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Fri Jan 11, 2019, 04:40 PM

Fraud is "common" in the construction industry

Fraud in the construction business is “commonplace and in some cases endemic across Australia, Canada, India, the UK and the US,” according to a new report from Grant Thornton, amassing a global price tag of up to $860 billion today—between 5% and 10% of total revenues. The accounting and advisory group projects that annual fraud cost in the sector could rise to $1.5 trillion by 2025.

“The greatest threat of fraud comes from within—from employees and senior management,” said David Malamed, fraud expert at Grant Thornton Canada.

While the risk of insider fraud is highest, the odds of fraud in a construction project increase drastically with the number of stakeholders. The primary sources of major frauds in the sector include billing fraud, bid rigging, money laundering or tax avoidance, theft or substitution of materials, bribery or corruption, false representation (of documents, figures, certificates), change order manipulation and fictious vendors, LiveMint reported.

https://www.riskmanagementmonitor.com/construction-fraud-costs-an-estimated-860-billion/

Now let's give 5.7 billion dollars to a guy who had his charity closed because it was a slush fund so he can construct a wall.

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