Bulgaria’s Fight Against Economic Crime: A Constant Struggle

A Growing Concern in a Downward Economy

SOFIA - As Bulgaria faces the challenges of an economic downturn, its businesses are facing an even greater threat from economic crime. According to a recent survey by PricewaterhouseCoopers (PwC), the prevalence of fraud and corruption in Bulgarian companies remains a significant concern.

The Scope of the Problem

The study found that:

• 53% of respondents reported detecting fraud committed by external perpetrators
• 33% of cases involved dismissed employees
• 27% resulted in civil action or criminal charges
• One-third of Bulgarian companies failed to take swift and decisive action against perpetrators, often opting for a warning or reprimand instead

The Importance of Zero Tolerance

“To effectively combat economic crime, it is essential to demonstrate zero tolerance for malpractice,” said Bojidar Neitchev, Partner and Head of Advisory Services at PwC Bulgaria. “Companies must establish a culture that supports anti-fraud controls, with clear and ethical guidelines in place to ensure that all perpetrators are held accountable, regardless of their position or function.”

The Need for Greater Vigilance

The survey also highlighted the need for greater vigilance and proactive measures to prevent fraud. While:

• 15% of respondents reported experiencing asset misappropriation in the past year
• Only 8% perceived themselves as susceptible to bribery and corruption

A Disciplined Approach is Key

“The fight against fraud is a constant struggle,” said Kemal Özmen, Southeast Europe Forensic Leader at PwC. “Companies must continually re-evaluate their fraud risk management activities and strive to establish a strong anti-fraud culture that supports clear ethical guidelines and swift action against perpetrators.”

Best Practices for Fraud Prevention

The PwC Global Economic Crime Survey 2009 highlights the importance of:

• Establishing a strong tone at the top
• Implementing tailored controls
• Providing training and awareness programs for employees

By following these best practices, companies can reduce their exposure to economic crime and build trust with stakeholders.

Conclusion

While the battle against economic crime in Bulgaria is ongoing, it is clear that swift action, accountability, and proactive measures are essential to combating this pervasive threat. As PwC’s survey demonstrates, only by working together can businesses and regulators create a culture of integrity and transparency that benefits all stakeholders.