The Real Estate and Construction industry is not immune to risks of fraud, corruption and serious misconduct and organisations need to be alert to indicators of wrong doing from the earliest opportunity.

The 2016 Association of Fraud Examiners’ global study of fraud and abuse, ‘Report to the Nations on Occupational Fraud and Abuse’ found that tip-offs are more than twice as effective as any other means of identifying fraud.  

Providing all stakeholders (employees, contractors, suppliers and others) with an independent and confidential means to report suspicions or evidence of wrongdoing to the right people at the right time is essential. This can be achieved with a Whistleblowing Program that includes a confidential reporting service.

Whether the service is provided in-house or by an external provider, it needs to be benchmarked against Australian Standard 8004-2003Whistleblower Protection Programs for Entities and Part 9.4AAA of the Corporations Act 2001 (Cth).

Next article: Buyers and sellers beware.