‘NGOs embezzling donor funds’

executive director Ms Mary-Jane Ncube said due to increasing cases of embezzlement and fraud in civil society, her organisation has created a compliance and risk management unit in a bid to mitigate corruption.
“The unit focuses on strengthening finan­cial reporting systems and institutional com­pliance to internal and external controls and founding governance documents such as Deeds of Trust and Constitutions.
“Institutions are also assisted in developing policies that increase accountability, trans­parency and recommendations generally come through a compliance monitoring review process,’’ she said.
Ms Ncube said it was the duty of directors to assure themselves that they are reasonably informed of material events concerning the corporation.
She said in Zimbabwe the sentences are not deterrent enough mainly because of the break-down in the accountability chain.
She said this happens in cases where man­agement is compromised by poor recruit­ment processes, no reference checks, past criminal behaviour not detected, cronyism and nepotism and gendered corruption.
Peace Security Company chief executive Mr Abel Mubango said fraud is usually moti­vated by pressures, opportunity and rational­isation.
“Business should seek to reduce the ele­ment of opportunity and all employees from top to bottom have a role to play in preven­tion of fraud.
“Fraud is corrosive — individuals who get away with it will try something bigger, other employees will feel justified to follow suit.
“A study conducted in South Africa revealed that 10 percent of employees will never steal, 10 percent will steal and 80 per­cent will follow the majority,” he said.
Mr Mubango said dollarisation has brought with it an increase in fraudulent activities by employees of companies.
Zimbabwe Institute of Management Mr Norman Hadzirabwi said the advent of new technologies such as the Internet and mobile services has changed the face of business dra­matically.
He, however, said the downside is that fraud and other white collar crimes have become a menace and organisations world over are facing more ethical issues. He said there was a need for more emphasis on ethi­cal and socially responsible behaviour.
The workshop, which was attended by leading businesspeople and auditors from around the world, was organised by a Zim­babwean company, Proctor and Associates.