okay guys

now we are live in start man

yes

a very good afternoon to respected the

nativities who are here

sharing touch with him from the last two

to three months he just

again i would like to repeat something

that he is the true true

princess scholar and i hope the

all my scholar have to do that

[Music]

second symposium and you know that

center for economic crime and uh counter

corruption studies

of police security and criminal justice

rajasthan is a very beautiful state you

know my

place was international streaming and uh

tourists from coming from the entire

world

to this state and not only this state is

beautiful but the people are also

it's my personal experience so at this

university particularly

university of police and justice is

doing very well and at this

department and internationally

conference

economic crimes and broad management

and the topic of the symposium with the

changing time

and tracking studies

and dear viewers you were very happy to

know that uh

in the field of police social science

criminal justice

public safety and other related areas

this university is doing very well

and you know my viewers at the economic

crime and the associated activity of

fraud

is a growing multinational business

without respect to

a national border there is no word of

the economic crimes

and the ability to discover and develop

sophisticated new weapons to detect

and fight these crimes based on a

cooperative and collaborative strategy

across the nation is imperative that is

why

the i think the organizing team of this

international conference reserved for

the appreciation to select this topic

because it is not the local issue it is

just you can see the international issue

and the the topic of this symposium is

economic crime and fraud control

how to stay ahead in the cat mouse race

and we are very lucky and fortunate

enough the detective georgie richards

that the assured professor denborough

illustrator pennsylvania

united states of america uh he's the

keynote speaker of this symposium

and uh another luminary of the

in the field of the economics uh

he is the head of the department of

economics

and another expert is dr van sunagaya

university of nairobi kenya

now uh the schedule which is has been

given by

the organizers to me that the first

speaker will be the professor

uh head of the department economics

royalty for his prototype

please sir sanji magazine please share

your thoughts with us

uh

okay sorry that was uh oversight on my

path

uh out first i would like to thank mr

hitesh

and mr vijayashin shirong and

shitalarora

for giving me this opportunity and

now actively engaging with you on these

issues

which were very new to me initially but

i thought it's a good idea to actually

uh talk about this

when we think about the economics

and the crime we have the basically the

traditional economics never

thought the crime should be integrated

into textbooks

and we assume that everything that is

criminal

activity or illegal activity should not

be the part of

rational behavior is not incorporated

into the textbook studies

that particularly point um

was something which the crime does not

take place and

if it takes place it is not the part of

standard behavior of human

beings and that's with that note the

first change came

in 1968 when gary baker who is

considered to the father of

the economics of crime he wrote a book

called crime and punishment and economic

approach

and that probably was the departure

point to
incorporate crime as a part of standard

economic study

now in this particular context reading a

particular uh i was reading a

report by pricewaterhooper and it said

that

it has undertaken a survey of 5000 firms

across the globe

and all these firms their annual

revenues more than

100 million 100 million us dollars so

these 5000 firms are

those firms whose annual revenue is more

than 100 million us dollars

and they reported that in 2019

the total volume of economic crime and

fraud

was equivalent of 42 billion dollars

and the three important crimes that were

committed the largest crime that were

committed were

customer fraud cyber crime and asset

misappropriation

now this is more for basically getting

the specific

specificities of the crime that were

committed and how

deep rooted the problem is and it is

also increasing

significantly over the period of time

the course of my talk would be how we

integrate crime into

study of economics and how we control

crime

by using standard tools or developing

tools

of human behavior one important thing

that we have to understand is that

the people who make the decision are

basically

whether they commit crime or do not

commit crime are basically we can divide

them into three different distinct

categories

one is who are voluntary compliant

of legal system we can call the

law-abiding citizens of the country

however very few people can claim to be

law-abiding citizens of the country

but this is a small group the second

group who are

forced compliant

who actually comply to the law and legal

system only by force because they are

feared of the state punishment

punishment by the state and the third

are evaders

now in this context there is a that why

people
tend to be tend to comply or not to

comply depends upon two important

factors

one is the element of trust the people

have with the state

if the people believe that state is

equitable state is fair state

is judicious and every money or every

penny that is spent by the state

is uh fair then the

this perception of fairness works for

the advantage

and they comply the legal system and

they in a standard term they pay taxes

also

this is this is a part of study which

was done for tax evaders but i can

actually that can be also incorporate

other element of crimes

so the higher the trust the people have

of the government so it means

the good governance is very very

important because good governance

