Evaluation of fraud prevention measures in the Unemployment Insurance Fund, North West Province

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ABSTRACT

The fraud prevention measures in Unemployment Insurance Fund, North Wes/ Province, were evaluated in this study. The manual on .fi·aud prevenlion measures

was formulated and started implementation in 2000, and since !hen, no review was made. Different literature was reviewed to find out what other researchers say ahmtl the relrted problem. In reviewing literature, it was found out !hal, fraud had an adverse effect in any business, and the best w~y to combat or prevent it, was to formulate and implement some preventative measures, monitor and review them at least annually.

Data gathering was conducted by distributing questionnaires to different siaff of Unemployment Insurance Fund throughout the North West province. The

questionnaires were aimed at identifYing the most vulnerable areas to ji-aud, evaluating the effectiveness of.fraud prevention measures, identifYing different types and causes of fraud and finding out whether contributors and their employers are well informed about the Unemployment Insurance Fund.

The study found that the existing fraud prevention measures were not quite effective

in the sense that they are reactive than preventive according to the re~pondenls. Claims, accounts and registry sections were identified as the most vulnerable

sections. The most prevalent types of frau din the UJF were found to he cheque, cash, and identity frauds The study again found the main causes of fraud in UIF are ineffeclive internal controls, lack of strict supervision, income disparities and low salaries of/ower level employees. It also came to light on the study that there has not been any significant ·change in fraud since !he year 2000 after the formulation and implementation of fraud prevention measures among the ways to reduce fraud as suggested by the employees are salary review. constant SUfJervision .inten.l'il'e

investigations and awareness campaigns . what is essential to ejj'ectively reduce the

level of fraud in the UIF is effective implementation of the preventive oriented '•

internal controls coupled with .~·trict supervision.

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