By Manqoba Makhubu | 2017-11-15
PERCEIVED opportunity and personal pressure has been cited as some of the key factors, amongst many, that drive fraud and corruption in most organisations.
This was disclosed by Swazi MTN Head of Business Risk Management, Sydney Mdluli, at the company’s head office yesterday.
He was speaking during a sensitisation meeting which was held as part of the company’s commemoration of the Fraud and Ethics Awareness Week.
He said though the legal definition of fraud varies from country to country, but in most cases the key elements are: dishonesty, deception, and the intention of obtaining an undue benefit; avoiding an obligation; causing loss to another party; removal of funds; or misrepresenting the financial position or affairs of the entity.
Mdluli described fraud as a ‘cancer’ that erodes companies’ assets.
Besides highlighting to management, staff and partners fraud reporting processes, Mdluli said fraud takes place in a triangle- perceived pressure, perceived opportunity, and rationalisation. He said each time a person commits fraud, s/he then rationalises the act.
“In my entire life, I have never seen a perpetrator of fraud remorseful. What actually happens is that they come up with explanations on what made them loot company resources,” explained Mdluli.
Setting the tone for this discussion was a keynote address made by Acting Chief Executive Officer Sibusiso Nhleko, who made a passionate address to Swazi MTN staff and few partners.
Nhleko indicated that Swazi MTN has adopted zero tolerance towards fraud and corruption.
Through numerous real-life examples in his address, Nhleko demonstrated how fraud, in all its different manifestations, is bad for any organisation.
“And, fraud has led to the collapse of numerous companies in Swaziland, and beyond,” he explained.
He challenged both MTN staff and stakeholders who do business with MTN to help the company combat fraud.
Swazi MTN has, for the first time, joined the world to commemorate Fraud Awareness Week.
This commemoration seeks to raise awareness across internal and external stakeholders, on what constitutes fraud, and how it may be reported for corrective action to be taken.
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