• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

Fraud cost Africa $10.9bn in 2011

Apr 26 2012 08:18

Johannesburg - Bribery, theft and other kinds of fraud cost African governments and companies at least $10.9bn last year, auditing firm KPMG estimated in a study on Wednesday, a sobering reminder of the challenges facing the fast-growing continent.

KPMG said it arrived at the figure after scouring English-language news reports and databases of fraud cases from 2011.

The actual cost of fraud is likely much higher, given that the study was limited to information in the public domain, said Petrus Marais, a forensic investigator with KPMG.

However, he said many governments appear to be making headway in fighting fraud and other types of corruption.

“There is a strong sense that the tide is turning. More and more countries are making combating corruption an issue of government.”

The inaugural “Africa Fraud Barometer” found a total of 875 cases of fraud in Africa last year.

Management were responsible for $4.5bn worth of fraud, or 40% of the total for the year.

Governments and the public sector were the most frequently impacted by fraud, accounting for 44% of all cases in the first half of 2011 and 39% in the second half.

South Africa and Nigeria had the highest number of reported cases.

The role of a free press in digging up corruption is critical to fighting fraud, Marais said.

kpmg  |  africa  |  corruption  |  fraud


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote