An analysis of measures to combat the risk of economic crime associated with post-disaster funding in South Africa

Nina Du Toit, Philip Steenkamp and Andre Groenewald

Journal of Financial Crime, 2024, vol. 32, issue 2, 369-388

Abstract: Purpose - The purpose of this paper is to analyse the measures that could be taken to combat the risk of economic crime in the aftermath of South African disasters. Design/methodology/approach - This paper used secondary sources including, but not limited to, institutional reports, newspaper articles and peer-reviewed academic journal articles. Findings - The COVID-19 pandemic was used as an example in this paper to discuss the susceptibility of post-disaster funding to the risk of economic crime and to assess how the South African government attempted to combat this risk during the pandemic. The Auditor-General of South Africa (AGSA) conducted a real-time audit of the government’s essential COVID-19 initiatives in collaboration with the newly established Fusion Centre. Through their collaborative efforts, they successfully identified mismanaged funds, facilitated the recovery thereof and prosecuted individuals and entities involved. This paper found that to proactively combat economic crime in future post-disaster events, the collaborative use of the AGSA and the Fusion Centre, in conjunction with existing bodies established under the Disaster Management Act, should be considered. Originality/value - This paper contributes to the body of knowledge in disaster risk management and forensic accountancy. As the frequency of disasters is expected to increase in the future, so will the economic crime risk associated with post-disaster funding. This paper demonstrates that post-disaster funding is especially susceptible to the risk of economic crime and it is therefore important to research methods to combat this problem and prevent further losses.

Keywords: Economic crime; COVID-19 pandemic; Auditor General South Africa; Fusion Centre; Post-disaster funding (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-03-2024-0114

DOI: 10.1108/JFC-03-2024-0114

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