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| News » Litigation and Dispute Resolution » Fraud costing construction industry |
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17/09/2008
Fraud costing construction industry |
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Theft, mismanagement and corruption have blighted the construction industry over the past three years and has cost almost £8 million, new statistics have revealed.
A survey carried out by risk consultancy firm Kroll found that 95 per cent of construction companies had been the victim of fraud - amounting to an increase of 85 per cent.
The most common type of fraud that companies were exposed to was theft of physical stocks or assets, which was reported by 32 per cent of companies.
Some 31 per cent of companies questioned said they had been the victim of financial mismanagement, while 28 per cent listed corruption and bribery as problems they had suffered.
Blake Coppotelli, Kroll senior managing director in business intelligence and investigations, explained that the problem may simply get worse as a result of the credit crunch.
He warned: "Despite some success at reducing certain types of fraud, the construction sector is vulnerable to an array of fraud. Companies must address this more aggressively now to reduce their risk and improve their business operations."
A recent report by Ernst & Young found that almost a quarter of senior executives had said their organisation had been approached to pay a bribe to retain or win business. |
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