Is South Africa too corrupt?
The Transparency International’s Corruption Perceptions Index for 2014 ranked South Africa 44 out of 100, where zero indicates a perception that a country is highly corrupt and 100 having no corruption at all.
Of the 175 countries scored on the index, South Africa ranked 67th.
There was no country which scored 100 out 100 on the index. However, Finland topped the ranking with a score of 92 out of 100.
Crime in South Africa
According to the PricewaterhouseCoopers (PWC) Global Economic Crime Survey of 2014, 69% of South African respondents indicated that they had experienced economic crime, which is nine percentage points higher than in 2011.
PWC highlighted that this has raised serious and valid concerns about the country’s standing, with some key South African institutions already showing characteristics of endemic corruption, which means that little can be done to turn around the rot.
The aim of the PWC report “is to inform South African business leaders about developments in the continuously changing landscape of economic crime in our country and to encourage debate around strategic and emerging issues in this sphere,” said Louis Strydom, the leader of the National Forensic Services.
Main perpetrators of corruption
The PWC report also shows that senior management is the main perpetrator of economic crimes committed by insiders.
The PWC survey also goes on to report that South African organisations suffer significantly more procurement fraud, human resources fraud, bribery and financial statement fraud than organisations globally.
According to the survey, bribery and corruption is the fastest growing economic crime in South Africa since 2011.
“In the current tough economic environment, fraudsters are becoming ever more creative and syndicates are also at play, which means companies are facing ever increasing risk from white collar crimes,” said Alicia Goosen, Business Unit Head for Financial Services Group at Aon South Africa.
These crimes are mainly in areas such as credit payments, EFT transfers, debtors, petty cash abuse, cash theft, international transfers, payroll fraud (ghost employees) and stock theft.
Featured What are the three phases of money laundering?
Money laundering seems like the kind of thing that’s only a concern in blockbuster films. However, South Africa is, in fact, considered a hotspot for money laundering. So, what does this actually entail, and what are the consequences of this illicit practice?
Asset repossession: What banks want you to know
When you’re facing financial strain, it can be difficult to keep up with your debt. Unfortunately, if you refrain from paying your debt, your creditors have the right to take legal action against you. This includes repossessing your assets. But before you hand them over, here’s what you should know.
How to spend a lumpsum for great returns
Imagine you win the lotto. Anyone in this position would be ecstatic! But once your excitement settles down, you’ll have to consider what’s the best thing to do with this money.
How to identify an investment scam
Many people invest a lot of money for their future and that of their offspring. Unfortunately, some of them never reap the benefits because the investments were scams. Luckily, there are ways you can find out if an investment opportunity is too good to be true.
Get 50% off your friend’s treatment at Mangwanani Spa
Price: from R250
When: Until 30 August
Where: KZN and JHB
Telkom LTE lockdown Deal
Price: R369 per month
When: Until 31 August 2020
Save up to 20% on your car insurance with MiWay
Price: Available on request