Pwc Cautions On Business Costs From Frauds
Nov 25, 2002
EMBEZZLEMENT has been cited as one of the most serious problems facing companies and their employees are the leading culprits.
By Vision Reporter
EMBEZZLEMENT has been cited as one of the most serious problems facing companies and their employees are the leading culprits.
This was a key finding in a economic crime survey done in Kenya, Tanzania and Zambia by PricewaterhouseCoopers, the global professional services firm. Much of the findings were considered very relevant to Uganda.
“Tackling endemic acceptance of these frauds is vital,†Jack Ward, a regional specialist and Partner in PwC Kenya told guests during a breakfast briefing at the Sheraton Kampala yesterday. Invitations were sent to both public and private sector people.
Titled ‘Counting the cost’, the survey states, ‘The greatest risk to companies comes from their own employees and managers rather than from the outside.’
It also highlights that 58% of companies surveyed were victims of economic crime in the last two years. The total quantified cost of economic crime to the 189 businesses surveyed was $206m over two years.
Other key conclusions from the survey, are that on average, $1.3m was lost in the two years per hit of quantified fraud. The ‘real’ cost is likely to be much higher. ‘At the country level, respondents perceived corruption to be the most prevalent economic crime,’ the survey states.
Fielding a question on whether the local laws are adequate, Ward said: “I believe we have reasonable laws. Common laws shared by many countries from the British system. I think the problem is implementation being effectively applied.â€
John Hallows, a PwC Partner in Uganda, added, “People have to trust the judicial system, because we have to work with it and hope it improves. If you can’t trust the system then there is a problem in investing in Uganda,†he said. Ends
EMBEZZLEMENT has been cited as one of the most serious problems facing companies and their employees are the leading culprits.
This was a key finding in a economic crime survey done in Kenya, Tanzania and Zambia by PricewaterhouseCoopers, the global professional services firm. Much of the findings were considered very relevant to Uganda.
“Tackling endemic acceptance of these frauds is vital,†Jack Ward, a regional specialist and Partner in PwC Kenya told guests during a breakfast briefing at the Sheraton Kampala yesterday. Invitations were sent to both public and private sector people.
Titled ‘Counting the cost’, the survey states, ‘The greatest risk to companies comes from their own employees and managers rather than from the outside.’
It also highlights that 58% of companies surveyed were victims of economic crime in the last two years. The total quantified cost of economic crime to the 189 businesses surveyed was $206m over two years.
Other key conclusions from the survey, are that on average, $1.3m was lost in the two years per hit of quantified fraud. The ‘real’ cost is likely to be much higher. ‘At the country level, respondents perceived corruption to be the most prevalent economic crime,’ the survey states.
Fielding a question on whether the local laws are adequate, Ward said: “I believe we have reasonable laws. Common laws shared by many countries from the British system. I think the problem is implementation being effectively applied.â€
John Hallows, a PwC Partner in Uganda, added, “People have to trust the judicial system, because we have to work with it and hope it improves. If you can’t trust the system then there is a problem in investing in Uganda,†he said. Ends