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Fraud Statistics In SA
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Click here to view a video that explains corruption and fraud taint South African businesses.
Phomello Molwedi Reporting On Workplace Fraud Statistics As Published At The National Bargaining Council Summit, June 2006
According to a survey report presented during the National Bargaining Council summit in June 2006, it was found last year that 83 percent of South African companies reported fraud, while globally only 45 percent were targeted by white-collar crime. This means that South African companies are twice as likely to be defrauded as their international counterparts.
These statistics confirmed the trend shown in a similar 2003 survey when 71 percent of local companies had fallen prey to swindlers, compared to 37 percent globally.
"Despite efforts by organisations and legislators to secure company and state assets, white-collar crime is, unfortunately, one of the most serious threats to the stability of the economy. It is estimated that the South African economy loses about R40-billion to white-collar crime a year," the report says.
It points out that according to official statistics of reported cases, more than 29 000 cases with an estimated cost of more than R7-billion were under investigation by the commercial branch of the SA Police Service.
About 80 percent of these cases involved fraud, while the other 20 percent included theft from employers.
In his address to the summit, Richard Horner of the Governance Institute said the involvement of organised crime syndicates in commercial crime had increased significantly over the past few years.
"More than 30 percent of all business failures are caused by commercial crime and about 75 percent of fraud is committed by employees of a company. Companies and businesses with fewer than 100 employees are most at risk as the majority of fraud cases in South Africa stems from theft by employees of small-to-medium-sized businesses," said Horner.
He added that in order to try to prevent theft and corruption; companies should consider creating a set of values that would cultivate an ethical business environment.