enables people to have

greater trust and when the people have

larger trust they've

generally do not evade laws

or do not uh commit crime

and those people who are

[Music]
feared of steel so second element is the

degree of

fearness or the degree of uh fairness

from the

from being prosecuted by the state is

another element

so larger the fear of the state and

larger the trust

higher is the compliance to the law and

legal systems and lowers the crime

but as the fear of the state declines

and as the trust of this trust the

people have among the foreign state

also declines then the amount of crime

economic crime committed

also increases in this particular

context

i think we have to understand the

criminal is like an ordinary human being

makes the decision on the basis of

rational choices that he has

a rational choice is that when he takes

into account all the alternatives that

is available to him

any judge the alternatives and on the

merit of each alternative then the

person decides

which alternative has to be taken and

and that's particularly also

he decides to commit a crime if the

crime

is leads to what we call maximizing the

expected utility function over the

period of time so if

expected utility is maximized the person

would definitely

commit the crime if we have to prevent

from prevent people from committing

crime then we have to reduce the

probability of the expected utility that

can be derived from committing the crime

one of the element i believe

why this the probability of the people

attached lower probability

of being caught is because there's a

large political nexus

criminal political nexus which

make the people believe that they can

commit the crime and get scot-free

and they attach lower risk to committing

crime

this particular element is very very

important for politico economic

structures that how the society

and the state are able to provide a

platform where

people fear of being punished by the

state or being caught

and punished by the state if they are

doing something illegal

what has happened over the period of

time is that this fear has become lesser

and lesser

as the market is evolving and

deregulation of the market is taking

place

the opportunities are also expanding

and people can avail this opportunity

in different ways some people find legal

ways of

utilizing or using these opportunities

and for some people

they have to go for alternative ways to

avail these opportunities

and if they feel left behind so far in

the process of economic growth which was

not considered to be equitable

in that particular context the incidence

of the

the what we call the propensity to

commit crime also increases

so this is one particular important

factor is the crime has to be perceived

from the fact that they are economic

opportunity

as economic opportunity grow there will

be tendency on the part of people to

commit a crime
and if we have to protect the people

from

crime and being victimized by these

crime

then the state has to play a very

leading role the second element which i

always believe is that

it's not only the state but the

communities also have to play an

important role

what kind of moral system what kind of

ethical structures

that societies have created plays an

important role in determining

the construct of crime in the society

for example the parsys community in

india had a very strong ethical

perception is that anybody who takes the

loan

and defaults on the loan is considered

to be socially

uh alarming and socially unacceptable

unethical

behavior and the people are not

basically the

the people to actually honor their

commitment as far as loan is concerned

or any other economic obligation is

concerned

they have to commit to that and this

commitment

basically comes from the ethical

structure that

communities have created the community

bonds

and the community ethics have to evolve

over the period of time

it is not that the market is market an

army or institutional anomalies

can uh over can actually overtake the

ethics of this society

i think a market has its own ethics

institutions have their own ethics

but uh the problem is that these ethics

of

market and institutions have been

sidelined by

the the outward growth or super

structures that we have

i think that is the major problem as far

as the uh the

increasing crime that is being committed

the crime is not only

something that is committed in um by in

the street

but what is more important crime that is

committed in the

uh offices in the lobbies

of hotels every place of market

where the time can be committed so it

can be committed in suits or it can be

committed in

streets i think these are important

element to understand

and the technologies emerging technology

especially the ict technology has opened

another frontier of crime

that is the especially the cyber train

and this has become difficult

to capture and also to

tackle this particular cyber crime

because many police forces

and many agencies in different countries

especially in bhutan are struggling to

find the ways to battle

cyber crime which is affecting their

systems

and also

throws these citizens to the

to become victim to the cyber training

and also especially it results into loss

of

assets and loss of wealth to them

so these are the elements as i said the

economics of crime is especially a new

area to me

i would rather learn more from you

rather than contributing to this

discussion
yeah with that probably i have only this

much to say

thank you

[Music]

very impressive and very to the point

this lecture you have delivered and

there is a relation between

morality and the economics and so on

now the uh next speaker is

mr dr ben sanagaya he is

coming from the university of nairobi

kenya and

he will just give his thought over the

issue

dr ben again

please

dr benson are you hearing me

so due to network problem i think he

left

[Music]

