34. In the most recent incident of fraud or corruption within your organisation that you are aware of, the main perpetrator(s) was?

Public Sector Fraud Awareness Survey - Findings: Incidents of fraud.

Observation:

PwC comment:
Internal fraud continues to be a significant risk for all organisations. This is because staff know the organisation, know the systems and processes, know the weaknesses and are trusted.

Of the 22.5% of respondents who were aware of at least one incident of fraud in their organisation, 77.4% reported that the main perpetrator came from within the organisation.

This was consistent across Central Government (76%), Local Government (83%) and Schools (71%).

Respondents indicated the main perpetrator was an operational staff (46%) or administration/support service person (22%).

Question 34 - Percentage response.

  Internal (within
the
organisation)
External
(outside the
organisation)
A combination
of external and
internal (i.e.
collusion)
Don’t know Total
Central Government                  
Autonomous Crown Entities 5 50% 5 50% 0 0% 0 0% 10
Central Government - Other 9 90% 1 10% 0 0% 0 0% 10
Crown Agents or Companies  17 68% 3 12% 4 16% 1 4% 25
Crown Research Institutes 2 100% 0 0% 0 0% 0 0% 2
District Health Boards 17 68% 5 20% 1 4% 2 8% 25
Government Departments 48 83% 4 7% 2 3% 4 7% 58
Independent Crown Entities 1 50% 0 0% 0 0% 1 50% 2
Māori Trust Boards 2 67% 0 0% 1 33% 0 0% 3
Rural Education Activities Programmes 0 0% 0 0% 0 0% 2 100% 2
State-Owned Enterprises 13 68% 3 16% 3 16% 0 0% 19
Tertiary Education Institutions 29 88% 2 6% 2 6% 0 0% 33
Sub-Total 143 76% 23 12% 13 7% 10 5% 189
  Internal (within
the
organisation)
External
(outside the
organisation)
A combination
of external and
internal (i.e.
collusion)
Don’t know Total
Local Government                  
Airports 2 33% 1 17% 2 33% 1 17% 6
Council Controlled Organisations or Council Controlled Trading Organisations 11 79% 0 0% 3 21% 0 0% 14
Energy Companies 12 86% 0 0% 2 14% 0 0% 14
Fish and Game Councils 1 100% 0 0% 0 0% 0 0% 1
Licensing and Community Trusts 6 100% 0 0% 0 0% 0 0% 6
Local Authorities 55 86% 4 6% 3 5% 2 3% 64
Local Government - Other  0 0% 0 0% 0 0% 0 0% 0
Port Companies 0 0% 0 0% 0 0% 0 0% 0
Sub-Total 87 83% 5 5% 10 10% 3 3% 105
                   
Schools 27 71% 6 16% 2 5% 3 8% 38
Total 257 77% 34 10% 25 8% 16 5% 332

Observation:

Of the 22.5% of respondents who were aware of at least one incident of fraud in their organisation, the size of organisation did not make it any more or less susceptible to internal fraud.

Percentage of respondents in that organisation size indicating most recent fraud occurrence to be internal in nature.

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