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

Thesis (MBA) North-West University, Mafikeng Campus, 2004The fraud prevention measures in Unemployment Insurance Fund, North West Province, were evaluated in this study. The manual on fraud prevention 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 about the related problem. In reviewing literature, it was found out that fraud had an adverse effect in any business, and the best way 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 staff of Unemployment Insurance Fund throughout the North West province. The questionnaires were aimed at identifying the most vulnerable areas to fraud, 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 respondents. 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 ineffective internal controls, lack of strict supervision, income disparities and low salaries of lower level employees. It also came to light on the study that there has not been any significant change in fraud since the 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 supervision, intensive investigations and awareness campaigns what is essential to effectively reduce the level of fraud in the UIF is effective implementation of the preventive oriented internal controls coupled with strict supervision.Master