if you wish

now i think uh technical problem dr

benson

left and definitely will rejoin

the opportunity to him to speak on the

issue

now our keynote speaker that dr george

richard

attenborough university of pennsylvania

university of america

now he will just give a thought over the

issue and the people are waiting for

dr george eric please

good morning can you hear me

good morning

good afternoon well wherever whatever

time you're in it's um

5 a.m my time here um it is an honor to

be with you today

i appreciate the invitation very much

what i would like to do in the next few

minutes

is to discuss some of the things that

have been

problematic with the study of

white-collar crime and business crime in

the united states

talk about some of the statutes and

legislation that has been

enacted to try to curb these crimes and

their severity

probably one of the better known and

current explanations of white-collar

crime

is it's a generic term for a range of

illegal prohibited and demonstrably

harmful activities involving a violation

of a public or private trust

occupying a legitimate respectable

status

directed towards a financial advantage

or the maintenance and extension of

power

privilege this abuse of trust is not a

new phenomenon

this can be traced back to ancient times

where people would sell diluted wine or

forge coins

the person the average person who

entered into these transactions had no

way of knowing

whether or not they were entering a

bargain that was

fair and just improper so therefore

trust had to be an integral part of any

type of transaction

in the distant past that crimes of fraud

had serious consequences

punishments were harsh these

were considered a breach of social norms

and beyond corporal punishment capital

punishment there was certainly societal

management

during the industrial revolution in the

united states and throughout western

europe

we had corporate giants much like

rockefeller and carnegie and morgan

who had tremendous power over the

economic and political landscapes but

they had little or no regulation that

would guide them

they were involved in many types of

white-collar crimes such as monopolies

fraud and stock manipulation

but one of the things i would caution

you to do at this time

is to just remember that a crime is a

crime because the state

says it's a crime and that crimes

are not lineal throughout history they

have got to

be enacted by the state and labeled as

criminal so a lot of what the

rockefellers

and all were doing to control markets

to manipulate stocks in the 19th century

was not criminal at that time

it was wrong yes morally but criminally

no so be careful of that um

europe this was happening as well during

this time scholars such as bacheria

marx ingalls told that the rich were

committing crimes causing immense public

injury

and there was no interference by law due

to the impacted power that they held

in order to remedy the situation in the

united states congress enacted the

sherman antitrust act in 1914

to break up monopoly power they

criminalized

anti-competitive corporate conduct and

competition and

ethic of competition is central to a

capitalist

society white collar crime well for one

it is the impact it has on society

um dr mata mentioned earl professor

maida mentioned earlier

in his presentation and very rightfully

so there's crime in the sweets and crime

in the streets

and there is can be little doubt that

from an economic standpoint

crime in the suites white-collar crime

caused society a great deal

more uh than crime in the streets does

it is much more far-reaching the lack of

regulation that we had

in the united states one of the 1920s

created grounds for what has since

become known as the great depression

and stock market crash that ushered that

end

the reserves such as public funds we

have now that are manipulated by the

stock mark

are held in the stock market such as

pensions and insurance

um these are definitely affected by

those who commit fraud we certainly saw

this with the enron

collapse where corporate greed and

avarice

led to the disintegration of that

company and as a result

many stock of many retirees whose

annuities were held

or had a significant part in ron stock

were left

roughly penniless

in the aftermath of the great depression

the united states

the government began to act in a manner

that would create similar that would

prevent

similar economic crises from occurring

of the securities act of 1933 the

investment

company act of 1940 etc

government appeared to be keeping the

market stable while keeping white collar

crime at bay but this appearance was

most misleading

even though there have been famous cases

of fraud and white-collar crime

throughout history and

charles ponzi case would be one of the

better examples

we have not seen anything like this

to like the last 30 years or so

beginning with

enron well going back to the 1980s in

the united states with the savings and

loan scandal

through enron and what we see now in

this country

one of the things most progressive

things that we have done in the us

has been to create the national white

collar crime center

to foster better cooperation among law

enforcement agencies in the united

states and globally

and to also create a clearinghouse of

research about white-collar crime

since the turn of the millennium there

have been

other economic disasters we can look at

enron in 2001

the largest bankruptcy in history uh

there was the

mark dreyer and bernard madoff cases

with the madoff case being the largest

financial fraud in history

um and the economic collapse of 2008

which was not necessarily

attributed to fraud although there's

certainly plenty of that to go around

but what we saw here were the largest

number of bankruptcies that we have ever

seen

in my country's history all of these

incidents still have ripple effects

not just in the primary ways

the secondary ones you've got the

primary that are going to affect the

companies

and the direct victims secondary are

going to be the costs that will go to

um government and institutions that are

responsible for the cleanup but then

you've got the tertiary

victims and tertiary circumstances this

is going to be the erosion of trust

in the economy in the capitalistic

system and this is necessary

absolutely essential for our economy

to work um the damages of white-collar

crime

the first thing comes to mind is going

to be the corporate

direct cost such as the loss of victims

money

and subsequently the loss of confidence

and integrity in the stock market

um then we see corporate violence

which is indirect violence caused by the

corporate policies and actions

it is defined as the result of a group

of individuals acting collectively and

participated by the desire to maximize

profits or minimize losses it has

traditionally inspired a far more

limited legal

and justice system response

we have held and i've mentioned this

earlier and professor mata did as well

going back to sweet crime compared to

street crime

it has always been considered in my

country that street crime was much more

inherently dangerous

because you had one-on-one interaction

between generally between the

perpetrator and the victim

i am not in any way here um trying to

negate

the depth of harm done to the victim or

the seriousness

of what they have had to suffer or

endure but

from the impact of society at large

it's going to be white color crime

street crime and fraud

but it's going to be much more serious

wide spreadsheet and will touch

many more people

it is estimated that sweet crime will

cause society up to 50 times more than

what we consider the conventional or

traditional types of street crime

what since corporate crime and

white-collar crime is considered to be

the most consequential of all types of

sweet crime there have been certain

[Music]

pieces of legislation to try to go

through and fight this

in the um in recent years the

sarbanes-oxley act of 2002

and most recently the stock act of 2012.

