JOHANNESBURG - South African organisations continue to report the highest instances of economic crime in the world with economic crime reaching its highest level over the past decade, according to PwC’s biennial Global Economic Crime Survey released today.
The survey was presented to the media at the African Pride hotel in Melrose by Trevor White, Partner at Forensics Services PwC and Trevor Hills, lead partner for PwC’s Forensic Services Practice.
The amount of economic crimes being reported around the world showed that half of the top ten emerge from the African continent.
PwC said that South African organisations that have experienced economic crime is now at a staggering 77%, followed in second place by Kenya (75%), and thirdly France (71%).
The board and the CEO is held accountable when an economic crime is committed within the organization. #PwC @PwC pic.twitter.com/DZWN46fQR9
— Business Report (@busrep) February 27, 2018
The Global Economic Crime and Fraud Survey examines over 7200 respondents from 123 countries, of which 282 were from South Africa.
Trevor White said, “Economic crime continues to disrupt business, with this year’s results showing a steep incline in reported instances of economic crime. At 77% South Africa’s rate of reported economic crime remains significantly higher than the global average rate of 49%. However, this year saw an unprecedented growth in the global trend, with a 36% period-on-period increase since 2016.”
PwC further said that economic crime in South Africa is now at the highest level over the past decade.
It is also alarming to note that 6% of executives in South Africa (Africa 5% and Global 7%) simply did not know whether their respective organisations were being affected by economic crime or not.
The top ten countries that are reporting the most economic crimes from around the world.
“We have seen paradigm shifts in the way that businesses are being run. Notably, the accountability for fraud and economic crime has moved into the executive suite, with the C-suite increasingly taking responsibility, and the fall, when economic crime and fraud occur. Organisations are beginning to shed their denial complex regarding the many blind spots they have in identifying fraud and are learning how to address them,” White further explained.
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Trevor White, Partner at Forensics Services PwC speaking at the media briefing.
"The truth is that when businesses misbehave, investors often tend to look the other way as long as their investment is not threatened. The C-suite should be careful not to do the same. We often see that organisations can be easily lured into a false sense of security when scenarios appear to be rosy and when the ‘tone at the top’ appears to be consistent with the right words. What really counts is not tone at the top, but rather action at the top. The market may love disruptors or outperformers – but not enough to tolerate bad behavior,” Hills concluded.
Economic crime continues to be the most pervasive crime impacting SA’s organisations - whether it is fraud, corruption, financial irregularities or cybercrime. #PwC pic.twitter.com/a3fdNKYYiE
— Business Report (@busrep) February 27, 2018
The types of economic crime in SA and around the world. #Pwc @PwC pic.twitter.com/sOrQZCBgDM
— Business Report (@busrep) February 27, 2018
“What is concerning is that accounting fraud is committed by senior management.” #PwC @PwC
— Business Report (@busrep) February 27, 2018
This is a possible solution of cutting off fraud at the legs. #PwC @PwC pic.twitter.com/Ln9xQ2SZ9v
— Business Report (@busrep) February 27, 2018
“It’s possible to stop fraud and corruption in South Africa or significantly reduce it.” - #PwC @PwC