An analysis of fraud auditing in the Dr. Kenneth Kaunda District Municipality

Abstract

This research study investigated the fraud prevention measures in the Kenneth Kaunda District Municipalities. The objectives of this study were to: (a) analyse the fraud prevention policies and programmes within the Kenneth Kaunda District Municipalities including Matlosana Local Municipality, Tlokwe/ Ventersdorp (North-West 405), Maquassi Hills Local Municipality and the District Municipality of Kenneth Kaunda and (b) provide recommendations for developing fraud prevention policies and programmes. To achieve the objectives of this study, a quantitative research approach was followed. This was done by distributing 70 questionnaires to be completed by and collected from participants representing all four Local Municipalities in the Dr Kenneth Kaunda District Municipality and these were then analysed. Participants included Municipal Managers, Directors, Supervisors, Specialists and General Municipal workers within the District Municipality of Kenneth Kaunda. The completed questionnaires were then sent to the Statistical Consultation Service of the North-West University for analysis. Through this study, fraud prevention measures in the District Municipality of Dr Kenneth Kaunda were diagnosed as well as the underlying causes and effects of fraud. The study further highlighted the actions taken to combat fraudulent activities in the municipalities, the impact of such actions, the challenges faced by the local municipalities as well as the way forward. The results of the study found that in the Kenneth Kaunda District, there is not sufficient action being taken against those who commit fraudulent activities. The study also highlighted the need to enhance municipal anti-fraud strategies. Political will was also highlighted as underlying the lack of action against fraudulent behaviour. The results further indicate a positive relationship between lack of fraud awareness and acts of fraud. From these results, it is concluded that the strengthening of anti-fraud strategies, consequences for fraudulent behaviour, continuous fraud-awareness campaigns not only targeted at Municipal employees but also to all stakeholders of the Municipalities have to be prioritized. In an attempt to close the gap between previous research and this study, recommendations were made to improve the fraud prevention measures in the Local Municipalities.