Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Kiwi businesses report less fraud, more procurement cons

Kiwi businesses report less fraud, but procurement cons affect 1 in 5, PwC says

By Suze Metherell

Feb. 20 (BusinessDesk) – One in three New Zealand businesses have been victims of fraudsters, according to a global survey, down from 49.5 percent in 2011, although procurement related fraud is on the rise, reflecting the rebuild of Christchurch and more companies doing business offshore.

PwC’s 2014 Global Economic Crime Survey asked more than 5,000 respondents in 95 countries, including 82 kiwis, about their experience with fraud. Of New Zealand businesses surveyed 33 percent said they had been the victim of fraud.

The decline in fraud compared with the 2011 survey partly reflects increased corporate vigilance in the wake of the global financial crisis and high-profile prosecutions including pyramid scheme fraudster Bernard Madoff in New York and Wellington financier David Ross.

“You can infer the lower levels of fraud are because there are more corporate controls since the GFC when they were stripped right back,” Eric Lucas, PwC forensic services partner told BusinessDesk. “There are quite reasonable levels of identifying fraud.”

He said despite the apparent decline kiwis must “maintain a watchful eye” as increased technology use gave more opportunities for would-be con artists. There had been an increase in tip off procedures, with 71 percent of surveyed companies reporting they had a whistleblowing mechanism within their company.

Procurement fraud had affected 19 percent of local businesses surveyed and ranged from playing favourites with tenders, taking kickbacks from suppliers or contractors and readjusting orders.

“It goes right through the supply chain,” Lucas said. “We included procurement fraud for two reasons, partly because of the Canterbury rebuild, and partly because a lot of organisations outsource parts of their business these days.”

“We are seeing more cases on the procurement side of businesses with fraudulent activity,” he said.

The other ‘big five frauds’ identified in the survey included 70 percent who had been victims of theft, 15 percent who had experienced bribery and corruption, 15 percent human resources fraud and 11 percent affected by cybercrime.

New Zealand has had a string of high-profile fraud cases in recent years. The Serious Fraud Office brought its investigations of 16 failed finance companies to a close in April last year, and is scheduled to complete the two remaining prosecutions this April. At November last year SFO said it had convicted and imprisoned 14 persons in relation to finance companies, and four people had been sentenced to home imprisonment.

The person most likely to commit fraud is a 31 to 40-year-old man who has been with the company for less than five years and is educated to a high school level or less. Of the organisations surveyed, 70 percent said fraud was committed by an employee of the company.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news