Most businesses silent on fraud - report
Oct 20, 2005
MOST businesspeople do not report cases of fraud in their firms due to lack of confidence in the Police, an official of KPMG, a global auditing company, has said.
By David Muwanga
MOST businesspeople do not report cases of fraud in their firms due to lack of confidence in the Police, an official of KPMG, a global auditing company, has said.
“One hundred percent of respondents from the business sector indicated that they don’t report cases of fraud due to lack of confidence in the Police. This is because there are no chances of recovering the money. They fear negative publicity and don’t want to tie up their resources for years with criminal cases,†KPMG’s partner Zahir Sheik said.
Quoting a survey carried out in 13 African countries, “Africa Fraud and Misconduct Survey of 2005,†Sheik said 80% of the respondents said they don’t report fraud due to lack of confidence in the justice system.
“Sixty-eight percent of the respondents in Uganda say fraud is a major problem in their businesses, while 77% indicated that fraud will increase as criminals become more sophisticated, economic pressure and the Police’s inefficiency go up,†he said in a report he presented in Kampala recently.
Other causes of fraud are poor internal controls, collusion between employees and third parties, lack of control over management by directors and poor corporate ethics.
MOST businesspeople do not report cases of fraud in their firms due to lack of confidence in the Police, an official of KPMG, a global auditing company, has said.
“One hundred percent of respondents from the business sector indicated that they don’t report cases of fraud due to lack of confidence in the Police. This is because there are no chances of recovering the money. They fear negative publicity and don’t want to tie up their resources for years with criminal cases,†KPMG’s partner Zahir Sheik said.
Quoting a survey carried out in 13 African countries, “Africa Fraud and Misconduct Survey of 2005,†Sheik said 80% of the respondents said they don’t report fraud due to lack of confidence in the justice system.
“Sixty-eight percent of the respondents in Uganda say fraud is a major problem in their businesses, while 77% indicated that fraud will increase as criminals become more sophisticated, economic pressure and the Police’s inefficiency go up,†he said in a report he presented in Kampala recently.
Other causes of fraud are poor internal controls, collusion between employees and third parties, lack of control over management by directors and poor corporate ethics.