BDO Stoy Hayward’s recent research suggests the credit crunch is pushing up the levels of corporate fraud. Of course, as always, internal fraud makes up a large part of the overall picture. Stories reaching my ears in the last few weeks involve sales personnel “upping” their business mileage, and therefore travel expenses, thinking that artificial increases in petrol costs will be disguised by the real increases at the pumps. Others involve simple pilfering of stock from company premises.
One financial controller I spoke to on the subject who lived through the last economic downturn in the early nineties had a good piece of advice. He said that companies should organise employee training sessions on fraud policy. His belief is that this immediately demonstrates to staff that you are being vigilant. Employees, who for the most part are not “thieves” but may be feeling the economic pinch, may be dissuaded from crossing the line. Wise words, as prevention is always better than the cure.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children