Identifying Vendor Misconduct for Leading Global Brand
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April 28, 2025
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A popular global consumer goods company faced serious allegations of conflicts of interest and vendor kickbacks at one of its manufacturing facilities in Asia. Whistleblowers reported that members of the engineering design team exploited their positions to manipulate vendor selection, demanding financial kickbacks in return. At the direction of legal counsel, the company hired FTI Consulting to investigate the allegations.
Our Impact
- FTI Consulting’s findings revealed that key members of the engineering design team were influencing vendor selection, likely in exchange for financial rewards. The scheme involved multiple vendors inflating prices, compounded by related-party connections between suppliers and certain employees.
- Our investigation allowed the company to take decisive action, terminating the implicated individuals and severing relationships with the vendors involved, and strengthen its internal controls by implementing a comprehensive third-party due diligence process for new vendors in Asia.
- With the help of our team, the company ultimately established effective oversight to prevent future misconduct and safeguard the company’s operations by implementing ongoing monitoring procedures.
Our Role
- In collaboration with Counsel, our experts conducted detailed interviews with 25 employees at the client’s manufacturing facility in Asia, including whistleblowers, individuals accused of misconduct and colleagues who may have had relevant insights.
- We thoroughly examined the company’s vendor onboarding process, assessing any due diligence measures currently in place to identify gaps and weaknesses.
- Our team engaged with over a dozen vendors and one intermediary to gather additional information on procurement practices and potential involvement in the allegations.
- We performed extensive business intelligence research on key vendors, analyzing relevant documentation to evaluate their backgrounds and connections with the company.
Published
April 28, 2025
Key Contacts
Senior Managing Director