Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Charities robbed by gambling fraud

February 11, 2008

Charities robbed by gambling fraud

Staff with gambling problems are stealing millions of dollars a year from not-for-profit organisations.

Research carried out by BDO Kendalls for it's "not-for-profit fraud survey 2008" of organisations in Australia and New Zealand revealed that 53% of the money stolen in the sector was to fund gambling.

This compares with the 22% of fraud and theft to finance gambling that the 2006 KPMG forensic fraud survey of business found.

People working in the not-for-profit sector who stole to fund their gambling took an average amount of $180,643 which is significantly higher than for any other reason.

On average $45,556 was stolen by people to maintain a desired lifestyle and $13,150 stolen because of financial pressures.

The report also notes that losses are unlikely to be recovered from a person with a gambling problem because they will have minimal funds available. In contrast a person who commits fraud to maintain a lifestyle may have assets such as a house, a car or a boat that can be utilised to recover the loss.

John Stansfield, CEO of the Problem Gambling Foundation, says he knew the figure would be high but is shocked that gambling related fraud is hitting charities even worse than the private sector.

"Effective charities are very dependant on trust," he says.

"The public and funders need to have confidence that they are using funds wisely and clients need to feel the organisation helping them has integrity.

"Charities are able to deliver results that neither the public nor private sector can partly because they develop a culture of trust, understanding and co-operation both internally and externally."

"Fraud and theft by employees undermines these relationships and poses a real threat to credibility and effectiveness of the whole not-for-profit sector."

Mr Stansfield challenges the idea that gambling funding can be cleansed by using it for charitable purposes.

"Let's look at what's happening here," he says.

"Problem gamblers impoverish themselves and commit crimes to pay for their gambling. They often end up going to charitable organisations for help.

"Some of these charitable organisations have become dependant on gambling funding. At the same time some of their employees are developing gambling habits and stealing off them to meet their losses.

"It's a perpetual cycle of harm where individuals and families are being hurt and community organisations are placing themselves in moral jeopardy and at risk of undermining both public confidence and their internal culture of trust.

"The only winners are the gambling operators who continue to clip the ticket on each transaction regardless of the consequences."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>




Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>


Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>


Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>


Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>


Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>


(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>






Featured InfoPages

Opening the Election