BusinessCompany NewsKPMG: Fraud rampant in construction industry

KPMG: Fraud rampant in construction industry

Fifth of all construction clients have fallen victim to fraud from their own companies.

KPMG’s Global
Construction Survey 2007
has found that a fifth of all construction
companies’ clients claim to have fallen victim to fraud on recent projects.

The firm found that 20% of clients – government agencies, private developers
and retail groups – were aware of fraudulent activity as part of the delivery of
recent projects.

KPMG head of construction Richard Whittington said that he had been taken
aback by the scale of the problem.

‘The fact that one fifth of all respondents indicated that they had been
aware of fraudulent activity during recent projects gives grave cause for
concern, particularly as this is an issue which can have severe consequences,
both financial and on a firm’s reputation,’ he said.

Further reading:

Deloitte called in to probe McAlpine

Accounting scandal wipes £11m off McAlpine’s books

Companies in denial on fraud

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