In Thailand, the National Anti-Corruption Commission (the "NACC") has funded and organized, The Museum of Thai Corruption (the "Museum"), which is a roaming museum to raise the awareness of fraud and corruption in Thailand. The Museum showcases ten major alleged cases in Thailand over the last 15 years which includes: the rice subsidy scheme (in more detail below), corruption i...
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Fraud & Corruption Typologies
Despite increased enforcement of the US Foreign Corrupt Practices Act ("FCPA") and China's own commercial bribery laws, fraud and corruption remains rife across many industries in China, especially in the pharmaceutical and life sciences industry where the benefits of bribery still seem to outweigh the risks. The most common typologies being:
- Sales teams bribing doctors to purchase their products
- Fictitious sales and fake contracts
- Tendering fraud and bid rigging
- Off label use of pharmaceuticals
Author: Richard Batten LL.B (Hons), Barrister and Solicitor of the Supreme Court of Victoria and Director of Censere Group Co., Ltd
Richard is a Director with the Censere Group and for the past 20 years has been assisting clients in the Asia Pacific Region with Due Diligence investigations in a variety of Mergers and Acquisitions across different industries. His projects have included clients from China, Japan, India, Korea, Australia and the USA.
One of the significant trends in the Asia Pacific region over the last few decades has been the emergence in a number of countries of new or tightened laws on privacy of personal data or “Data Privacy”. This trend has created a particular challenge for forensic practitioners providing integrity due diligence services to clients seeking to mitigate their risk(s) before deciding on significant investments in the region. Not only does a forensic practitioner need to understand where and how to obtain relevant background information on a target company, and key individuals associated with the target, but is also required to have a sound knowledge of all data privacy laws and guidance in the jurisdictions relevant to particular due diligence projects.
Why people commit fraud
Financial stress is widely recognized as one of the key reasons why people commit fraud. Some people commit fraud for other, pathological, reasons, but these are small in number and not typically the kind of fraudsters we deal with daily.
However employees and suppliers who have had a long and trusted relationship with you may feel added pressures when there are dark clouds on the horizon. Presently with the price of oil, coal and other minerals at recent record low, many Resources and Energy Sector employers are looking to reduce costs to help mitigate any potential losses. Orders are down, inventories are being reduced, payment cycles are increasing; there is generally a greater level of uncertainty right now.
Your staff and suppliers may feel their position with you is threatened and start to worry about their short to medium term future. At the same time your staff and suppliers are seeking their cost of living and business costs increasing, with little they can do about it.
It is at exactly these times of economic uncertainty that your staff and suppliers will start to feel increased stress about how they will meet their own financial obligations. For many it is a lifestyle issue, for others it really is a matter of survival. Committing fraud is often seen as the only way.