Nairobi News

HustleWhat's Hot

Safaricom sack fraudulent and corrupt employees

Fraud and corruption remain big challenges for Safaricom, with the telco sacking 58 workers over the 12 months to March.

The company singled out asset misappropriation and fraudulent expense claims as its major setbacks in its sustainability report 2015.

“We conducted 29 investigations on fraud in 2015, compared to 89 the previous year. Four cases were forwarded to the police for public prosecution,” said the report released on Wednesday.

Safaricom went ahead to enforce disciplinary action against the staff involved in misconduct. The telco carried out 19 audit reviews to ensure effectiveness of internal controls.

For every fraud incident, the report shows, the company sent home two employees. The trend points to rising cases of internal fraud holding back many firms.

Together with over 10 other affected private sector players, Safaricom is seeking to sponsor legislation to help eliminate white collar fraud by penalising the perpetrators. The proposed law is set to borrow heavily on similar regulations in the US and Rwanda.

THEFT AND FRAUD

Safaricom CEO Bob Collymore said the new law would act as a deterrent to corporate theft and fraud. The regulations will draw in more members under an umbrella body “Businesses Against Corruption”.

The International Business Attitudes to Corruption survey 2015 states that gaps remain in investigation of internal fraud.

The report also calls on legal and compliance teams to look into the matter as it deters companies from getting a positive outlook by investors.

Safaricom last year terminated a multi-million dollar tender it awarded a Lebanese company, Mobinets SAL, citing bribery of its workers in the allocation of the contract.

Mobinets had just got a deal to supply, install and maintain a system to manage network planning, configuration tools, inventory and work flow.

Safaricom now plans to train its staff, suppliers and dealers on ethics and anti-corruption as it seeks to cultivate a positive image among its investors in Europe, who constantly demand an update on the company’s performance.

Source: Daily Nation