Businesses View Fraud As a Risk

Released last week, EY’s survey titled ‘The Namibian Fraud amp Corruption Landscape’ shows that 79 percent of Namibian businesses view fraud and corruption as a big risk to their operations.

Executive management and risk management staff of 90 Namibian companies were surveyed for their views on fraud, bribery and corruption in Namibia and their efforts to mitigate these risks. “The percentage of respondents that view fraud and corruption as a big risk to their business, together with the indication that 76 percent suffered incidents of fraud and corruption in the last three years and 64 percent feel that their businesses are not adequately protected against fraud and corruption underscores the key conclusion of the survey: Protect your business: make prevention a priority,” says Hans Hashagen, Partner for Fraud Investigation amp Dispute Services of EY Namibia. According to the survey the most prevalent schemes in Namibia are asset misappropriation, procurement and tender fraud and corruption and bribery.

Respondents further indicated that procurement, cash and stock are the most vulnerable areas in their business. Twenty-seven percent of respondents indicated that they have been requested to pay bribes in the course of doing business in Namibia, while 58 percent indicated that they are aware that bribes are being paid in their industry. Respondents also reported 2776 incidents of fraud and corruption over the last three years. Despite the fact that a high percentage of businesses view fraud and corruption as a big risk and have fallen victim to it, 51 percent of respondents indicated that they have no pro-active fraud risk management programme in place andor they respond to fraud and corruption reactively. According to EY, practical steps that businesses can take to prevent fraud and corruption include educating their management and employees on what fraud and corruption is and how to identify the red flags that could indicate that fraud and corruption is taking place in a business. “Appropriate fraud prevention policies and a tone of zero tolerance from top management is very important. In addition, an anonymous reporting mechanisms and regular fraud risk assessments go a long way in empowering businesses in the fight against fraud and corruption,” cautioned EY. By Staff Reporter

Source : New Era