Bullying

Case Study - When processes fail | WISE Workplace

Background

A junior finance clerk was surprised to see a $10 cab charge on a manager's expense claim, knowing the manager had a company car.

An internal investigation revealed more minor irregularities in the manager's expenses and WISE was asked to investigate.

Objectives

To determine whether the manager had been acting fraudulently and whether the organisation had appropriate systems in place to detect and prevent fraud.

Approach

Extensive interviews were conducted with the manager and other staff.

Our inquiry revealed more than $100,000 of false claims over a three-year period, including more than 80 flights in one six-month period and fraudulent vehicle log books.

As he grew in confidence the manager had even made double claims - for example claiming vehicle expenses in NSW, when flight schedules revealed that he was in Melbourne at the time.

The investigation showed that the fraud was limited to one person.

However, it also showed that the fraud had been made possible by an endemic neglect of risk management processes and the manager's exploitation of his position and knowledge of the company's claims system.

Strategic Outcomes

WISE recommended ways of increasing efficiency in these processes.

The investigation led to the manager's dismissal, an investigation by the Independent Commission against Corruption and ultimately a referral to the Director of Public Prosecutions.
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