The former Prime Minister of Fiji, the Honourable Laisenia Qarase, in his address to the Prime Minister’s Corporate Governance Summit in 2005 stated that:

“There is no quarrel about dealing with corruption as it is an obstacle to progress and the antitheses of good governance.

It is a stain on the integrity of a nation. And it hinders investment, slows growth, contributes to unemployment, leads to a reduction in living standards and reduces government revenues.

In our own case, the exact extent of it is hard to quantify because by its nature it is a shadowy and hidden thing, but reported investigations t

In a recent survey of fraud in Australian organisations, 84 percent of respondents agreed or strongly agreed with the proposition that fraud control is a governance issue.

In Fiji, it is even more important, because the whole fabric of society is affected by the level of fraud and particularly corruption that exists. The World Bank on their website states that: “The Bank has identified corruption as among the greatest obstacles to economic and social development. It undermines development by distorting the rule of law and weakening the institutional foundation on which economic growth depends. The harmful effects of corruption are especially severe on the poor, who are hardest hit by economic decline, are most reliant on the provision of public services, and are least capable of paying the extra costs associated with bribery, fraud, and the misappropriation of economic privileges.”

A recent case in South Africa proved the fraudulent and corrupt relationship between a Durban-based businessman named Schabir Shaik and South African politician and anti-apartheid leader Jacob Zuma and led to Shaik being sentenced to 15 years in jail. Concluding the sentencing proceedings in the Durban High Court on 7 June 2005, Judge Hillary Squires said:

"I do not think I am overstating anything when I say that this phenomenon [of corruption] can truly be likened to a cancer eating away remorselessly at the fabric of corporate privacy and extending its baleful effect into all aspects of administrative functions, whether state official or private sector manager. If it is not checked, it becomes systemic. And the after-effects of systemic corruption can quite readily extend to the corrosion of any confidence in the integrity of anyone who has a duty to discharge, especially a duty to discharge to the public.

One can hopefully discount the prospect of it happening in this country, but it is that sort of increasing disaffection which leads and has led on other parts of our continent and elsewhere to coups d'?tat or the rise of populace leaders who in turn manipulate politics for even greater private benefit ... This is the last step in a thousand mile journey."

The former Prime Minister of Fiji, the Honourable Laisenia Qarase, in his address to the Prime Minister’s Corporate Governance Summit in 2005 stated that:

“There is no quarrel about dealing with corruption as it is an obstacle to progress and the antitheses of good governance.

It is a stain on the integrity of a nation. And it hinders investment, slows growth, contributes to unemployment, leads to a reduction in living standards and reduces government revenues.

In our own case, the exact extent of it is hard to quantify because by its nature it is a shadowy and hidden thing, but reported investigations th

A recent case in South Africa proved the fraudulent and corrupt relationship between a Durban-based businessman named Schabir Shaik and South African politician and anti-apartheid leader Jacob Zuma and led to Shaik being sentenced to 15 years in jail. Concluding the sentencing proceedings in the Durban High Court on 7 June 2005, Judge Hillary Squires said:

"I do not think I am overstating anything when I say that this phenomenon [of corruption] can truly be likened to a cancer eating away remorselessly at the fabric of corporate privacy and extending its baleful effect into all aspects of administrative functions, whether state official or private sector manager. If it is not checked, it becomes systemic. And the after-effects of systemic corruption can quite readily extend to the corrosion of any confidence in the integrity of anyone who has a duty to discharge, especially a duty to discharge to the public.

One can hopefully discount the prospect of it happening in this country, but it is that sort of increasing disaffection which leads and has led on other parts of our continent and elsewhere to coups d'?tat or the rise of populace leaders who in turn manipulate politics for even greater private benefit ... This is the last step in a thousand mile journey."

The former Prime Minister of Fiji, the Honourable Laisenia Qarase, in his address to the Prime Minister’s Corporate Governance Summit in 2005 stated that:

“There is no quarrel about dealing with corruption as it is an obstacle to progress and the antitheses of good governance.

It is a stain on the integrity of a nation. And it hinders investment, slows growth, contributes to unemployment, leads to a reduction in living standards and reduces government revenues.

