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Safaricom Sustainability Report 2016
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Risk assessments
Bi-annual risk assessments carried out by the Risk Management Division. These assessments are supported by in-depth audit
reviews of specific internal controls within the organisation and fraud reviews of processes that are suspected of having
become compromised.
Anti-corruption monitoring measures
FY16
FY15
FY14
Risk assessments (bi-annual)
9
7*
12
Audit reviews
20
19
32
Fraud reviews
11
6
13
Special request reviews
11
11
3
* reflects a change in methodology
Each of the nine risk assessments was conducted twice during the year and encompassed the following categories:
enterprise risk management, operational risks, strategic risks and ethics risks per strategic objective. Some of the key risk
items identified during the year included: adverse regulation, business disruptions due to systems instability, competition and
delays in rolling out key projects. Mitigation plans were then developed to counter any of the risks identified.
Fraud reviews
We also continue to take proactive steps to identify cases of fraud. These steps include using the fraud management system
to identify possible cases of fraud and to carry out in-depth fraud reviews to determine whether fraud had occurred within
key processes. Eleven fraud reviews were carried out. The fraud reviews have been key in uncovering frauds and also in
proactively enhancing controls to prevent the occurrence of fraud in the future.
Audit reviews
Twenty audit reviews were also carried out during the reporting period. The objective of the reviews was to obtain assurance
on the adequacy, design and operating effectiveness of internal controls. Eleven additional reviews were carried out that
were special requests from management.
Fraud investigations
Where unethical action was suspected during the year, investigations were undertaken. The investigations covered
various frauds, including asset misappropriation, fraudulent expense claims and corruption cases. The investigations led to
disciplinary action against members of staff and, in two cases, reporting cases to law enforcement officers and prosecuting
suspects.
Anti-corruption corrective measures
FY16
FY15
FY14
Fraud cases investigated
27
29
89
Outcomes of investigations:
Disciplinary warnings
13*
13
16
Dismissals
18*
58
56
Cases reported to law enforcement agencies
2
4
7
* The Annual Report disclosed 18 disciplinary warnings and 16 dismissals. Subsequent to its publication the numbers were assured as 13 disciplinary warnings and 18
dismissals.
While the number of investigations carried out during the year was substantively the same as FY15, the average number of
people implicated per case dropped dramatically and resulted in a marked reduction in the number of dismissals, down to
18 from 58 in FY15.
Although every case of fraud is one too many, this trend is gratifying in as much as it suggests that the nature of fraud within
the organisation may be changing from the collusive behaviour of groups of people to the isolated actions of individuals.
It is still early days, but this positive trend could be attributed to the continuous ethics awareness training being provided,
growing vigilance on the part of employees and the fact that swift action is taken against those found to have engaged in
fraud.