legislatures congress realized there was

difficulty preventing insider trading

and embezzlement

as well as finding signific sufficient

evidence in court to prove these crimes

what we have when you try to investigate

or prosecute

a white-collar crime corporate law

not just an individual necessarily but a

corporation

is that these actors hide behind what is

called the corporate

veil through obfuscation and hiding and

being very talented at manipulating

books and

eliminating paper trails it gets to be

very very difficult to find out exactly

who was responsible

for these acts within the corporation we

saw this with enron to where

that executives outright restore

destroyed many documents

um attributing to frauds uh perpetrated

by the upper echelon

at enron as a result many escaped

prosecution

sarbanes-oxley act was one of the things

that it did

it created new standards for corporate

accountability

and it removed a very common defense

used by corporate executives and that

was simply i was not aware that was no

longer a viable excuse

a company leader had to take

responsibility

for the actions of their underlings if

they didn't know they had better know or

better have a very good

excuse as to why they did not know um

the stock act of 2012 eight years ago in

my opinion this is one of the best

pieces

of legislation we've ever enacted in the

u.s

to reduce the

harm of white-collar crime and to hold

people accountable

there have been cases upon cases of

obvious conflicts of interest between

politicians and corporations

and these occur when publicly elected

officials

are accused of using their office to

benefit a private organization or to

engage in insider trading

we see this and we see this suspiciously

when

public officials and politicians leave

elected office

significantly wealthier than when they

went in

and there was no way to make that money

legitimately on the salary they were

being paid as a government service

and this will raise eyebrows and cause

some degree more than some degree of

well-justified suspicion

prior to the stock act of 19 2012

public officials were

discouraged from financially acting

unscrupulously

using insider information for personal

gain but was not necessarily

prosecutable

now it is um we are finding in the u.s

now that you're finding more and more

um longer prison sentences for

white-collar crimes

um bernard madoff sentence of life in

prison um

that was rare and he was about the first

um although there's been an increase in

the length of um

prison sentences this has not been an

effective deterrent

are still seeing corporate actors

engaging in fraud

engaging in malfeasance at the corporate

level

um other than other than

prison sentences what you're going to

find is going to be occupational

banishment

uh you will find certain courts that are

going to take away someone's license

or simply prohibit them from serving um

or being employed in a similar field

again

in the us we also are trying to engage

more

in civil penalties other than criminal

penalties and this is where you're going

to have a fine levied by the government

payable to the government or it's going

to be

restitution financial restitution will

have to be made to the victims to try to

make them whole

there are many reasons why white-collar

crime is especially difficult to

prosecute and why there remains

difficulty in finding effective ways to

deal with it

one of the main barriers occurs when

powerful corporations try to use their

wealth and influence over the

legislative and political process

corporations will gain immunity and

privilege from prosecution by using

lobbyists and political action

committees to promote their own agenda

also another thing we're finding here is

the way the

legal criminal a criminal legal system

is built

generally in order to prosecute um to

convict an offender the prosecution is

required to prove

that the alleged offender actually

committed the act act as reyes and the

criminal intent

men's ray was present evidence of the

crimes also beyond a reasonable doubt

this is extremely difficult of

white-collar crime cases in broad cases

where physical evidence can be quite

easily destroyed

another thing with dealing with with

white-collar crime issues

is going to be what we call the swinging

door phenomenon

this refers to cases in which government

officials resign

from their public office and start

working for corporations usually

at significantly higher salaries

than when they held office

and the corporations that hired them

might have at one time

been subject to scrutiny or oversight or

regulation

by the new employees former office so

it's considered what we call a

sweetheart deal

you simply it's a quid pro quo you pay

them back for services that they gave

you

when they were a public official

like any other type of crime crime is

temporal

what is criminal now may not be criminal

in the future and vice versa

we are going to see 50 years ago you did

not see such things as

any type of computer crime it simply

wasn't there because there are no such

things as

computers at people few people could

have seen then what we

are seeing now as far as computer crime

and aspects of fraud committed

using computers as a criminological tool

criminals are constantly becoming more

sophisticated as a result

law enforcement in the judicial system

globally

has to also keep pace with technology

and sophistication

and investigation with new technologies

and features such as digital digital

currency is bitcoin

uh the danger that we face as a society

