Media Releases

A 2012 KPMG survey in Australia and New Zealand on fraud, bribery and corruption found that $345 million had been lost through fraud during the previous two years, and that average fraud losses exceeded $3 million per entity¹. Some Australian public sector surveys also put the cost at millions².
 
A checklist has been released as a practical guide to assist public sector organisations to assess their current fraud and corruption prevention practices and identify areas for improvement.

IBAC Commissioner Stephen O’Bryan said public sector agencies and local councils that manage fraud risks well are more resistant to corruption.

“There have been a number of high-profile incidents of fraud and corruption in the public sector in recent years. The financial cost of fraud and corrupt activities can be large, as well as causing serious reputational damage and diminishing public trust,” Mr O’Bryan said.

“By definition, fraud and corruption involves deceptive and dishonest behaviour and can be difficult to detect. Agencies need to be proactive in identifying their fraud and corruption risks, putting in place appropriate controls to mitigate them, and raising awareness amongst staff about the risks and how they are managed.”

The impact of fraud can be difficult to reverse, underscoring the importance of implementing effective prevention strategies at all levels of an organisation. IBAC will also be holding a workshop on fraud prevention in the public sector in February next year. Registration details will be available on the IBAC website shortly.

References 

1. Source: A survey of fraud, bribery and corruption in Australia and New Zealand 2012, KPMG Forensic Australia, February 2013, page 4
2. Source: Fraud Prevention and Detection in the Public Sector, Office of the Auditor General Western Australia, June 2013, page 10