Fraud cases in Africa reach $10.8b in 2011 – KPMG

The value of fraud cases reported in Africa in 2011 reached $10.8 billion, according to the Africa Fraud Barometer 2011 published by accounting firm KPMG late April 2012.

South Africa is the hardest hit, followed by Nigeria.

The report showed that in the first six months of 2011, 355 cases of fraud were reported while the second-half in the same year recorded 165 fraud cases putting the total number at 520 cases which represented an increase of 46.47% of reported cases.

“The value of reported fraud in the first six months of 2011 was $7.170 billion. The value of reported fraud in the second six months of 2011 was $3.702 billion,” the report said.

KPMG found that employees committed most of the fraud. The rate of employee fraud rose 2% from 27% in the first six months of 2011 to 29% in the second half.

The highest value of fraud committed in the second half of 2011 was by Management at $1.2 billion with Professional Advisors committing the highest in the first-half valued at $3.3 billion, the barometer observed.

Governments were the hardest hit victim group by the fraud, despite the decrease in cases reported from 43% in the first 6 months of 2011 to 37% in the last six months of 2011.

The African country with the highest reported fraud cases was South Africa at 35% in the second half of 2011 up 2% from 37% in the first half of 2011, the report indicated.

Nigeria was second at 22% in the second half of 2011, against 25% it had in the first half.

By Ekow Quandzie