eLesson 2

What is collusion?

Collusion means a secret cooperation or agreement in order to deceive others.


The biggest truck companies in a country agree between themselves to fix high prices

A contractor awards a contract to his cousin’s company, even though it was not the best bid

eLesson on Collusion:

4 mins left

Why should you care about collusion?

Collusion between suppliers is not permitted by the Global Fund

It reduces fair competition and drives up the prices of medicines and health products

It discourages honest, qualified suppliers from participating in Global Fund grant activities

It facilitates the supply of sub-standard health products

It prevents Global Fund programs from achieving full impact

eLesson on Collusion:

4 mins left

How do you spot collusion?

Collusion can have the following red flags:

The same suppliers wins multiple contracts

Unexplained increase in product prices

Decrease in product quality

Complaints of unfair competition from losing bidders

Anonymous or employee complaints about buyer and vendors

Qualified suppliers refrain from bidding

Closed bidding and using unapproved vendors

Contract awards rotate among the same group of suppliers

Similar-looking bids from different suppliers; bids with the same mathematical or spelling errors

Similar address, phone numbers and email between bidders

The winning bidder is always the last one to bid

Favorable treatment given to a particular bidder as compared to others

Subjective technical selection procedures and disqualifications

No penalties for delivery delays or faulty products

Bidders are prevented from competing for unfair reasons

Losing bids are poorly prepared or missing basic bid documentation

Information exchange between bidders

Standardisation of prices suggested by different bidders

Losing bidder hired as sub-contractors

eLesson on Collusion:

5 mins left

Case study on collusion

Read a case study about collusion from the Office of the Inspector General archives

eLesson on Collusion:

5 mins left


Is this collusion?



A supplier of malaria nets askes for a bribe to speed up delivery.
Criminals steal drugs from a central warehouse.
A supplier pays a kickback to a procurement officer in order to obtain a contract.