global society can simply not be ignored

there's also a cis need for a

multi-systematic approach

combining all three branches of

government as well as society

to deal with this matter effectively the

judicial branch needs to understand

white-collar crime and appropriately

recognize and punish

violations of law the legislative branch

needs to be vigilant and

updating legal system

and the executive branch needs to create

mechanisms that enable employees

to avoid the temptations of white-collar

criminality

and lastly and i will close with this we

as a society at large

must do a much better job at denouncing

non-ethical behavior in business

settings which will lead to white-collar

criminality

thank you for your time

thank you sir

thank you very much

[Music]

just reflected on the issue of

uh economic crime and front control how

to stay here in the

atmospheres he has just elaborated all

things in detail and i will summarize

all the things in the

end of the

hello yes sir he joined

he has joined now is my request with you

that was

a community of indonesia please uh

share your thought with us

because of connectivity problem but i do

trust that uh

i'm disappointed midway i have actually

listened to dodger's presentation i

thank you all for

uh this consideration and for the

invitation

to join you

so let me very quickly share with you

some few thoughts

uh trusting that uh uh i will not be

interrupted by connectivity issues

i want to make a a brief presentation

on this subject of

prevention of crime and crime prevention

especially

with regard to economic crime and

particularly

with a little bit of focus on uh

on fraud so i'll

mac

am i audible

yes sir

all right uh sorry i i can probably went

off air

uh i i want to make a brief presentation

on the subject of
broad economic crime and particularly

fraud let me very quickly uh

if this if this permits

all right i i'm not able to load my

presentation but i can i can make a very

quick presentation

economic crimes and fraud control in the

kenyan context

i want to relate this

i won't relate this with uh

the patterns and trends of economic

fraud uh

globally so uh

basically from a legal perspective it is

relatively easy

to define crime

relatively easy to define a crime

as an intentional act not backed by

legally acceptable

defense or justification performed in

violation

of criminal law by which punishment is

described

this is a very classic definition it

happened

[Music]

1947. now defy defining

economic crime is a little bit more

complex in the world

in the world today because of the

numerous

the numerous acts or violations of the

law

that would uh constitute economic

violations

uh depending on who is the victim uh

what is the substance or the substance

of act and so on

so uh

a writer larson identifies the

characteristics

of the actor the motive

the means the context the consequences

legislative demarcations or the

competence that is needed to investigate

an act as essential to the definition of

crime

as economic nature but i would

uh shortly get back uh to my summary

of what constitutes economic crime in

our context

and what uh therefore requires

or justifies uh the

the actions or the instruments of the

mechanisms to uh

to fight crime especially economic crime

definition of clarity for economic

crimes is essential for a number of

reasons
one when we define economic crime uh

more precisely or specifically

identify we identify the distinctiveness

of economic crimes

and therefore what is common to all what

uh to all uh

to forms all forms of economic crime uh

the second thing

is that we it enables us to distinguish

between economic

and other forms of crime even if they

have

economic consequences especially for the

victims

and thirdly determining the

appropriateness

appropriate preventive mechanisms for

economic crimes

and this is the essence of our

deliberation

this afternoon now

uh according to uh the writer

or the practitioner uh dema this is a

south african

all times have economic consequences

and i've just alluded to that but uh in

some circumstances

it may uh uh uh it may be from the

from the this victim perspective it may

have economic consequences

of the perpetrator perspective it may

have economic consequences

uh in that sense then therefore all cry

economic

but that is a very loose and amorphous

definition

that will not help us or may not be

careful in our circumstances

now uh the essential elements

that are critical to the definition of

economic crime in my view

are three one

an economic crime constitutes an act uh

defined both as a a commission or an

omission

that is intentional and in conflict

with the established law or the

principle of public

particularly public officials are

involved

in actions or activities or missions

that uh tend to confer benefits to them

or to uh

other uh some of their

allies or friends or family members

now the second element is that uh

economic uh crime constitutes an act

which is designed

to confer to an individual
or an entity or to allow the law breaker

to derive some recognizable benefits

uh benefit for himself or herself his

family his friends

his or herself his family his friends

his tribe

or her friend tribe or party uh of

course

he uh tried with me in a linguistic

category

i i know that in indian context it might

have a different connotation

but in the african sense it is more of a

linguistic

group are people who are

in a nation that have a common language

or some other relevant group

okay

[Music]

