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Monday, November 26, 2012

NIGERIA IS THE MOST FRAUDULENT COUNTRY IN AFRICA – KPMG




Respected global audit and financial advisory firm, KPMG, has rated Nigeria as the most fraudulent country in Africa, with the cost of fraud during the first half of 2012 estimated at N225 billion ($1.5 billion).
The firm’s Africa Fraud Barometer, instituted this year, measures fraud on the continent and asses the fraud risk that confronts companies in their operations.
In KPMG’s second report, issued last Wednesday, it identified Nigeria, Kenya and South Africa as accounting for 74% of the total number of cases on the African continent, with Nigeria recording the highest overall value of fraud in the first half of 2012.
Reported cases of fraud, however dropped from 520 in the first half of 2011 to 503 in the first half of 2012, and the value of fraud fell from $ 3.3 billion to $ 2 billion.

KPMG compiles the data for the Africa Fraud Barometer by analysing available news articles and reviewing fraud cases from designated databases.
The new report observed that Nigeria’s fraud profile has been compounded by fraud and corruption in the oil sector, with “bribes in the private and public sector, misappropriation, and contract inflation” as common forms of fraud.
By contrast, Nigeria’s President, Mr. Goodluck Jonathan, last Sunday in his chat with the media bragged that his administration is fighting and winning the war on corruption, and that he has done better than his predecessors in combating corruption.
In another report, “Global States of Mind: New Metrics for World Leaders,” published on November 14, Gallop Poll declared Nigeria one of the two most corrupt countries in the world, superior only to Kenya.
Contrary to Mr. Jonathan’s claims, the Gallup report showed that 94 percent of Nigerians believe there is widespread corruption in the government.

Reference: KPMG

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