Employers told not to shield staff involved in corruption
Fraud experts have cautioned companies against covering staff malfeasance and corruption, asserting the practice was entrenching graft in the private sector.
It follows revelations that most firms are not reporting fraud cases to law enforcement in a bid to avoid bad publicity.
But Jubilee Holdings CEO Julius Kipngetich warned that dealing with graft internally will not help seal revenue leakages poking holes in the balance sheets of most enterprises.
He said most companies look at fraud prosecution from a reputation standpoint, but this is a criminal act, adding: “Let us not hide behind reputation, if someone has committed an offence, bring them out to face the law.”
Kipngetich made the remarks during the ongoing Fraud Awareness Week in Nairobi .
“A lot of times the company wants to sweep it under the rug and make the person disappear because they don’t want negative publicity.”
Big corporates have not prosecuted fraud fearing their shares will take a hit if investors and customers learn that poor controls left it vulnerable to internal fraud.