Corruption threatens Africa’s nonprofit and charity sector
Corporate governance practices of nonprofit organisations should be just as sound as those of their corporate peers
SA has a vibrant non-government sector, and yet the prevalence of corruption among nonprofit organisations (NPOs) could be its undoing. As a specialist in cyber crime and fraud, and having accumulated considerable experience as a lawyer focusing on white-collar crime, I’ve worked with a number of NPOs in various sectors throughout Africa. Most recently, I was called upon to investigate fraudulent activity at a global NPO with operations in various jurisdictions in Africa. My fraud risk assessment revealed that corruption had cost the organisation R8.5m. Nor is this the first instance of fraud at an organisation specifically formed to take care of the country’s interests. I was once asked to investigate donations of vehicles and equipment at a high-profile SA children’s charity, where none of the cars or computers actually made it to the charity’s premises. Instead, they remained at the homes of senior employees and were used by them and other employees for the daily school run and t...
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