Corruption in Purchase and Administration Department, Facts

Employer's attitude towards purchase managers, admin people and those who deal for procuring materials for the organization may have surprised you. You may think that you have done the deal honestly for the benefit of the organization, even though why the employers have a suspicious attitude? But your employer is right.


When I was in service I heard many stories about the purchase and admin people in private organization who take bribe. But at that time I thought that it is only allegations by some employees against their colleagues. But later I found that, these people have surprising financial growth. E.g. I know one junior employee who was getting less than Rs. 15,000/- salary purchased 2 big plot of land in Delhi. Another employee who is considered as very honest and efficient man has one bad habit. He has to earn something every day by cheating the employer. But he is able to maintain his good will as he is ready to do any personal work of seniors. These are small players.

When I moved to business, this surprising fact became a regular experience. Most of the people we dealt with have only one intention, just to earn money in any way. This may be by cheating the employer or supplier.  We have rejected many deals due to this kind of people and even reported some cases to their employers. The cheaters are trained players and experts to maintain their goodwill, but innocents are being treated badly by the employers.
Purchase department people have many ways to earn quick buck:
1. They will bargain at their level best to reduce the price. Initially we thought how sincere these employees are to their organizations. But before finalizing the deal they will say   "Please make the bill in MRP" and give the difference to me in cash. (For some products the selling price is much lower than MRP in Delhi).
2. In most of the organizations staff of purchase or admin department have strong  tie-up with supplier and they are doing secondary business for the personal benefit. In many cases we found that the employers have good faith on these employees and they are just utilizing it to earn quick money.
 3. In some organizations it is compulsory to get 3 quotations for every purchase. For this they will arrange 3 quotations of different companies. Once a purchase manager told me "sir your prices are much lower, you can increase the price by at least 10%". It was a simple technique to get a higher quotation from our organization and to give the order to his favorites supplier with whom he has tie up to receive bribe.

Now major threat in business is not competition, but it is organised corruption. Now the situation is you can't finalise a big deal without giving bribe.

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