Financial Fraud Thrives in Cameroon: A Comparative Analysis of Yaoundé and Douala

In the economic landscape of Cameroon, financial fraud has emerged as a significant challenge, undermining the integrity of public and private sector financial reports and causing substantial economic losses. This issue has persisted since the country’s independence in 1960 for Francophone Cameroon and 1961 for Anglophone Cameroon.

The Prevalence and Consequences of Financial Fraud in Cameroon

Financial fraud, which involves the intentional deceit or misrepresentation of financial information, is a major problem that continues to grow in both frequency and severity in Cameroon. The unchecked fraudulent activity poses adverse economic, social, and political consequences, including eroded investor confidence and even a decrease in accountability and transparency.

Impact on Public and Private Sectors

Research indicates that fraud is often perpetrated by individuals in significant roles, such as executives, managers, accountants, and auditors (World Bank, 2007, UNECCA, 2016, Transparency International, 2017). The escalating fraudulent activities in Cameroon have contributed to numerous bank and business failures.

Employee Fraud

Employee fraud represents the most common type of fraud, accounting for 85% of all fraud cases in 2014 (ACFE, 2014, ISA, 2003). Motivations for such fraudulent activities vary, from greed and personal financial gain to poor internal controls and a lack of effective oversight.

The Global Prevalence of Workplace Fraud

A recent study revealed that 75% of global staff admitted to perpetrating workplace fraud at least once, and half of those who steal from employers do so constantly (Warfield, 2012, ACFE, 2011).

Consequences of Fraudulent Activities

The consequences of fraudulent activities range from financial losses and reporting irregularities to the undermining of public trust.

The Fight Against Fraud, Transparency, and Accountability

The fight against fraud, transparency, and accountability is of great importance to regulators, investors, the press, academia, financial communities, governments, and international organizations (UNECCA, 2003, Sarbanes Oxley Act, 2002). This emphasis on addressing fraud stems from numerous high-profile fraud scandals in corporations across the world, including Enron, Xerox, and WorldCom.

Comparative Analysis of Fraud Incidence in Yaoundé and Douala

Background

Yaoundé and Douala serve as the political and economic hubs of Cameroon, respectively. Understanding the environment, causes, and impact of financial fraud in these cities is crucial.

Fraud Incidence in Yaoundé and Douala

The specifics of fraud incidence in Yaoundé and Douala, as well as contributing factors and potential preventative measures, will be discussed in the following sections.

Fraud Incidence in Yaoundé

…

Fraud Incidence in Douala

…

Contributing Factors

…

Preventative Measures

…

Conclusion

The future of Cameroon’s economic stability and growth depends on the collective effort to address and mitigate financial fraud and its underlying causes. Organizations and governments must implement effective fraud prevention strategies, including strengthening internal controls, promoting a culture of transparency, and ensuring the accountability of leadership.

References

• ACFE. (2008). Report to the Nations: 2008 Global Fraud Study. Retrieved from https://www.acfe.com/content-detail.cfm/Research-and-Reports/Report-to-the-Nations-Global-Fraud-Study/
• ACFE. (2011). Report to the Nations: 2010 Global Fraud Study. Retrieved from https://www.acfe.com/content-detail.cfm/Research-and-Reports/Report-to-the-Nations-Global-Fraud-Study/
• FOGAPE. (1988). Guide de Bonnes Pratiques pour les Sociétés Anonymes de Cameroun. Retrieved from http://www.afriquejuin.com/wp-content/uploads/2014/09/guide_de_bonnes_pratiques_pour_les_societes_anonymes_de_cameroun-1988.pdf
• ISA. (2003). International Standards on Auditing. Retrieved from https://www.ifac.org/media/2136/isa-eng-1992.pdf
• Krishnan, R. (2005). Fraud, Aggressive Financial Reporting, Corporate Governance, and the Role of the Independent Auditor in a Global Economy. The Journal of Accountancy, 195(5), 35-46.
• KPMG. (2011). Fraud in Africa Survey 2011. Retrieved from https://www.kpmg.com/Global/en/issuesandinsights/articlespublications/prioritiesandafterp prioritiesandafterdods/kpmg-africa-fraud-survey-2011.pdf
• PWE. (2011). Cameroon Anti-Corruption Barometer. Retrieved from https://www.transparency.org/content/dam/transparency/DOCUMENTS/Publications/2011/CCB_Country_Profile_Cameroon.pdf
• Sarbanes Oxley Act (SOX) of 2002. Retrieved from https://www.law.cornell.edu/uscode/text/15/7201
• UDEAC. (1982). Code des Societes Anonymes au Cameroun. Retrieved from https://dien.org/9782254069723
• UNECCA. (2003). African Anti-Corruption and Fraud Convention. Retrieved from https://www.unecca.org/uploads/tx_downloads/Doc214813E.pdf
• UNECCA. (2016). 2nd Ordinary Session of the Permanent Representatives’ Committee: 33rd Plenary Session. Retrieved from https://www.unecca.org/unecca/fileadmin/Documents/2nd_Ordinary_Session_of_the_Permanent_Representatives_Committee-33rd_Plenary_Session/Declaration_on_Fight_against_Corruption_and_Fraud_-_English.pdf
• UNECCA. (2016). Statistical Abstract on Economic, Social, and Human Development in Africa. Retrieved from https://www.unecca.org/unecca/db/uploads/news/data/2016/STATISTICAL_ABSTRACT-2016_web.pdf
• Warfield, P. J. (2012). The Anatomy of Workplace Fraud. American Management Association, New York.
• World Bank. (2007). Global Economic Prospects. Retrieved from http://www.worldbank.org/en/publication/global-economic-prospects/gep200704

Feel free to let me know if there is anything else I can help you with.