Rwanda: New report highlights increase in fraud by collusion
Fraud by collusion is increasing in Rwanda and threatens businesses, most especially in the banking sector, according to a new report from accountancy firm KPMG.Fraud by collusion is increasing in Rwanda and threatens businesses, most especially in the banking sector, according to a new report from accountancy firm KPMG.
In a speech on Tuesday in Kigali, country director John Ndunyu advised banks to improve the welfare of employees as one of the ways to help reduce fraud in the sector, the New Times report.
The report "Global Profiles of a Fraudster; White collar Crime-present and future" surveyed 15 banks in East Africa, including Rwanda. It found that the increasing cases of bank fraud could be resulting from poor remunerations, weak internal control systems, collusion at managerial level and a lack of skills.
According to the survey, executive directors committed the most fraud, amounting to 20 per cent of the cases last year. Around 60 per cent of frauds involved employees, with 70 per cent of cases being committed by collusion.
KPMG risk consulting director Willie Oelofse urged banks and organisations to provide incentives to encourage whistle-blowers to detect and minimise fraud.