Sh399.28 trillion lost globally per year due to fraud and corruption

At least Ksh 399.28 trillion (US$3.1 billion) is reported to be getting lost annually in 138 countries as a result of fraud and corruption, the chairperson of the Ethics and Anti-Corruption Commission (EACC) Dr David Oginde has said.

The figure quoted by the Association of Certified Forensic Fraud Examiners (ACFE) includes what is also lost in Kenya and Africa due to fraud and corruption.

Dr Oginde noted that in the realm of forensic fraud examination, the anticorruption watchdog extends beyond mere investigation. “We are the guardians of financial integrity, the protectors of truth, and the enforcers of justice,” he said.

Speaking today during a graduation ceremony of Certified Forensic Fraud Examiners (CFFE) at the Kenya Accountants and Secretaries National Examinations Board (KASNEB), Dr Oginde said the EACC work is to uncovers the hidden, clarifies the complex, and ensures that those who engage in deceitful practices are held accountable.

He said EACC’s journey has been rigorous. “We have delved deep into the intricacies of financial statements, mastered the art of interviewing and interrogation, and honed our skills in detecting and preventing fraud,” he said.

The lauded KASNEB for agreeing to start the course that he said would help equip investigators at the EACC and other bodies to join professionals in the country to fight and mitigate these losses.

In Kenya, the fight against fraud and corruption is carried out by many professionals like Certified Public Accountants (CPAs), law enforcement officers, Certified Internal Auditors (CIAs), CFEs, advocates of the high court, Fraud and Forensic Auditors, Risk and Compliance officers.

Other institutions that also help in the fight against the menace include the Certified Anti-money laundering specialists, Fund Managers, Cyber Security, and IT professionals.

“These are professionals who want to go beyond career advancement to becoming missionaries of change in the fight against fraud and corruption nationally and globally,” he said.

CFFE is a Post-Graduate course that was launched by KASNEB in July 2021. Oginde said the course was established at a good time when the government had the goodwill to fight fraud and strengthen institutional governance.

KASNEB chief executive officer, Nicholas K. Letting’ establishment of the course on its part was to provide skills necessary to support the country in the fight against corruption through the training of fraud examiners.

Since the course was launched in 2021, this is the second cohort for those who have graduated. Prof Letting said the graduates have successfully pursued the qualification that was launched in 2021.

He said graduates would fill a gap that exists in the integrity sector where all the investigative agencies need to have experts who have gone through the course.

“We’ve learned that attention to detail, critical thinking, and unwavering ethical standards are our most potent tools,” Prof Leting’ said. He said KASNEB owes a debt of gratitude to ACFFE chairperson Jane Mugo, who has guided the institution with her expertise and wisdom.

The CFFE has equipped us with the technical skills necessary for our profession and instilled in us the importance of integrity, diligence, and the relentless pursuit of truth.

He told the graduates that the challenges ahead were numerous, and the stakes were high adding that financial fraud is not just a crime against an individual or an organisation; it is a crime against society, eroding trust and undermining the economic fabric that holds us together.

Prof Leting’ said by preventing and uncovering fraud, we help create a fairer, more transparent, and more trustworthy world. This is our mission, and it is a noble one.

“Every Institution that is diligent and serious in fighting fraud and corruption requires a dedicated CFFE in the Audit and Risk Committees, senior leadership, compliance and any appointed forensic fraud task forces,” he said.