Company Screening & Vetting Services

The supplier selection process should not only determine the best supplier for the job, it should enable the procurement office to ensure the legal compliance of the supplier.

Company Screening and Vetting

Due Diligence in Vendor Verification: A Crucial Fraud Prevention Tool

In today’s dynamic business environment, conducting thorough due diligence during the vendor verification process is essential for any company looking to mitigate risks and prevent fraud. At iFacts, we specialise in providing comprehensive vendor verification services that ensure your business partners are legitimate, reliable, and trustworthy.

Compliance rules and law regulation policy concept. Businessman touch compliance icons on virtual screen for enforcement of laws, regulations, and standards.

Here's how implementing due diligence can strengthen your organiSation:

Fraud Prevention

Conducting detailed background checks helps identify red flags such as false credentials, financial instability, or a history of unethical behaviour. This proactive approach minimises the risk of engaging with fraudulent vendors.

Enhanced Reputation

Building strong relationships with verified vendors protects your organisation’s reputation. By ensuring compliance and integrity in your supply chain, you foster trust among clients and stakeholders.

Regulatory Compliance

Many industries are subject to strict regulatory requirements. Due diligence in vendor verification ensures that your business complies with relevant laws and regulations, reducing the risk of legal issues.

Our vendor verification services include comprehensive checks that evaluate a vendor’s financial stability, business history, ownership structure, and regulatory compliance. With our robust processes, you can make informed decisions and choose partners that align with your organisation’s values and goals.

Investing in due diligence during the vendor verification process is not just a best practice—it’s a necessary step in safeguarding your company against fraud and risk. At iFacts, we are committed to helping you create a secure and reliable vendor network.

Here are some of the most common checks conducted in a vendor verification process:

Business Registration Verification

Confirming that the vendor is a registered entity with the Companies and Intellectual Property Commission (CIPC) or relevant authorities.

Tax Compliance Check

Verifying that the vendor is registered for tax and is compliant with the South African Revenue Service (SARS) requirements.

Financial Stability Assessment

Reviewing financial statements, credit reports, and payment history to assess the vendor’s financial health.

Ownership and Leadership Verification

Checking the background of key owners and executives for any history of fraudulent activity or legal issues.

B-BBEE (Broad-Based Black Economic Empowerment) Verification

Evaluating the vendor’s B-BBEE status to ensure alignment with South African empowerment policies, which may affect procurement decisions.

Industry Certifications and Licenses

Confirming that the vendor possesses the necessary industry-specific licenses, certifications, and accreditations required to operate legally.

Criminal Record Check

Conducting background checks on key personnel to assess any criminal history that could pose a risk to the organisation.

Reputation and Reference Checks

Seeking references from other clients and assessing online reviews to gauge the vendor’s reputation in the industry. This may also include social media risk assessments.

Compliance with Health and Safety Regulations

Ensuring that the vendor adheres to occupational health and safety standards pertinent to their industry.

Insurance Verification

Confirming that the vendor has adequate insurance coverage, including liability and professional indemnity insurance.