The Liberia Maritime Authority (LiMA) will on today conclude a 3-day Certified Fraud Examiners Conference in Monrovia, which began on Wednesday, November 13, 2024, under the theme, “Together, Reducing Fraud Nationwide”.
Speaking at the opening of the event on Wednesday at the headquarters of LiMA, the Commissioner/CEO of the Liberia Maritime Authority (LiMA), Cllr. Neto Zarzar Lighe, Sr., said the fight against fraud is necessary to assist those in positions of trust to do what is right and avoid the abuse of the privileges they enjoy at the helm of authority.
“Fighting fraud is important for those of us who are leaders, for we do not know all and we cannot be everywhere. What we did when we took over LiMA is to set up a risk management section that would be the fight line of checking potential indications of fraud before the assigned internal auditors can review the documents, in line with their statutory responsibility,” the Commissioner said.
According to him, whenever his auditors express grave concern about a particular transaction or process, he does not sign or approve such a deal.
He added that checks and balances are good for the proper functioning of any system, and that he was at the conference to support the work of the Certified Fraud Examiners. “This conference and the work you do to fight fraud are laudable ventures that must be supported by every well-meaning Liberian,” he underscored.
For his part, the President of the Liberia Chapter of the Certified Fraud Examiners (CFE), Atty. Augustine G. Chenoway, said as Certified Fraud Examiners (CFEs) they are aware that this pervasive problem affects individuals, businesses, and governments worldwide. In Liberia, like everywhere else, identity theft, financial fraud, and other fraudulent activities can have devastating consequences, undermining trust, causing financial losses, and eroding the integrity of systems.
He emphasized that as fraudsters become increasingly sophisticated, it is essential for individuals, organizations, and governments to adopt a multi-faceted approach to deter and prevent fraud by, for example, strengthening internal controls, implementing advanced technology, and encouraging a culture of transparency and accountability.
“Globally, fraud causes billions of dollars in damages to countless companies, governments, and individuals each year. Fraud can dramatically affect the quality of life of its victims. The major fraud schemes include asset misappropriation, financial statement fraud, identity fraud, and corruption,” he added.
In most cases, according to Atty. Chenoway, financial statement frauds involve a company’s executive management understating annual earnings to avoid or evade taxes or overstating earnings to attract new investors or creditors. Hence, he emphasized that regulatory bodies need to critically review companies’ annual financial statements to avoid relevant stakeholders being deprived of needed resources.
The ACE’s Annual Report, known as the “Occupational Fraud 2024: A Report to the Nations (for the period Jan. 2022 to Sept. 2023)”, states that 1,921 fraud cases were reported globally, which caused about 3.1 billion losses to individuals, companies, and governments. Financial statement fraud had the lowest incident but with massive consequences, amounting to some US$766 million, while asset misappropriation and corruption were the most common schemes.
The report also indicates that Sub-Saharan accounted for about 299 cases in Africa. Therefore, the task for CFEs around the world is huge.
Hence, to adequately prepare and fight this menace (occupational fraud), he said CFEs need regular professional training and engagements to enhance their competence and integrity. In line with the ACFE Code of Ethics, “we are obligated to ensure that we perform our duties wherever we work, with the highest standards, objectivity, and integrity. This cannot be done alone; we need to collaborate and share our experiences. Considering the aforementioned, we have organized this training/conference under the ‘Theme: Together, Reducing Fraud Nationwide’.
“I, therefore, encourage you to fully participate in these discussions and share your experiences with your professional colleagues.
“Permit me to kindly remind you about this year’s International Fraud Awareness Week. The Fraud Awareness Week will commence on November 17th and run till the 23rd. Thus, I herewith, admonish you to please create some level of awareness in your workplaces or communities,” he maintained.