Fraud in Botswana is on the increase with reference to both the frequency, the volume and the sophistication of techniques employed by criminals today. The Botswana Police Service (BPS) as well as the Directorate on Corruption and Economic Crime (DCEC) are flooded with cases pending investigation. With limited resources, in terms of skills and numbers, the time it takes to conclude investigations is lengthy and causes frustration to individuals, companies and government departments who find themselves victims of fraud and corruption.
In Botswana, Common Law fraud is defined as; – “Fraud consists of unlawful intentional making of a misrepresentation which causes actual prejudice or which is potentially prejudicial to another”.
There are many different types of fraud which include identity theft, forgery, conflict of Interest, lending fraud, ATM card fraud, cheque fraud. Simply put fraud is any intentional act designed to deceive or mislead others to their detriment.
People who commit economic crimes especially fraud are motivated by both need and greed or a combination of both. Today the pressures of daily living are increased and people tend to attempt to live beyond their means. A concerning factor in the youth is a growing sense of entitlement which fuels economic crime in many sectors. Companies with lax internal controls increasingly find themselves victims of fraud, simply because their structures allow for opportunity. These opportunities are created when companies have ineffective controls, deficient procedures and processes, do not enforce controls effectively, where there is poor or no monitoring and a lack of segregation of duties resulting in blurred role clarity. This totally compromises individual accountability within organisations.
Today there are many companies in the workplace that offer specialised investigative services for victims of fraud. One is no longer limited to simply reporting cases to the relevant law enforcement agencies. So what are the pros and cons of using a private investigation company to resolve your case?
RESEARCH THE PROFILE OF THE COMPANY YOU EMPLOY
It is important to research the credibility and integrity of the company you employ to conduct your investigations. There are many “fly-by-night” security firms out there that lack both experience and integrity! Engaging a private company is always a risk. Investigation by its very nature, involves an in-depth analysis of information, some of which may be very sensitive and valuable. The Investigators and the forensic auditors in the employ of the investigative firms will have access to your confidential information and it is important that they be properly screened beforehand by the firm concerned. On the other hand, should it be justifiable, you could create a forensic department within your organisation but this is costly and will seldom be used continuously, making this option by enlarge unnecessary. Today many of the larger banks have opted to create in-house forensic units as they are continuously targeted by fraudsters and can justify the associated cost.
THE PRO’S AND CON’S
Creating forensic investigation departments within your organisation may undermine the morale of employees, causing them to feel that they do not have your confidence and trust. On the flipside contracting a specialist firm to conduct you investigations means that they are onsite for the time it takes to conclude the investigation and prosecution of offenders, after which your company can return to normal functioning.
Costs can be contained by obtaining a quote for services that you require to conclude the investigation. It is important to understand the costs of running an investigation in order to avoid conflict with the company you contract at a later stage. It may be a good idea to provide them with the terms of reference for the investigation upfront in order to avert excessive costs.
When contracting an investigation firm, unlike, simply reporting fraud to BPS and DCEC, timeframes for the investigation can be stipulated and included in contracts upfront, making companies accountable if and when deadlines are missed. The fact that timeframes can be established and investigations concluded more rapidly allows the victim company to respond timeously to the results of the investigation and plug the holes that have been highlighted. Chances of successful prosecution are enhanced by the focused and more rapid completion of investigations.
The case loads of investigators involved in fraud and corruption cases are on the increase worldwide, and Botswana is no exception. According to the 2009 DCEC Annual Report, the caseload stood at 24 cases per DCEC officer compared to the international standard of 10 cases per officer, more than twice the recommended caseload. The 2012 DCEC Annual Report still highlights the high caseload as one of the biggest challenges for the department. In 2009, DCEC received 1926 reports, of which 671 were classified under fraud and corruption. For the year 2012, there were 2346 reports received by DCEC, of which 507 were classified under fraud and corruption. The Annual Report also indicates that as of that year the cumulative number of fraud and corruption cases under active investigation stood at 1476, thus adding to the already heavy caseload per officer.
As a result cases often do not get the personal attention that we as civilians believe they deserve. This can be very frustrating for us, however it is just as frustrating for often overworked and overwhelmed police officers. One of the obvious benefits to employing a reputable investigation firm, is that you can be assured, that your case will be the subject of a focused investigation with little or no distraction with reference to other demands being made on investigators.
With government departments competing for resources, financing the training and up skilling of fraud and corruption investigators presents a challenge. Investigators often need to have a specialised background and training in accounting and finance as well as the investigative techniques needed to solve these often highly complicated and sophisticated crimes. Additionally investigators need to be skilled with reference to both interviewing and interrogation techniques, being able to employ either as the situation requires. Furthermore they should understand the application of the criminal procedure and evidence code as it applies to investigation and the correct processes and procedures in the gathering of evidence. Similarly they need to remain abreast of new developments and precedent setting cases in the courts. This training is costly and private companies are often better placed to finance training. Also the availability of quality, specialised training courses on fraud investigation is scarce, presenting unique challenges.
The team selection on investigations that are outsourced is usually specific to the requirements of that particular investigation and its needs. This team selection is based on selecting personnel with the right skills in order to conclude the investigation expeditiously and cost effectively.
The procurement of advanced investigative and fraud combating technologies and programmes available presents an ongoing challenge for government investigative agencies. The procurement process is lengthy and slow and depends on budgetary allocations. Private firms on the other hand have the ability to act swiftly, staying abreast of technological developments with reference to investigative tools which assist in most areas of fraud investigation, as well as the profiling of organised crime syndicates and individual offenders alike.
Quality information, due to technological advances, is today available to investigators at the push of a button. This assists in speeding up investigation time and minimises human resources resulting in the reduction of the cost of the investigation. If the use of advanced technologies in fraud detection is publicised within the victim company, this may contribute significantly to deterring potential offenders, who might just think twice about committing planned fraudulent acts.
At the end of the day no company is immune to becoming a victim of fraud, corruption or other wrongdoings. To this end it is important to develop and have a response plan readily available for dealing with fraud and corruption. This plan should include sourcing reputable investigative firms ahead of time.
Criminologists, due to their extensive knowledge of the causes, explanation and prevention of crime, have an imperative role to play in the control of crime in the commercial environment. Employing a criminologist to supervise or oversee your investigation or to act as liaison between the relevant law enforcement and prosecuting agencies may expedite successful prosecution. They may further assist by compiling victim impact assessments for presentation in aggravation of sentence, resulting in maximum sentences for successfully prosecuted offenders. Another benefit to your company would be that additional vulnerabilities and risks may be brought to your attention and can be proactively addressed, saving you millions.
To this end Attorney Tshepiso Lediretse and I have established a consulting firm – Expert Profiling contactable on Tel: 390 9957 email – [email protected] or [email protected] or on Twitter @LauriePieters which is ideally placed to assist. I would like to thank Mr. Tymon Motlhasedi Katlholo (Former Director of DCEC) and Mr. Molebeledi Oagile of Tyedo Anti-Corruption Consultants and Forensic Investigators, contactable on Tel: 393 6695 for their assistance in the researching of this article.
