orlando fraud and corruption in africa · sources of corruption in africa include lack of...
TRANSCRIPT
Proctor Nyemba, CFE, CICA, CFP, CICP
23rd ACFE CONFERENCE
ORLANDO
FRAUD AND CORRUPTION IN AFRICA
COMESA
19 countries
Will be 20 with South Sudan
FTA
Will move toward common currency
Free movement of people
A lot of cross-border trade
Moving toward Grand FTA with SADC & EAC to create biggest economic block with more than half of Africa
Economic Crime Includes
Fraud and corruption
Computer-assisted economic crime(crime
scene for fraud)
Smuggling
Illegal transfer pricing
Tax evasion
Why This Crime Is on the Rise
This is upon the African economic growth
especially in the oil and minerals industries
Zimbabwe has diamond industry, and the
problem is that growth promotes fraud
and corruption
Risk are very high because unstable legal,
political, and business environments
Why Fraud and Corruption
Are on the Increase
Poor corporate governance practices
Greediness
Lack of ethical standards
Cultural perception that bribery pays
Poor internal controls
Sources of Corruption in Africa Include
Lack of transparency and accountability in the public sector/private sector
Poor regulation of political contributions
Low public-sector wages
Weak enforcement of laws and regulations
Lack of management view
Lack of free and independent media
Excessive discretionary authority of public officials
Poor tone at the top
Lack of independent checks/audits and few Accounting Firms practicing as the {4 BIG FIRMS}
Internal Control Implications
Computer auditing
CISA
Focus on the computer environment of an entity
Firewalls
Access controls
Information systems health checks
Move toward CIO
Disaster recovery plans
Good Governance Framework
for Africa Procurement
Financial management
Disclosure
Civil society role
Complaints and remedies mechanism
Code of ethical conduct required
Sanctions
Africa's Cyber....Current Development Here are several reasons:
Lack of knowledge of information
technology by the populations
Absence of a suitable legal system
Inexistence of cyber-security structures
Absence of a framework for dialog and
coordination of strategies at the regional
level
CFE Strategies for Africa
Health Experts’ Approach
Is like AIDS
Strategies being done by the health
experts must be done CFE in Africa
New start centres
ARVS
Scanning
Good Governance
& Anti-Corruption
Fraud and Corruption
Is like AIDS
Strategies being done by the health
experts must be done by CFEs in Africa
New start centers, ARVS, and scanning
Computers have become crime scene in
Africa
Good Governance
& Anti-Corruption
What can you do?
13
“Whenever you are in doubt…recall the face of
the poorest and weakest man who you have
seen and ask yourself, if the step you
contemplate is going to be of any use to him?
Will he gain anything by it? Will it restore him to
control over his own life and destiny?...Then
you will find your doubts and your self melting
away.”
Mahatma Gandhi
CONCLUSION
Let us embrace change and manage it
so that we do not become victims of
change
Let us take advantage of the
opportunities presented by Regional
Integration
Technology is a game changer!!!
Questions ?
“Association of Certified Fraud Examiners,”
“Certified Fraud Examiner,” “CFE,” “ACFE,” and
the ACFE Logo are trademarks owned by the
Association of Certified Fraud Examiners, Inc.
The contents of this paper may not be
transmitted, re-published, modified, reproduced,
distributed, copied, or sold without the prior
consent of the author.