Occupational or Employee Fraud poses a significant threat to organizations, as fraud trends indicate a rise in the occurrence of this category of fraud. Occupational fraud can result in organisations being exposed to significant financial and/or reputational risks. The recent economic crisis has resulted in even further increased fraud risks, which threaten businesses across the globe.

The ACFE’s (Association of Certified Fraud Examiners) 2008 Report to the Nation on Occupational Fraud and Abuse estimates that:-

• U.S organisations lose 7% of their annual revenues as a result of occupational fraud.
• Asset misappropriation and corruption were the most commonly reported categories of occupational fraud.

According to a study released by the ACFE during 2009 on the impact of the economic recession on the occurrence of fraud, of the 507 CFE’s (Certified Fraud Examiners) surveyed:-

• 55% of the respondents surveyed observed an increase in the number of frauds perpetrated since the start of the economic recession, 49% of the respondents surveyed observed an increase in the Rand value losses arising from frauds perpetrated since the start of the economic recession.

As employees are faced with growing personal financial pressures, they are increasingly likely to succumb to the temptation of accepting incentives or bribes offered by criminals to assist them in committing frauds against their employers, or seek opportunities to defraud their employers on their own.

It is therefore essential that organisations adopt a recruitment strategy that is aimed at attracting not only adequately skilled and capable personnel, but also individuals who conduct themselves in a highly ethical manner. Comprehensive background checks are an important fraud prevention method, which should be performed as part of the recruitment process for all job applicants.

By Jane de Klerk (B Compt. (Hons); B Proc)

I have been inundated by the question “What do you predict the job market is going to look like in 2010 for school leavers and professionals?”. Considering I don’t have a crystal ball (that works!) and considering all the economists in our country cannot even agree on whether or not we are actually out of the recession – I’m left to guess!!

Perhaps it is best to stick to facts and to rather give an opinion :-)

Whilst some economists tell us that the recession is over, others believe we are still on the tail end of it. The technical recession appears to have ended, primarily due to governments investment in roads, railways and stadiums for the World Cup. Despite this, the cautious buying behaviours formed during the recession are probably going to continue long after the recession is over. This applies to many businesses too, which naturally affects their manpower budget. We are seeing this specifically in those industries hardest hit by the recession in 2009.

South Africa’s current unemployment rate is 24.5%. Close on a million people had lost their jobs within the year by September 2009. According to the most recent Manpower Employment Outlook Survey, 12% of employers expect to increase their worker headcount and 11% of employers expect to decrease their worker headcount. Personally, I believe we will see an increase in headcount, perhaps more noticeable in the latter part of 2010.

Matric results released on Thursday show a 1.8% point decline in the National Senior Certificate exam pass rate to 60.7% for 2009 matriculants. Oi Vey!!! Poor results were achieved in Mathematics and English - core subjects!! I believe it is common knowledge that there is a clear gap between the current standard of secondary education and the competency requirements of employers.

Mentorship programmes in the workplace do address this issue to a certain degree. The fact is that there has been little opportunity for mentorship programmes in 2009, as employers were employing only essential personnel. It is doubtful that this is going to change much in the first half of 2010. The really sad part is that, in my opinion, many SETA’s are not as they should be - they could assist in this regard!! ...... But, that is another subject entirely on its own :-)

Most mentorship programmes have entry level skills requirements, such as computer literacy, which most school leavers do not possess at the level required. School leavers are therefore encouraged to do additional courses in computer literacy, administration, basic accounting and communication in order to be able to fulfil the minimum requirements for basic work opportunities. The sooner they do this following Matric, the better. Gaining any kind of work experience, even promotional work is better than no experience. School leavers are vying for the same/similar positions as University graduates and don’t possess the same skills.

University graduates stand a better chance of finding employment due to graduate programmes being made available.

Having mentioned the above, gradual recovery in the economy and the prospect of a successful World Cup, should push up business confidence this year. We have already started seeing an increase in activity.

In closing, my advice is.............. Do not get caught up in the web of negativity. Society loves to sensationalise everything, especially the negative issues and large conglomerates love to “box” people in. I personally believe that there is an opportunity out there for each and every individual who is prepared to work hard, has a good work ethic, is prepared to make a valuable contribution, is self driven, self motivated and focussed.

Optimistically in-Sync, Nicole

Pretoria - Labour Minister Membathisi Mdladlana says South Africa will use the Chinese delegation's visit to the country to learn more about job creation.
Speaking at a meeting with his Chinese counterpart in Cape Town today, Mdladlana said South Africa wanted to learn vital strategies of job creation from the Asian country as it also faced the same unemployment crisis.

He said South Africa will maintain its relations with China in a bid to halve unemployment by 2014.

The minister said relations between South Africa and China will continue in line with the countries' growing influence on the international arena.

Cape Town - Government's Cluster on Social Protection and Community Development had completed the drafting of the Consolidated Government Document on Comprehensive Social Security.

The Director General of Social Development Vusi Madonsela said following a framework approved by Cabinet in 2003, the country was moving towards a mandatory retirement scheme which would cover a "sizeable" part of the population that earned above a certain threshold.

"The fundamental principle is that it allows ...
the working population to participate in retirement in order for them to save for their retirement in order for them to prevent the possibility of poverty in old age," explained Madonsela.