access to resources, and information about available services.

7) Policy and Advocacy

Advocate for policy changes at the local, regional, and national levels to address the root causes of homelessness. This may involve advocating for increased funding for affordable housing, healthcare, and social services.

8) Homelessness Prevention Networks

Establish networks that bring together stakeholders, including government agencies, service providers, and community members, to identify local solutions, share best practices, and coordinate efforts to prevent and address homelessness.

9) Public Awareness and Attitude Shift

(One of the most important aspects for Malaysians)

Educate the public about the realities of homelessness and challenge stereotypes and stigmas associated with it. Promote empathy and compassion in order to build supportive communities that can help prevent and address homelessness effectively.

It's important to note that the solutions to homelessness may vary depending on the specific social, economic, and cultural contexts of different regions.

Addressing homelessness requires a long-term commitment, sustained funding, and a holistic approach that tackles the underlying issues contributing to homelessness.