Don't Miss


Home   >   Goverment   >   African Fraud Barometer: KPMG Scores Nigeria, South Africa High

African Fraud Barometer: KPMG Scores Nigeria, South Africa High

By on November 26, 2012

 

The high profile economic status of South Africa and Nigeria came under scrutiny  when a recent report released by globally renowned auditing firm KPMG revealed that the two leading economies are among the most fraudulent countries in Africa.

This was the result of its  initiative the ‘African Fraud Barometer’ designed since April to measure the exposure and risk level of Nations to fraud in the continent with a view  to assessing its impact on the operations of corporations in the continent.

From the report monitored by the reporters 365.com Nigeria ranked number 1 in the incidence of fraud cases recorded in the continent. It stated that Nigeria, Kenya, Zimbabwe and South Africa make up 74% of all fraud cases reported in Africa. The impact and high level activities fraud were linked to Nigeria.

This report is coming at a time were Nigeria is aggressively pushing its economic agenda of becoming a major competitive nation in the world by 2020, through the strategic development of a conducive environment for increased Foreign Direct Investment (FDI) inflows in the country.

The fraud barometer was developed with a framework of capturing the prevalence of the vice on the continent , which is one of the major factors impeding socio-economic development and growth in the region.

Despite the establishment of the Economic Financial Crimes  Commission (EFCC) in the country and the indictment of some government officials and businessmen, the report still shows that there is a lot to be done in tackling corruption and fraudulent cases in the Nation.

Same can be said of the emerging Global economic player South Africa a member of the ‘BRICS’(Brazil, Russia, India, China, South Africa) economic elite group, that to sustain its international reckoning  it must tackle fraud intentionally.

The Barometer used for Nigeria according to the leading Auditing firm showed that fraud and misrepresentation had the highest cases at 37%, a decrease of 10% from the previous six months. Fraud analysis showed that Government had 18%, business people(15%) and employees ((14%).

Head of Risk and Consulting at the KPMG Nigeria, Mr Olumide  Olayinka  on the Nigerian predicament  said “The general belief that the legal system does not work in Nigeria is not effective enough”.

He further stated that “Public Opinion is  that fraud and corruption is increasing in Nigeria and may spill into other countries in the region”.