[Music]

now due to network connectivity i think

doctor benson and the meeting

we should wait for the pencil

i think uh left

i have basically meanwhile as we wait

for uh

mr um mr agaya

dr i think i have one particular element

to ask
or rather discuss is one of the feature

of the economic crime

because of the the evolution of the

societies

and evolution of the institutions some

of the things which

actually dr richards has also pointed

out some of the things which were not

considered to be crying but

suddenly have become illegal and it

creates a lot of confusion among the

people

i think

[Music]

you can mute your mic

all right uh i trust that i have had to

go to a different device hopefully

this will not uh will not

cut off now i i i was talking a moment

ago

about the conceptualization of economic

crime in our context

and this is important for the purposes

of

developing and strengthening the

mechanisms to fight crime

especially economic crime and fraud and

therefore

thirdly i talked about two elements

the benefit the intentional act the

benefits

access

the benefits of the accounting and act

which in which the benefit derived must

also be seen as a direct return from the

specific act

of the violation of the law and

obtaining economic behavior

particularly attending economic behavior

or conduct

whether it is a banking fund

[Applause]

the global expense of

economic crime and fraud and how these

compare with our situation

in kenya now uh

we are familiar that the convergence of

computers and communication with

commerce

and financial services is a key factor

in the unprecedented

wave of economic crime in this century

the 21st century

the pro the pro differentiation of

movement of information

finance goods and services and people

present new risks uh presents new risks

and forms of econo

of economic crime
professor grabowski identifies several

major forms of economic crime which

confronts society

in this millennium and they include the

following

insurance fraud this mostly involves

fabrication of false insurance claims

and collusion between insurance firms

legal farms and so on and and

victims of our or patients and

others especially in medical insurance

fraud

and also a traffic accidents and so on

now uh fraud against governments that's

another element

and this mostly uh targets government

procurement of goods

services and watch uh

technical works bridges uh buildings

and so on and then the third one is the

fraud against employers

this involves investment or theft of

money

goods or services by employees by

employees

the other type of fraud is against

consumers mostly related to cheating

customers

for example supplying defective or

inferior goods
or services and deceptive advertising

then there is the telemarketing fraud

but particularly pertaining to use of

telephone or increasingly the internet

to defraud the public through acts like

fake business promotions

and online scams

there's also fraud against uh

shareholders and investors

where directors of companies

use companies collapsing leaving

investors and creditors

at a loss and this some of the reasons

why these companies collapse

uh because of uh deliberate acts

or measures or

lack of measures to protect the

shareholders and investors

in these companies then there's bribery

and corruption public officials

demanding or accepting finance financial

or other

considerations as a prize for doing

business

and then there's money laundering

proceeds

where process of crime or dirty money

undergo

a series of transactions to disguise

their illicit

origin and made them appear to have come

from a legitimate source

of clean money now based on the global

economic trends

economic crime statistics

we see that africa strips all the other

regions in the prevalence of economic

crime

going by the percentage or uh the

proportion

of uh of transactions that are uh

uh that are involved vis-a-vis

the economic output or the gdp

of these shows surveys by the global

accounting firm

price waterhouse coopers twc

for the period 2016 and 2018 placed

kenya

among the top three countries with the

highest economic crime prevalence

so in in 20

in 2016 kenya was ranked

third 2018 it was second it moved one

step

up

if i may

just indicates to you the percentage

south africa was tough

at 77 percent uh prevalence rates

kenya uh in 2018

in 2018 was the ranked second

i think or is the other way around uh

it's a

25 straight economic crime

uh then france in interestingly at 71

percent

uh uh i can share with you uh this a

little later on so that you can get a

picture

so uh the uh

the 2020 survey by pwc again

on economic climate force has identified

procurement fraud

at 15 bribery and corruption at 14

and accounting and financial statement

fraud at 14

as the three leading forms of economic

crime and fraud in kenya

this is a release statistics for

march march 20 2020

so so pwc concludes that in kenya

procurement fraud and bribery and

corruption have a correlation

with various cases of rent seekers in

procurement deals

seeking to profit illicitly by asking

for facilitation fees or

our ick bucks this is a fairly familiar

so public institutions by their nature

conduct a lot of business especially

with the corporations

and in the area of procurement good

services and workers have already

indicated

and these are characterized by bribery

of public officials

conflict of interest in decision making

fraud in bid

evaluations invoice fraud

particularly invoicing invoice cheating

for for example supposedly legitimate

products or services that have never

been delivered or carried out

are paid for uh through fraudulent means

and conniving of public officials and

