A Procurement Crime at Intel: Loopholes and Lessons Learned

Art of Supply

While true crime has gained traction as a genre in the literary world, it's not often we see it applied to procurement. Yet, a fascinating and unsettling procurement fraud case has recently come to light within Intel Israel's operations. Every criminal investigation seeks to uncover means, motive, and opportunity, and this case checks all three boxes, with implications that go far beyond one company.

Just a few weeks ago, a story broke that uncovered an alleged scheme in which a now-former employee, Natalia Avtsin, and a component supplier, Yefim Tsibolevsky from Energy Electronics 2000, teamed up to steal roughly 3 million Israeli shekels (NIS), or about $842,000 USD.

Although the case is still ongoing and has yet to see its day in court, it poses a lot of questions for procurement teams across the globe.

In this episode of the Art of Supply podcast, Kelly Barner covers:

• How Avtsin and Tsibolevsky pulled off this alleged fraud
• The process loopholes and absent oversight that allowed them to get away with it for so long
• The many lessons procurement can take from this case regarding checks and balances, pattern detection, and technology use

Links:

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