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OUR MATERIAL MATTERS
| GOVERNANCE, RISK & REGULATION |
NETWORK QUALITY | ENVIRONMENTAL RESPONSIBILITY | INNOVATION |
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ROBUST RISK MANAGEMENT
We use a combination of risk assessments, audit and fraud reviews to monitor
and manage risk throughout the company. We also benchmark ourselves against
other leading telecommunications operators and independent assurance is
provided through both internal and external audit functions. As a company, we
also endeavour to apply the Precautionary Principle to all our activities to help
ensure that we continue to act as a responsible corporate citizen.
Monitoring corruption and fraud
Anti-corruption monitoring measures
FY17 FY16 FY15
Risk Assessments (bi-annual cycle)
8
9
7
Audit Reviews
33
20
19
Fraud Reviews
13
11
6
Special Request Reviews
1
11
11
Eight risk assessments were conducted across the organisation and these
were 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.
Each of the risk assessments 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: insecurity,
regulatory risk, market disruption and inadequate capacity on key systems.
Thirty-three 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. One additional review was carried out
during the year that was a special request by management.
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. Thirteen fraud reviews were carried out during the year. The
fraud reviews led to uncovering fraud and to identification of control weaknesses.
Control recommendations were made for the control weaknesses.
Addressing corruption and fraud
Anti-corruption corrective measures
FY17 FY16 FY15
Fraud cases investigated
33
31
29
Outcomes of investigations
Disciplinary warnings
14
12
13
Dismissals
52
16
58
Cases reported to law enforcement agencies
3
2
4
While the number of investigations carried out during the year was substantively
the same as FY16, the number of staff dismissed for fraudulent behaviour
increased to 52. This was primarily due to an enhanced review process, which
targeted a single area of concern and unearthed fraud schemes that were
previously concealed. The types of fraud that led to dismissals included:
theft; asset misappropriation (cash collections and devices); policy breaches
(unauthorised access to data systems); and fraudulent SIM swap/M-PESA Start
Key issuance. While we are disappointed by the number of people who have
been involved in fraudulent activities, it is encouraging to note the increasing
effectiveness of our investigations and the clear illustration of a ‘no tolerance’
approach from management.
Helping customers tackle fraud
During the year, we continued to help customers safeguard themselves from
social engineering attacks and the criminal syndicates that target M-PESA users.
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