KPMG in the UAE, a member firm of the global network of professional service firms providing audit, tax and advisory services announced today the launch of the first fraud and misconduct reporting service in the UAE. The Ethics and Integrity Hotline service, known as “Itisal Al Nazahah”, will enable internal (e.g. employees) and external (e.g. suppliers) stakeholders to report confidentially and anonymously any potentially illegal, unethical or improper conduct within an organization.
As organizations take advantage of the dramatic economic growth in the region to expand their business, they face an increased risk of being the subject of unethical behavior, be it fraud or misconduct. As part of an organization’s fraud risk management strategy, KPMG UAE’s anti-fraud program advocates the philosophy that “prevention is better than cure”, by encouraging stakeholders to report potentially illegal, unethical or improper conduct.
Itisal Al Nazahah is a multi-channel communication model which is provided through a toll free number handled by KPMG forensic employees, a secure fax number, and e-mail and surface mail addresses. This will enable stakeholders to convey their concerns promptly, confidentially, and with ease.
"Scandals and failures emanating from fraudulent acts are one of the greatest risks to an organization's viability and reputation. Global and regional businesses moving into the UAE, and local businesses (some acquiring interests outside of the region), are recognizing the need for greater transparency and robust risk management policies and processes which include managing the risk of fraud and misconduct,” said Colin Lobo, Partner, Forensic, KPMG.
“Employees are often afraid to report fraud for fear of retribution or victimization, and we believe that a confidential and anonymous reporting mechanism forms the bedrock of a well-designed fraud risk management strategy for an organization” added Lobo.
According to recent KPMG surveys and interviews, a substantial number of incidents of unethical or illegal conduct are uncovered due to reports by customers and employees. KPMG UAE has recently undertaken the second GCC Fraud Survey, the results of which will be published in Q1 2008. Initial analysis of the data suggests that a majority of the respondents expect fraudulent activity to rise due to the exponential economic growth that the region is currently experiencing.
About KPMG:
KPMG in the UAE is a member firm of KPMG International and has been present in the UAE since 1973 and has offices in Dubai, Abu Dhabi, Jebel Ali, Fujairah, Sharjah. With over 500 professional staff, 18 partners and access to a wide network of professionals around the globe, KPMG is recognized as a key player which adds transparency to the audit, tax and advisory value chain.
KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides professional services to clients.