In our own case, the exact extent of it is hard to quantify because by its nature it is a shadowy and hidden thing, but reported investigations t

A recent case in South Africa proved the fraudulent and corrupt relationship between a Durban-based businessman named Schabir Shaik and South African politician and anti-apartheid leader Jacob Zuma and led to Shaik being sentenced to 15 years in jail. Concluding the sentencing proceedings in the Durban High Court on 7 June 2005, Judge Hillary Squires said:

"I do not think I am overstating anything when I say that this phenomenon [of corruption] can truly be likened to a cancer eating away remorselessly at the fabric of corporate privacy and extending its baleful effect into all aspects of administrative functions, whether state official or private sector manager. If it is not checked, it becomes systemic. And the after-effects of systemic corruption can quite readily extend to the corrosion of any confidence in the integrity of anyone who has a duty to discharge, especially a duty to discharge to the public.

One can hopefully discount the prospect of it happening in this country, but it is that sort of increasing disaffection which leads and has led on other parts of our continent and elsewhere to coups d'?tat or the rise of populace leaders who in turn manipulate politics for even greater private benefit ... This is the last step in a thousand mile journey."

The former Prime Minister of Fiji, the Honourable Laisenia Qarase, in his address to the Prime Minister’s Corporate Governance Summit in 2005 stated that:

“There is no quarrel about dealing with corruption as it is an obstacle to progress and the antitheses of good governance.

It is a stain on the integrity of a nation. And it hinders investment, slows growth, contributes to unemployment, leads to a reduction in living standards and reduces government revenues.

In our own case, the exact extent of it is hard to quantify because by its nature it is a shadowy and hidden thing, but reported investigations t

One can hopefully discount the prospect of it happening in this country, but it is that sort of increasing disaffection which leads and has led on other parts of our continent and elsewhere to coups d'?tat or the rise of populace leaders who in turn manipulate politics for even greater private benefit ... This is the last step in a thousand mile journey."

The former Prime Minister of Fiji, the Honourable Laisenia Qarase, in his address to the Prime Minister’s Corporate Governance Summit in 2005 stated that:

“There is no quarrel about dealing with corruption as it is an obstacle to progress and the antitheses of good governance.

It is a stain on the integrity of a nation. And it hinders investment, slows growth, contributes to unemployment, leads to a reduction in living standards and reduces government revenues.

In our own case, the exact extent of it is hard to quantify because by its nature it is a shadowy and hidden thing, but reported investigations t

The former Prime Minister of Fiji, the Honourable Laisenia Qarase, in his address to the Prime Minister’s Corporate Governance Summit in 2005 stated that:

“There is no quarrel about dealing with corruption as it is an obstacle to progress and the antitheses of good governance.

It is a stain on the integrity of a nation. And it hinders investment, slows growth, contributes to unemployment, leads to a reduction in living standards and reduces government revenues.

In our own case, the exact extent of it is hard to quantify because by its nature it is a shadowy and hidden thing, but reported investigations that are on-going and case before the courts indicate the urgent need for vigilance against corruption.”

What is the level of fraud and corruption in Fiji? Transparency International Chairman, Hari Pal Singh, made a good point when he called for a national study to gauge the extent of corruption in Fiji.

Having been involved in coordinating the KPMG fraud surveys of Australia and New Zealand whilst working for KPMG Forensic, I can say confidently that they are a good starting point for discussion, as long as the survey is done independently by someone who has built trust and can be relied onto protect the confidential information that should be provided as part of such a survey.

In other words, no individual organisation should be named and shamed. That should not be the purpose of the exercise. If senior management of corporations and CEO’s of Government Departments and Statutory Authorities do not have that confidence, they will not respond. It is that simple. Then the value of the survey would be diminished. I believe that such a survey should be done regularly in Fiji, possibly every two years and cover as many organisations as possible. The support and encouragement of leading industry bodies such as the Fiji Institute of Accountants, the Fiji Employers Federation and the Fiji Islands Hotel and Tourism Association would certainly help with gaining credibility with members and encouraging their participation.

Corporate governance is an entire culture that sets and monitors behavioural expectations intended to deter the fraudster and the corrupt. As part of the establishment of sound corporate governance, it is now clearly accepted that an organisation, whether public, private or not for profit, should formulate a fraud and corruption control strategy. Through the development and implementation of the strategy, compliance with anti-fraud and corruption control practices can be promoted, maintained and instances of fraud and corruption control non-conformance identified and dealt with quickly.

This article will discuss ways that all three sectors in Fiji can effect positive change. Whether it is to their bottom line, expenditure on public goods or positive outcomes for the disadvantaged

What is a fraud and corruption control strategy?

It is a comprehensive summary of key elements that the organisation has introduced to prevent, identify, manage, investigate and deal with fraud and corruption specific to its own circumstances. According to the Australian Standard AS8001-2003 , although an organisation’s approach to its strategy will be dependent