SA procurement fraud double global average - survey

| 0 Comments

 

Fraud.jpgA total of 59 per cent of South African respondents to the PricewaterhouseCoopers (PwC) Global Economic Crime Survey indicated that they had experienced procurement fraud, compared with the global figure of 29 per cent.


PwC director Louis Strydom described as "mind-boggling" the loss South Africa suffered owing to economic crime.


Of the 134 surveyed South African respondents, four reported losing more than R1-billion each through fraud, said Strydom.


In terms of financial losses below R1-million, South Africa ranks lower than global averages, but for losses between R10-million and R1-billion and above, South Africa ranks the highest, said Strydom.


Globally, governments accounted for 46 per cent of procurement fraud, followed by energy, utilities and mining (43 per cent) and engineering and construction (42 per cent).

 

SArespondentCrimes.jpgIn South Africa, vendor selection was the most targeted, said Strydom.


"Just look at how many projects meant to assist the poor fail because of the misappropriation of funds."


"Procurement fraud cannot happen if there are no internal players. To deal with economic crimes there must be a focus on management. If management doesn't advocate against such practices, we cannot beat it."


Fraud-risk management was the most effective means of detection, said Strydom, and South African companies were ahead of their global counterparts in this area.


"Worrying, though, is that 20 per cent of companies do not undertake risk assessments, with 18 per cent of culprits only receiving warnings, while 9 per cent of companies do nothing against perpetrators.


"It is encouraging that more South African companies (82 per cent) than their global counterparts (49 per cent) turn to law-enforcement agents to deal with (internal) culprits."


Externally, 63 per cent of culprits in South Africa were turned over to the police, versus 61 per cent globally.


Meanwhile, as much as 77 per cent of South African respondents reported experiencing asset misappropriation (69 per cent globally), and 52 per cent bribery and corruption (27 per cent globally).


Africa and Eastern Europe reported the highest prevalence of bribery and corruption (39 per cent), followed by the Middle East (35 per cent), Asia Pacific (30 per cent), Latin America (25 per cent), North America (14 per cent) and Western Europe (12 per cent), Strydom said.


Institute of Accountability director Paul Hoffman estimates that corruption has cost South Africa R700-billion over the last 20 years. Through government's tendering system, R30-billion is stolen annually through corruption.


Corruption would continue until the government developed the political will to appoint an effective, independent anti-corruption entity, said Hoffman.


"Currently we pursue a multi-agency approach. The problem with this in relation to corruption is that too much falls through the cracks, with no specific agency having the necessary clout to take on corruption in high places.


"The Hawks are not as effective as the Scorpions; they don't have the clout," said Hoffman.
 

Leave a comment


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the