RESPOND seminar explores new tools for detecting corruption in public procurement

The second RESPOND Online Seminar, hosted by Central European University, brought together researchers and practitioners to examine how corruption in public procurement can be detected more effectively through new data-driven methods.

In his presentation, Mihály Fazekas of Central European University outlined recent research that goes beyond traditional “red flag” indicators, such as single-bidding or non-open procedures. While these indicators remain useful, he argued that they often fail to capture more sophisticated forms of corruption, particularly where formal procedures appear compliant on paper.

Drawing on three recent studies, the seminar explored how new analytical approaches can help uncover these more subtle risks. The first paper showed how natural language processing can analyse procurement texts, such as product descriptions, eligibility criteria, and award criteria, to identify signs that tenders may have been tailored to favour a particular bidder. The findings suggest that text-based indicators can significantly improve the detection of restricted competition, especially when conventional red flags reveal little cause for concern.

The second paper turned to network analysis, using procurement data from Mexico to show how relationships between buyers and suppliers can reveal patterns of fraud and corruption. Rather than focusing solely on individual tenders, this approach examines how suppliers are positioned within broader contracting networks. The research found that network-based indicators can, in some cases, be even more informative than traditional procurement red flags.

The third paper focused on beneficial ownership data and its potential use in corruption risk assessment. By linking ownership records to procurement data across several countries, the research identified patterns, including unusually large numbers of companies controlled by the same individual, that may indicate attempts to conceal the true beneficiaries of public contracts.

A recurring theme throughout the seminar was the need to validate indicators carefully and to adapt tools to specific national and institutional contexts. Fazekas stressed that corruption risks evolve as corrupt actors become more sophisticated, meaning that monitoring systems must also continue to develop.

The discussion that followed raised important questions about methodology, bias, and the relationship between legal compliance and corrupt influence. Participants also reflected on the broader challenge of understanding corruption as an adaptive process, in which enforcement and evasion continuously respond to one another.

The seminar formed part of RESPOND’s ongoing series of public online events on corruption, democracy, and resilience. Further seminars in the series will continue to explore emerging research and policy questions across Europe and beyond.

Watch the seminar on our YouTube channel.