Whistleblowing platform to fight corporate fraud

AN estimated five percent of corporate revenues are lost annually due to fraud, according to the Association of Certified Fraud Examiners (ACFE) 2018 Report to the Nations.

This loss is estimated to exceed US$7 billion worldwide.

To abate mounting corporate fraud, P&A Grant Thornton, one of the top five auditing firms in the country, has launched an upgrade to its online whistleblower reporting service. Called ProActive Hotline, the secure, web-based service lets whistleblowers hide their identity when reporting theft, corruption, bribery, and other misconduct in the workplace, whether committed by people of authority, by an employee, a customer, or a supplier of the company.

“Misdeeds and unethical corporate practices sometimes go unreported in organizations because employees have become fearful of being targeted for reprisal or retaliation by perpetrators of fraud or misconduct,” said P&A Grant Thornton partner and advisory services head Emiliano Librea III. “This is why firms must provide an environment where witnesses can confidently yet anonymously report these malpractices.”

Subscription

User companies can subscribe to the online service by going to the website, www.proactivehotline.punongbayan-araullo.com, and pay an annual fee of P150,000.

“Whether one is a small-scale business or a huge conglomerate, any firm is vulnerable to fraud, especially when its internal control systems are weak,” said Librea. He added that corruption such as conflicts of interest, bribes and kickbacks, and asset misappropriation are among the common cases of fraud in companies.

Certain industries or company departments that deal with large contracts or assets can be at risk for high-value fraud if the necessary checks and balances are lacking.

“The initial detection of fraud in the organization via a tip reported through the ProActive Hotline could reduce further losses for companies,” he added. According to ACFE, organizations with hotlines detect 46 percent of its fraud cases via tips.

ProActive Hotline is endorsed by the Integrity Initiative, a private sector-led movement within the Philippine business community formed to promote ethical business practices and fight corruption. PR

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