PUBLIC PROCUREMENT IN BRAZIL: EVIDENCE OF FRAUDS USING THE NEWCOMB-BENFORD LAW

This article uses the Newcomb-Benford(NB-Law), or Law of Anomalous Numbers, to analyze the values of Electronic Bidding Processes that occurred in the Purchasing Portal of the Brazilian Federal Government and contained in the newly created website “DadosAbertos.gov.br”. In the analysis, all services...

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Main Authors: Adilson da Hora Sampaio, Paulo Soares Figueiredo, Elisabeth Loiola
Format: Article
Language:English
Published: FGV’s Sao Paulo School of Business Administration (FGV EAESP) 2022-01-01
Series:Cadernos Gestão Pública e Cidadania
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Online Access:https://bibliotecadigital.fgv.br/ojs/index.php/cgpc/article/view/82760/80533
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author Adilson da Hora Sampaio
Paulo Soares Figueiredo
Elisabeth Loiola
author_facet Adilson da Hora Sampaio
Paulo Soares Figueiredo
Elisabeth Loiola
author_sort Adilson da Hora Sampaio
collection DOAJ
description This article uses the Newcomb-Benford(NB-Law), or Law of Anomalous Numbers, to analyze the values of Electronic Bidding Processes that occurred in the Purchasing Portal of the Brazilian Federal Government and contained in the newly created website “DadosAbertos.gov.br”. In the analysis, all services contracted in the period from 2014 to 2018 were considered. The objective of the research was to analyze the conformity of the Electronic Auction referred to the NB-Law, aiming to verify anomalies, which represent signs of fraud. It can be said that there was a statistically significant anomaly in the analysis of the first digit of the values bid in the Electronic Bidding Tenders. It is also noted that the trading sessions with the first digit of numbers 4, 8 and 9 are those with the largest differences between expected and observed values, strengthening the hypothesis that these represent the trading sessions with the highest incidence / probability of deviations, to be tested in future studies. The study, pioneer in this type of analysis in the Brazilian data source, aims to contribute to the literature focused on the detection of accounting or financial fraud in the public sector. The results collected here can also contribute to the practice of inspection in public management. It is recommended to deepen the studies based on the Economics of Corruption, on issues that involve the detection of fraud, so that corruption becomes unviable or inopportune.
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spelling doaj-art-81e1ab08bc044c1a8ced4947bc29b5ca2025-08-20T01:54:53ZengFGV’s Sao Paulo School of Business Administration (FGV EAESP)Cadernos Gestão Pública e Cidadania2236-57102022-01-012786https://doi.org/10.12660/cgpc.v27n86.82760PUBLIC PROCUREMENT IN BRAZIL: EVIDENCE OF FRAUDS USING THE NEWCOMB-BENFORD LAWAdilson da Hora Sampaio0Paulo Soares Figueiredo1Elisabeth Loiola2Universidade Federal da Bahia, Escola de Administração, Salvador, BA, BrazilUniversidade Federal da Bahia, Escola de Administração, Salvador, BA, BrazilUniversidade Federal da Bahia, Escola de Administração, Salvador, BA, BrazilThis article uses the Newcomb-Benford(NB-Law), or Law of Anomalous Numbers, to analyze the values of Electronic Bidding Processes that occurred in the Purchasing Portal of the Brazilian Federal Government and contained in the newly created website “DadosAbertos.gov.br”. In the analysis, all services contracted in the period from 2014 to 2018 were considered. The objective of the research was to analyze the conformity of the Electronic Auction referred to the NB-Law, aiming to verify anomalies, which represent signs of fraud. It can be said that there was a statistically significant anomaly in the analysis of the first digit of the values bid in the Electronic Bidding Tenders. It is also noted that the trading sessions with the first digit of numbers 4, 8 and 9 are those with the largest differences between expected and observed values, strengthening the hypothesis that these represent the trading sessions with the highest incidence / probability of deviations, to be tested in future studies. The study, pioneer in this type of analysis in the Brazilian data source, aims to contribute to the literature focused on the detection of accounting or financial fraud in the public sector. The results collected here can also contribute to the practice of inspection in public management. It is recommended to deepen the studies based on the Economics of Corruption, on issues that involve the detection of fraud, so that corruption becomes unviable or inopportune.https://bibliotecadigital.fgv.br/ojs/index.php/cgpc/article/view/82760/80533public procurementelectronic auctioncorruptionnewcomb-benford lawbidding frauds
spellingShingle Adilson da Hora Sampaio
Paulo Soares Figueiredo
Elisabeth Loiola
PUBLIC PROCUREMENT IN BRAZIL: EVIDENCE OF FRAUDS USING THE NEWCOMB-BENFORD LAW
Cadernos Gestão Pública e Cidadania
public procurement
electronic auction
corruption
newcomb-benford law
bidding frauds
title PUBLIC PROCUREMENT IN BRAZIL: EVIDENCE OF FRAUDS USING THE NEWCOMB-BENFORD LAW
title_full PUBLIC PROCUREMENT IN BRAZIL: EVIDENCE OF FRAUDS USING THE NEWCOMB-BENFORD LAW
title_fullStr PUBLIC PROCUREMENT IN BRAZIL: EVIDENCE OF FRAUDS USING THE NEWCOMB-BENFORD LAW
title_full_unstemmed PUBLIC PROCUREMENT IN BRAZIL: EVIDENCE OF FRAUDS USING THE NEWCOMB-BENFORD LAW
title_short PUBLIC PROCUREMENT IN BRAZIL: EVIDENCE OF FRAUDS USING THE NEWCOMB-BENFORD LAW
title_sort public procurement in brazil evidence of frauds using the newcomb benford law
topic public procurement
electronic auction
corruption
newcomb-benford law
bidding frauds
url https://bibliotecadigital.fgv.br/ojs/index.php/cgpc/article/view/82760/80533
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