Transparency in bidding is a matter of utmost importance, however public and private organizations are faced with great technical difficulties to ensure traceability and good practices in their processes. 

To address this issue, the law firm PPU Legal joined wherEX in a webinar where it explained and analyzed how digital transformation can contribute significantly in the fight against collusion and fraud in the bidding processes of companies and state bodies. 

In this regard, attorney Ignacio Larraín of PPU Legal referred to the so-called "Emilia Law applied to collusions". This legal figure was recently incorporated in the law that sets the rules for the defense of Free Competition in Chile. With it, the penalties for economic crimes and lack of transparency in bids are stiffened. 

"Now there is a risk of serving one year of effective imprisonment. Regardless of the extenuating circumstances, or previous impeccable conduct. Here we are not talking about ethics classes, but about being deprived of liberty for a year", emphasized Larraín. 

The answer lies in digital transformation

While PPU Legal spoke about the risks and illegalities associated with the lack of transparency in bidding processes, Felipe Manterola, co-founder of wherEX, spoke about the technological solutions and preventive tools offered by the technology platform.

"Our digital service is effective in fighting collusion and fraud. On the one hand, we protect suppliers competing in bidding processes. But we also advise bidding companies with our technology so that they can design transparent and traceable requirements," explained Manterola. 

The executive also pointed out that a purchasing and sales process must have a well-defined regulatory framework and a corporate culture with values. Therefore, a sophisticated compliance policy will not be useful if the necessary technology is not implemented to effectively measure, detect and prevent all possible illicit activities. 

According to Larraín, the effective prevention of these crimes requires an active policy that helps to identify any type of risky behavior. "These crimes tend to be committed due to the lack of implementation of surveillance and control mechanisms in companies and organizations".

Manterola gave some tips on how to prevent these situations. "There is no perfect formula, but there are things you can anticipate. It is possible to prioritize risks, monitor them permanently and ensure due diligence when making complex decisions." For this, he added, it is essential to take advantage of the value and potential of data, technology and Data Analytics. These are tools that are part of the service provided by wherEX to hundreds of bidding companies.

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