Defense and aerospace companies ILC Dover LP and ILC Astrospace LLC, of Frederica, Delaware, have agreed to pay $13 million to resolve allegations that they violated the False Claims Act by failing to comply with cybersecurity requirements in their contracts with the Department of the Army, the Missile Defense Agency, and the National Aeronautics and Space Administration (NASA).
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.