AN ANALYSIS OF THE TAIWAN ARMY TIFV PROCUREMENT FRAUD CASE

Abstract

The problem that motivated this research was the recurring nature of procurement fraud and its significant impact on national security and public trust. The theoretical foundation for this research was based on auditability theory, establishing how organizational accountability rests on the interaction of a competent workforce, capable processes, and effective internal controls. The purpose of this research was to analyze the Taiwan TIFV procurement fraud case by applying the auditability theory, aligning the alleged fraud and mismanagement incidents that occurred to different contract management processes, internal control components, and procurement fraud schemes. The findings of this research may help the Taiwan government and any other Ministry of Defense to understand how procurement fraud occurs, in which contracting life cycle phase fraud happens, which internal control component is deficient to allow these incidents to occur, and how these incidents align with procurement fraud schemes. These research findings may provide more insight and knowledge into procurement fraud in order to better detect and deter procurement fraud in the future. Furthermore, these findings may strengthen and enhance the management of internal controls and may raise awareness of the identified fraud trends by providing insights and recommendations to avoid fraud-conducive conditions.