private sector

and then of course fraudulent contract

obligations many of them are never

specific

enough or they keep on varying through

the

projects cycle

there are obvious economic impacts uh

and the organization for economic

cooperation and development

or ecb identity in 2016 identifies

the direct cost of corruption to include

loss of public funds

through miser locations higher expenses

and through inflated contract prices

billing for work not done and so on and

there is also the lower quality of work

services so contractors fail to meet

contract standards by reducing quality

of work or using inferior materials

indirect costs over action our public

procurement and fraud

on the other hand includes distortion of

competition limited market access

uh so those that have no capacity to

bribe or to manipulate

public officials and procurement

procuring entities

there's a lot of limited access to

market and so on and

the financial specifications of greece

both the reduced business appetite for

local and foreign investors

and then there's public apathy and the

disillusionment and lack of public trust

or weakening

trust in national governing institutions

including the regulators

so what are the measures to combat

economic crimes in our in our society

today

one integrity measure

that is developing policies and record

of product for civil service including

asset

declaration requirements and

whistle-blowing mechanisms

a lot of these are being strengthened on

on

on on a continuous basis

then there are transparency measures

these include

strengthening citizens and civil society

organizations

all in management of economic programs

including procurement

regulatory agencies like the capital

markets authority in the kenyan context

to allow for uh to to monitor and

and control and prevent and also take

investigate and even take uh

legal uh uh and administrative actions

uh for those in the uh in the securities

and stock markets

credit reference bureaus for those who

take credit

in a fraudulent manner or fail to pay to

pay back their loans

or engage in other such

financial impropriety then there is the

ethics and anti-corruption commission

which is a constitutional commission to

deal with this

then there's a direct rate on criminal

intelligence with expanding mandate in

various fields

to include even land transaction frauds

and also uh economic uh crime

then the the legal and legislative

responses

and this is uh both at the national

assembly of parliamentary level and and

also at this

uh the regional or what we call the

devolved government units the

uh the counties county governments we

have a two level

government the national for the center

central government and the

county governments where corruption has

become

pervasive and economic crimes are

widespread

and then of course oversight control

oversight and control mechanisms

including

integrated financial management

information system

i in and e procurement i f

m i s is a system that is controlled and

regulated by the
controller budgets uh

the controller badges and the audit uh

and

in the ministry of finance and its

purpose is to ensure

that public finances are not abused

or stolen through fraudulent activities

and then of course

stakeholder participation including

public information and sensitization

programs

and public notice buzz what are the

constraints to combating economic crimes

in kenya

one is the obvious collusion between

public officials and businesses

so that it is it becomes very difficult

and

uh or complicated to get the necessary

evidence to prosecute or

to suspect any doing where

the giver the receiver or the

particulars of crime

are very senior government officials and

most of it is

involves confidential or classified

government

documents state capture by the corporate

sector then there's political patronage

and
which is antithetical to fight to the

fight against procurement fraud and

manipulation

and weakening of juridical institutions

the police the investigative agency the

anti-corruption commission

and so on

totality they have some

weakness one form of weakness of the

other so uh

what are the possible options for

strengthening these measures against

economic crime and fraud

one is political commitment at the

highest level because the higher

the fight goes uh because most of this

crime happens at the middle level

and the low lower levels and of course

the proceeds

are sometimes shared upwards so

political commitment at the highest

level

would deter action uh where criminal

behavior economic criminal behavior at

the lower levels

of government or public administration

and

research there's a very weak link

between the research institutions

and the corporates and as well as

the law enforcement and uh business and

particularly government agencies so

research is the missing link and with

the strengthening of research in this

area

and collaboration between research

institutions the corporation

and government entities this fight would

be strengthened

then the distinctive action which should

be ongoing and continuous

then of course training and

strengthening

the staff in the various entities and

agencies

should also then cooperation between law

enforcement and the industry

international cooperation is essential

to this because a lot of these

involve uh players outside or

act uh actors that go beyond the

national boundaries

and then of course technological

innovations

and especially uh to fight and biometric

systems

uh to fight uh to help fight a financial

fraud

procurement fraud and so on

thank you and thank you for listening i

want to end it

there

thank you very much dr vincent

uh so we are very just

[Music]

