PracticeAuditCorruption mounts in Russian businesses

Corruption mounts in Russian businesses

PwC finds more than half of Russia’s biggest companies suffered at least one economic crime in the past year

PricewaterhouseCoopers,
which is currently being sued by Russian authorities over its involvement in the
collapsed oil company Yukos, has found corruption in Russia is draining million
of dollars from the Russian economy.

Its newly released biennial report, ‘Economic crime: people, culture &
controls’, reveals more than half of Russia’s 125 biggest companies, at 59%,
suffered at least one economic crime in 2006 – up 10%, from 49% in 2005.

The survey also found the average cost of an economic crime for a Russian
business had quadrupled to $US12.8m (?6.2m) since 2005. ‘Frauds committed by
senior and middle management cause the greatest financial damage to businesses,’
PwC said in the report.

The report said almost half of the companies felt that over the past two
years they had been placed in a position where they had to pay a bribe, and just
over half felt they had lost out to a competitor because they had not paid a
bribe.

Further reading:

Russia expands lawsuit against PwC over Yukos
involvement

New hearings for PwC Russia

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