Fradulent Activity

This document contains EmergX Global Limited policy on fraud. The purpose of this Statement is to remind staff of the risks of fraud, theft and corruption, and to outline EmergX ’s policies and responsibilities and the procedures that are followed when fraud, theft or corruption is suspected or identified.

Reviewing systems and procedures when a fraud has occurred to prevent similar frauds

Updated on 24th June 2024

  • EmergX  has a zero tolerance to fraud and corruption and is committed to:
  • Preventing fraud and corruption from occurring developing and maintaining effective. controls to prevent fraud
  • Taking all allegations of fraud seriously investigating all allegations of fraud appropriately.
  • Maintaining procedures for assessing the risk of fraud, notifying fraud, investigating it.
  • Educating staff and partners on fraud awareness and the relevant procedures

EmergX  has established a Fraud Response Plan, which sets out guidance in the event of fraud being discovered or suspected and how investigations will be conducted and concluded. This plan forms part of EmergX’s anti-fraud policy. EmergX  requires staff and partners to act honestly and with integrity at all times and to safeguard the public resources for which they are responsible. EmergX  will not tolerate fraudulent activity and every case of attempted, suspected or proven fraud and/or corruption will be thoroughly investigated and dealt with appropriately in accordance with the Fraud Response Plan. There will be consistent handling of all attempted, suspected or proven fraud cases without regard to the position held or length of service of the individual(s) involved. Errors may be made by staff in the course of their work that might be interpreted as fraud, but in any case of alleged fraud the degree of intent will be an important factor 

EmergX  is committed to ensuring that opportunities for fraud and corruption are reduced to the lowest possible level of risk.
 
This policy is concerned with internal and external fraud, committed against EmergX  by EmergX  employees (including agency staff engaged by EmergX  and non-executive directors), suppliers of goods and services, agents working on behalf of EmergX, contractors in the course of their work or other persons and organisations that EmergX  funds or has an interest in.

  • What is Fraud

The Fraud Act came into effect in January 2007 and introduced a new general offence of fraud which can be committed in three ways:

  • Fraud by false representation

For instance, if someone makes a false representation and intends by making the representation to make a gain for himself or another, or to cause loss to another or expose another to risk of loss. A representation is false if it is untrue or misleading, and the person making it knows that it is, or might be, untrue or misleading. The person making the false representation, failing to disclose information or abusing their position must do so with the intention of making a gain or causing loss or risk of loss to another. The gain or loss does not actually have to take place.

  • Fraud by failing to disclose information

For instance, if someone dishonestly fails to disclose to another person information which he is under a legal duty to disclose and intends, by failing to disclose information, to make a gain for himself or another, or to cause loss to another or expose another to risk of loss

  • Fraud by abuse of position

For instance, someone occupies a position in which he is expected to safeguard, or not to act against, the financial interests of another person, and he dishonestly abuses that position, and intends, by means of the abuse of that position, to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss
The Act created new offences of obtaining services dishonestly and of possessing, making and supplying articles for use in frauds.

  • Examples of frauds that may be perpetrated against EmergX are:
  • The dissemination of an email to large groups of people falsely representing that the email had been sent by EmergX.
  • Theft, the misappropriation or misuse of assets or funds for personal benefit.
  • Bribery and corruption – offering, giving, soliciting or accepting an inducement or reward that may influence the actions taken by EmergX or its staff, for example in the procurement of goods and services.
  • False accounting and/or making fraudulent statements with a view to personal gain or gain for another: for example falsely claiming overtime, travel and subsistence, sick leave or special leave (with or without pay), giving incorrect information, untrue details or fake invoices.
  • Externally perpetrated fraud against EmergX, for example in the procurement and delivery of goods.
  • Being under undue influence – failing to disclose an interest, failing to record hospitality or offers of gifts.
  • Extortion – obtaining favours by the use of threats.
  • Conspiracy, collusion and corruption – entering into agreements with others to carry out illegal activities.
  • Money laundering.
  • Possible consequences of fraud to EmergX

These Include:

  • Loss of resources or property.
  • Failure to obtain value for money and/or required outputs, failure to obtain the goods and services we have paid for with public money.
  • Costs and disruption from investigation.
  • Damage to EmergX’s reputation and standing with partners and stakeholders.
  • Adverse publicity.
  • Possible Consequences of fraud to the individual

All cases where a suspicion of fraud has been raised will be dealt with appropriately in accordance with the Fraud Response Plan. Individuals involved in fraudulent activity may face the following consequences:

  • Most of the categories of fraud set out above are criminal offences, and if convicted, the perpetrator may be subject to the criminal punishment of fines, imprisonment and recovery of assets, through the Magistrates or Crown Court.
  • The alleged commission of any fraudulent activity is a disciplinary matter for that employee, and the person involved will be subject to the Disciplinary Procedure in EmergX’s Staff Handbook.
  • If the property obtained illegally belonged to EmergX it can be recovered through the Civil Courts, and the person involved (and their assets) can be subject to civil claims, injunctions and penalties.
  • Avenues for Reporting Fraud

EmergX has in place procedures for reporting suspicions of fraud without fear of prejudice or harassment
 
Any suspicions of fraud should be reported as soon as possible.
 
