Posted by & filed under Accounting Careers, Fraud.

Description: If you’re working for the City of Hamilton, watch out if you are getting too chummy with city suppliers out on the golf course. City Auditor Charles Brown’s latest fraud and waste report noted that two city employees were hanging out on the golf course during working hours with a vendor who was pursuing a major contract with Hamilton. The investigation started after a tip from a taxpayer, but the golfers weren’t the only ones fraternizing with vendors and suppliers. Another City employee took five unauthorized foreign trips with a supplier while Brown’s report also noted vendors provided drinks to an employee Christmas party. In all, the report revealed eight employees were let go as a result of the incidents of fraud and waste.

Date:  November 23, 2021

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/hamilton/fraud-waste-report-golfing-with-vendors-1.6259423

Discussion points:

1) What would be wrong about employees accepting gifts from vendors?

2) Does your municipal government have a tip line for citizens to report potential theft or fraud by employees? Do you think it’s a good idea?

3) In chapter 7 of Wiley’s Financial Accounting: Tools for Business Decision-Making, you can find a diagram explaining the fraud triangle (see Illustration 7.2). How would this triangle be relevant to the situations we read about in this article regarding the problems at the City of Hamilton?

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