Financial Crime World

Fraud Epidemic Hits Jamaica: Over $6 Billion Lost in Past Five Years

Introduction

The Jamaican police have received a staggering 2,932 reports of fraud involving over $6 billion between 2018 and last year, highlighting the country’s growing problem with financial fraud.

Financial Impact

  • The total amount lost due to fraud is over $6 billion
  • Last year alone saw 789 fraud-related complaints involving J$414 million and US$20 million

Affected Companies

Several companies have been affected by these cases, including:

  • Banking giants National Commercial Bank and First Global
  • Manufacturing and distribution conglomerate Seprod Group
  • Fast-food franchise Burger King

Recent Cases

  • 14 current and former employees of Seprod were charged with defrauding the company of approximately $160 million
  • Five employees at a Burger King outlet in Harbour View, St Andrew, have been arrested and charged in connection with a $10- million fraud

Impact on Businesses

The Private Sector Organisation of Jamaica (PSOJ) has expressed concerns about the impact of these cases on businesses. “When an employee wrongs the company, the long-term impact on the company’s progression from the incident results in some employers becoming gun-shy when they are hiring people,” said Metry Seaga, president of the PSOJ.

Challenges Faced by Employers

  • Small businesses are particularly hard hit by fraud and often unable to recover due to limited resources
  • Employee morale can also be affected if the company suffering fraud losses tightens security and monitoring of all employees after suffering fraud

Challenges in Terminating Suspected Employees

The PSOJ has complained about the challenges faced by employers in terminating workers suspected of fraudulent activities. According to Seaga, cases that go before the Industrial Disputes Tribunal (IDT) are often settled in favour of the workers.

IDT Response

  • The IDT emphasizes the importance of adhering to the country’s labour laws and ensuring that natural justice is upheld in all cases
  • “It could be something as simple as … non-performance or poor performance … You have to take the case to us and prove it,” said an IDT spokesperson.