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KPMG has released its latest African Fraud Barometer which was launched last year and is released biannually.
Durban –
International legislation against fraud and the vital role being played by South Africa’s public protector had led to a decrease in fraud cases, according to the KPMG financial services group.
However, the country still has the highest number of reported fraud cases on the continent.
KPMG’s latest African Fraud Barometer – which was launched last year and is released biannually – found that the reported number of fraud cases in Africa decreased slightly in the first half of last year from the second half of 2011, costing $2 billion (R18.4bn) as opposed to $ 3.3bn.
Nigeria, Kenya, Zimbabwe and South Africa make up 74 percent of all fraud reported in Africa.
South Africa has the highest incidence in Africa, but this could be skewed by the size of the economy, the barometer found.
Furthermore, a vigilant media, “the essential basis for the Africa fraud barometer”, was also particular to South Africa, contributing to the reporting of fraud and corruption cases.
Recent police statistics also showed positive trends, Petrus Marais, KPMG’s global leader of forensics, said.
“We have also seen multinational legislation against fraud taking root in South Africa, forcing companies to be more accountable regarding fraud and corruption.
“They have to defend themselves and the potential impact on market capitalisation can be substantial. The legislation helps to constantly measure awareness of risks and to manage the risks themselves pertaining to operations of companies in South Africa and into Africa.”
Marais said more cases of fraud and corruption had also been reported in the public sector, with the public protector playing a vital role. However, the prosecution rate remained comparatively low.
The research also showed that while South Africa had the most reported cases of fraud, the value of these cases was less than the value reported for Nigeria, with the cost of fraud in Nigeria close to $1.1bn more than South Africa.
The four major types of reported fraud included: fraud and misrepresentation (37 percent); misappropriation and theft (17 percent); counterfeiting and forgery (14 percent) and bribery and corruption (18 percent).
The Mercury
