Business | Investment
Fraud levels in GCC firms 'alarming'
An estimated Dh1.5 billion has allegedly been lost to fraud by companies in the GCC in the last year and the phenomenon is reaching alarming levels, KPMG said on Wednesday as it released its 2008 Fraud Survey.
- By Natasha Marrian, Staff Reporter
- Published: 23:56 October 22, 2008
Dubai: An estimated Dh1.5 billion has allegedly been lost to fraud by companies in the GCC in the last year and the phenomenon is reaching alarming levels, KPMG said on Wednesday as it released its 2008 Fraud Survey.
The startling estimate was based on recent largely publicized cases of fraud which have emerged in the region ranging from alleged swindling by investors at Al Boom Holding, alleged embezzlement at Etisalat, the Abu Dhabi investment scam to banking fraud.
The figure is an estimate based only on amounts which were reported upon. The value of other cases such as alleged financial irregularities by a Tamweel employee and alleged bribery at Nakheel were unknown.
The survey of around 1,000 companies in the GCC found that fraud had increased by 43 per cent compared to the audit firm's 2004 report which recorded a 37 per cent increase.
Participants were also rather pessimistic about whether the levels of fraud would decline with only 16 per cent saying it would and 59 per cent believing it would increase even further in the next two years.
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