Commissions And Bribery Most Typical Woes...

[george]

'Commissions' and bribery most typical woes faced by Thai companies, survey finds

BANGKOK: -- Fraud represents a significant problem for almost all Thai companies and most of the culprits are operational staff, according to the results of a recent survey. But seven out of 10 firms also say they would not report the wrongdoers to police.

The survey was conducted jointly by the Stock Exchange of Thailand, the Institute of Directors and consultancy firm KPMG Phumchai Group.

It said the most common fraud among Thai listed companies was the soliciting of bribes and improper commissions.

KPMG has conducted similar studies on business ethics in Australia, Malaysia, Singapore, Hong Kong and New Zealand. Findings from the Thai survey were unveiled on Monday.

KPMG Phumchai President Khaisri Nuangsikhapian said the Thai survey was carried out in May, and covered 1,180 listed companies and the country’s top 500 firms.

The soliciting of improper commission payments and bribes was nominated as the top fraud issue for 32 per cent of firms polled; while financial and accounting fraud came second, named by 27 per cent of companies.

The firms surveyed identified inefficient internal checks and monitoring systems; collusion between staff and outsiders; and a lack of measures to promote work ethics as the key reasons for fraud within organisations.

The survey found that 86 per cent of wrongdoers were operational level staff, and 18 per cent mangers. Most fraud was also perpetuated by company insiders.

But 71 per cent of companies surveyed said that to protect their corporate image, they would prefer to investigate any fraud internally rather than handing the matter over to police.

Mrs Khaisri said 98 per cent of companies considered fraud a significant business problem. About 61 per cent of companies surveyed also claimed to have witnessed fraud within their organisations during the past two years, and 28 per cent of them said company executives remained indifferent to reports of fraud.

Mrs Khaisri said the survey findings were being published in a bid to motivate companies to increase their efficiency by preventing and combating fraudulent practices.

--TNA 2005-11-08