All matters will be dealt with in confidence and in strict accordance with the terms of the Public Interest Disclosure Act 1998. The statute protects the legitimate personal interests of staff. Vigorous and prompt investigations will be carried out into all cases of actual or suspected fraud discovered or reported.

  • Responsibility

Depending on an individual’s responsibilities within EmergX, the Board and employees will have different roles to play in relation to identifying, reporting, investigating and dealing with fraud.

  • Chief Executive and Accounting Officer

As Accounting Officer, TNA’s Chief Executive is responsible for managing our risks, including fraud. EmergX faces a range of fraud risks specific to our business, from internal and external sources. These are set out in Managing Public Money. The risk of a given fraud is usually measured by the probability of it occurring and its impact in monetary and reputational terms should it occur. EmergX’s Chief Executive is responsible for establishing and maintaining a sound system of internal control that supports the achievement of departmental policies, aims and objectives. The system of internal control is designed to respond to and manage the whole range of risks that a department faces. The system of internal control is based on an on-going process designed to identify the principal risks, to evaluate the nature and extent of those risks and to manage them effectively. Managing fraud risk will be seen in the context of the management of this wider range of risks.

  • Director of Finance and Performance

Overall responsibility for managing the risk of fraud has been delegated to the Director of Finance and Performance. Their responsibilities include:

  • Developing a fraud risk profile and undertaking a regular review of the fraud risks associated with each of the key organisational objectives in order to keep the profile current;
  • Establishing an effective anti-fraud policy and fraud response plan, commensurate with the level of fraud risk identified in the fraud risk profile;
  • Identify appropriate targets to combat fraud;Designing an effective control environment to prevent fraud commensurate with the fraud risk profile;
  • Establishing appropriate mechanisms for:
     reporting fraud risk issues;
     reporting significant incidents of fraud to the Accounting Officer
    reporting to HM Treasury in accordance with Government Accounting 2000
  • Co-ordinating assurances about the effectiveness of anti-fraud policies to support the Statement of Internal Control.
  • Liaising with the Audit Committee.
  • Making sure that all staff are aware of the organisations anti-fraud policy and know what their responsibilities are in relation to combating fraud.
  • Ensuring appropriate anti-fraud training and development opportunities are available to appropriate staff in order to meet the defined competency level.
  • Ensuring that vigorous and prompt investigations are carried out if fraud occurs or is suspected.
  • Taking appropriate legal and/or disciplinary action against perpetrators of fraud.
  • Taking appropriate action against line managers where supervisory failures have contributed to the commission of fraud, this might be retraining or possible disciplinary action.
  • Taking appropriate disciplinary action against staff who fail to report fraud.
  • Taking appropriate action to recover assets.
  • Ensuring appropriate action is taken to minimise the risk of similar frauds occurring in the future.
  • Directors, Heads of Department and Executive Reports
  • Ensuring that an adequate system of internal control exists within their areas of responsibility and that controls operate effectively.
  • Preventing and detecting fraud.
  • Assessing the types of risk involved in the operations for which they are responsible.
  • Reviewing and testing the control systems for which they are responsible regularly Ensuring that controls are being complied with and their systems continue to operate effectively.
  • Implementing new controls to reduce the risk of similar fraud occurring where frauds have taken place.
  • Heads of Team will ensure that their teams comply with the above duties.
  • Heads of Team are expected to be aware of how a team member might report suspicions of fraud.
  • Heads of Team are expected to follow the Fraud Response Plan.
  • Heads of Team will keep each team updated on changes in this Policy.
  • Conclusion

EmergX takes fraud and potential fraud seriously.
 
The circumstances of individual frauds will vary, however it is important that all are vigorously and promptly investigated and that appropriate action is taken.
 
Successful fraud prevention involves creating an environment which inhibits fraud. It is the responsibility of all staff to ensure that such an environment is created.
 
A manager who is alert to the possibility of fraud and who acts accordingly is a powerful deterrent against fraud.

Facebook X-twitter Linkedin

Transforming Challenges into Opportunities in Underserved Markets

Transforming
Challenges into
Opportunities in
Underserved Markets

  • 2024

Join our newsletter

Subscribe to EmergX’s newsletter for exclusive updates, expert insights, and success stories. Be the first to know about new opportunities, events, and impact investing trends. Join us and be a catalyst for change.

  • 2024
  • 2024