Fraud by manager - Secret ownership

Example: The RA requires its managers to declare conflicts of interest.  An RA contract supervisor has a secret ownership interest in a contractor which undertakes road repairs for the RA.  The interest is registered in the name of a friend.  Supervisor does not declare this interest to the RA. Supervisor is in charge of RA contracts for road repairs, and ensures that his company wins work from the RA and is paid for work not undertaken.

Fraudulent acts by the manager:

• Failing to declare his interest in the contractor.
• Ensuring that his contractor wins work and is paid for work not undertaken.

Result:

• Manager wrongfully receives additional profit.
• RA loses money, as the manager, due to the conflict of interest, is ensuring overpayment by the RA of the contractor.