Worldwide government purchasing or government procurement is estimated to be over $10 Trillion each year. Of this large amount of government purchasing, it is estimated that as much as 20% may be through illegal bribes, kickbacks, and other illicit payments. Government procurement spending includes military spending; public works projects; public health care (pharmaceuticals, medical equipment, & hospitals); ports, transportation, & roads; mining and oil extraction; power grid and stations; education; law enforcement; and sanitation services. Because of the vast amount of money spent by governments on government procurement, there are many different types of government procurement illegal bribery schemes, illegal kickback schemes, and other illicit payment schemes that have been created to steal money from the public at the expense of a country's citizens.
"Western companies seeking to find their way into China’s largely state-run health care system face heightened risks now that the Chinese government is planning to investigate drug-procurement and medical-device tendering. The tendering and procurement process is opaque and fragmented, giving companies more headaches when they try to enter the market, experts said."
"It becomes a bigger problem given news that China’s government, according to recent reports, is going to start inspecting hospitals’ invoices in a bid to curb commercial bribery and money laundering during the procurement process."
"The U.S. Justice Department has been in the middle of sweeping probes into both the pharmaceutical and medical-device industries. For example, orthopedic manufacturer Biomet Inc. agreed in March to pay the U.S. $22 million to settle FCPA charges that the company paid more than $1.5 million in direct and indirect payments to employees of state-owned health care providers in Argentina, Brazil and China to secure lucrative business with hospitals. The company didn’t enter a guilty plea, but accepted responsibility for the allegations laid out in court documents."