World fraud champs

Eco­nomic crimes of over $100m most ram­pant in SA

The Times (South Africa) - - FRONT PAGE - GRAEME HOSKEN

SOUTH Africa is the world leader in money-laun­der­ing, bribery and cor­rup­tion, pro­cure­ment fraud, as­set mis­ap­pro­pri­a­tion and cy­ber­crime.

For the first time in nine years, the preva­lence of eco­nomic crime is on the in­crease in South Africa.

And, ac­cord­ing to the In­sti­tute of Ac­count­abil­ity, the spread of cor­rup­tion is di­rectly linked to the demise in 2009 of the cor­rup­tion­bust­ing Scor­pi­ons, which were re­placed by the po­lice’s Hawks.

The Price­wa­ter­house­Coop­ers South African edi­tion of the Global Eco­nomic Crime Sur­vey, re­leased yes­ter­day, fin­gers se­nior man­agers as the No 1 cul­prit driv­ing the “mind-bog­gling” theft.

The re­port re­vealed that 77% of all in­ter­nal fraud was com­mit­ted by se­nior and mid­dle man­age­ment.

The pri­mary mo­ti­va­tion for se­nior man­agers was greed, while ju­nior man­age­ment tended to com­mit these crimes be­cause they per­ceived in­jus­tice.

77% of in­ter­nal fraud com­mit­ted by se­nior and mid­dle man­agers

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