Last week I was discussing fraud and corruption in business in Australia with a friend who works in Kordamentha’s Forensic division. I was staggered to find out that even in today’s world with systems with checks and balances, most businesses over $1B in revenue lose almost 10% of that amount ($100M) each year to theft. This “theft” includes fraudulent activities, corruption, and simple theft of goods. PWC’s Global Economic Crime Survey/ Australia Report identified Procurement Fraud in the top 5 of all economic crimes, with 30% of Australian respondents experiencing this type of fraud in the 24 months leading up to the survey, 7 % above the global average.
Remember Joel Barlow?
In 2001, Joel Barlow changed his name to Hohepa Hikairo Morehu-Barlow by deed poll when in New Zealand. He then moved to Australia in 2003. It wasn’t until almost 10 years later that his name was being splashed over news papers across Australia for all the wrong reasons. Over the period of about 3 years, he stole over $16M from Queensland Health. He lived a life well beyond the means of a Qld Health employee and to cover for this, he told people he was a “Tahitian Prince”.
How he did it falls right into the realm of procurement. He setup a fake company and starting making payments to it. The scary thing is that he probably would have got away with it, if only he didn’t try to steal $11M in one hit. This set off some red flags which eventually lead to his arrest. To read more about Joel go here.
Corruption in Supply Chain: A CIPS QLD Event
On Thursday 27th October, 2016 (next week), CIPS Queensland will be holding an event titled Corruption in Supply Chain. The event is to a panel of experts from Transparency International, Griffith University and BHP to review recent examples of Corruption in the Supply Chain and to explore the value of a holistic risk management approach.
Drinks and food provided.
|Title:||Corruption in the Supply Chain|
|Date:||Thursday 27 October 2016|
|Venue:||Novotel (Brisbane) : Open in Google Maps|
|Fee:||CIPS Members – $18.00 per person
Non-members – $25.00 per person
|Start Time:||5:30pm for 6:00pm start|
|Book Online:||CIPS Website – Booking|