Fraud fears deter global executives from investing in India: Kroll survey
Nearly 80% of respondents to the Global Fraud and Risk Survey believe middle management-level and junior employees are the culprits behind graft in companies.
At least one out of five global executives are apprehensive about investing in India because of the risk of fraud, a survey by risk solutions provider Kroll has revealed, The Economic Times reported on Wednesday. According to the Global Fraud and Risk Survey, nearly 80% of respondents cited middle management-level and junior employees as the key culprits behind fraud operations and graft in Indian companies.
Of all the respondents, 19% said they had been “dissuaded” from investing in the country because of security risks to businesses from threats such as employee fraud and cyber security concerns. Around 44% of those who participated in the survey said incidences of fraud had been discovered by whistleblowers, Mint reported.
Respondents to the survey reported fraud in four categories – corruption and bribery, management conflict of interest, market collusion and internal fraud, according to The Hindu. However, there was a drop in the number of respondents affected by fraud in India to 68% in 2016 from 80% in 2015.
Kroll South Asia chief Reshmi Khurana said the statistics revealed “the contradiction in the Indian economy”. “On the one hand, India is an attractive destination of foreign investors… and on the other hand, investors are deterred due to fraud, corruption and security concerns,” she said.