Business should do more to fight graft

While businesses are the most vulnerable and susceptible to corruption and fraudulent activities‚ they‚ in fact‚ should be the ones combating fraud and corruption within its management ranks.

These are but some of the observations that emerged during the International Fraud Awareness Week Seminar‚ hosted by eThekwini Municipality and organised by the Association of Certified Fraud Examiners (ACFE)‚ in Durban on Wednesday.

Speaking at the opening of the seminar‚ Sizwe Ntsaluba Gobodo managing director Peter Goss threw down the gauntlet to business‚ saying they know how the fraud and corruption starts as they are the one who sit in excos and boardrooms to make big decisions.

“We are leaders as business but not doers…business is noisy by being absent on corruption. They contribute nothing to fight fraud and corruption. I challenge a change in mindset of management and that starts with the business owner‚” said Goss.

He also decried fraud and corruption‚ saying it has a colour in the private sector - using the example of the construction and bread cartels‚ which got away with slaps on the wrist for their wrongdoing.

“Here I’m talking about a certain race group. There it is disguised as collusion‚ and not corruption. I can go on and on‚” he said.

Fielding questions later Goss said he would not be apologetic for his statement.

“I don’t know how to apologise‚” he said.

Goss said what was needed in the private sector was effective and ethical leadership and management that use and implement the world’s best models to prevent fraud and corruption.

“You cannot banish corruption without being transparent. The challenge we have is that we do not even know how much fraud and corruption is there‚ yet we choose our own terms‚” he said.

He added that all that was happening in the private and public sectors was scratching the surface.

“If CEOs and board chairs are not here we are scratching the surface and lying to each other and glorifying ourselves because real stealing happens in the boardroom. Sometimes as a manager‚ before signing off something‚ you should stop and ask if there’s no corruption in what you are signing.”

ACFE CEO Jaco de Jager agreed that business was vulnerable‚ and also threw the ball in its court - saying it should come up with measures that prevent and deter fraud and corruption.

“Business should not stop in creating awareness and business should have a hotline to report incidents of fraud‚” he said.

EThekwini Municipality’s head of the City Integrity and Investigations Unit‚ Mbuso Ngcobo‚ admitted that when he first joined the city corruption was rampant‚ but said they have been able to turn the tide against corruption and fraud.

“What’s encouraging is that the city has a clear stance on anti-corruption. It’s also encouraging that people are reporting fraud and corruption and we have concluded many investigations. Others have been referred to the SAPS‚ some people and businesses have been blacklisted as a result‚” he said.