you guys are delighted to see you and to

hear you

and the the the session i think is

over and the three decimals was they

were a lot of the time

and including keynote people so

first the speaker was the professor

sanjay matasar

and he had discussing the

tax division and uh interaction with the

economics and immorality

and uh before uh starting the

formal session because i was just

discussing professional methods

that if any nation has a strong economy

then the nation that definitely will

not only the definition of the crime and

tradition with the economics

so uh he

he is the uh actually the head of the

department

the economics and royalties

he has just share with us that

crimes in whatever form or category they

may fall

and impact mankind in a multivariate

base

uh the damage the damage democratic

development

for a democratic setup and the issue

social development

also and inhibitor industrial

development and endangered economic

development too

and the overall crime is the antithesis

of development

and is strongly visited against it

and it fares heavily on the economics

development is an innate urge nurtured

by nations

and the economic development

uh just in a very good manner

and the next speaker was dr

the faculty in the university of nairobi

kenya

and uh very elaborately he has discussed

and shared on the different topics of

the economy

and the crime that and what is the

concept of crime or the various kinds of

time

and the way to just abolish the

crime and
the status of the crime status status of

the crime

in africa particularly in the continent

of africa

and especially in the kenya and

he has further discussed this cyber

fraud also

and pointed out various

and just you can say that uh

what dr milton gaia has

elaborated and shared with us that is

due to often complex nature of financial

economic services and detecting

and preventing fraud with the economic

sector

for an almost instrumental challenge

the threats are both domestic and

international and they may they may come

from within the organization

or even the outside uh increasingly

internal and external protesters

combine to commit significant pregnant

acts

and the victims maybe the financial

sector of the economic sector

from stem cells or the customers of

those firms

and the the proceeds of fraud are rarely

generated in cash and uh it may be

either because or it may be either in

the

uh just paper concealed

maybe a hard currency maybe either

the soft currency also it's a new kind

of becomes and the funds that are the

target of the foreign

[Music]

introduction of the technical things he

has again and again joined

and shared thoughts but the you can say

in other words that

if the will is there definitely you will

complete a task uh again thanks dr

and uh today's uh uh speaker there's a

new keynote speaker

george richards and he's the

assured professor in the edinburgh

university

[Music]

uh has just pointed out uh industrial

revolution also

and the concept of the crime and

relations

this sorcerer has uh said that the crime

is crime

uh it's a very good police statement

that the crime is crime whoever has

committed it

whoever has committed it and uh dr

george youtube further

stated that the economy disaster the

region of economic crime have to be just

reformed

and uh the returns have suggested some

separate treatments also

uh in his keynote is speaking that

he has just uh shared with us that the

country is without

economic decades and

with the objective of ensuring uh

improved quality of

living for the citizens the hives

pairing with the have nots per monetary

and the material rates

became a norm i'll be mutual and press

equality

as i i refer to had conviction to the

child

saying that the good and they will go

together but try

saying that the quran it will go

together is the emergence of new forms

of crime

and more sophisticated at exploiting

loopholes

and opportunities and these are the

characters

characterized as economic crime

growingly

you know becoming the order of the tea

and robbing the masses of the assurances

of this state

i'm really very grateful to dr dr george

richard

uh he has just intended a thought

provoking lecture as a

speaker i'm personally very thankful to

all of these speakers

and uh on behalf of the university

in the change of cultural assumptions

that this type of crime is not relevant

or is not going to be prosecuted

and to embed a proper system of ethical

behavior

in all the agents of society with

honesty as a main principle only with

that

approach it would be possible to

construct resilient

institutional frameworks that contribute

to sustainable

development again thanks to

our speakers and uh it's my duty to just

uh

with tender thank underwater thanks to

mr mc history

uh with the doctor fellow institute of

social science is very very recruited

particularly in the humanities

thank you so much thank you so much all

the speakers

of the international delegates and thank

you so much

the all the participants national park

improvements and international

participants also

the symposium because of uh you people

pariksa sanjeev or

richard sir and you

uh you made this symposium

it's like a big successful event of this

international economy

as our my con this convener of this

international e-conference is busy

somewhere

and for the valedictory we have in

continuation we have the validity

session also

he is busy in preparing that uh schedule

so i would like to take the opportunity

to thanks and deliver my

energy to this

after hour

a police university and the center of

economic crime and counter corruption

studies

will not forget your this contribution

thomas mohammed al sam and

uh speaker dr richards

and i contact him on linkedin

to the participants in this event and he

just say

yes and we also talk to the

due to some technical issues

speech

and thank you so much dr benson again

we met in the last international

e-conference on coffee 19.

and thank you so much for that so

finally i would like to thank you so

much

okay mrs says again congratulation

thank you just to conduct a very good

symposium

thank you thank you very much for

inviting me um

how are you sir i'm good sir how are you

i'm fine i'm fine by god

and your praise everything is fine here

in india

whether there's some situation is very

grim about the

uh you can send it quite pandemic so

otherwise everything is okay

good good and what about doctor nagaya

are you okay

i think i'm left that's the text nice

meeting dr richards