According to him, shielding such culprits would have adverse effects on the bank’s operations.
“Based on reputation issues, control lapses that lead to fraud in banks are not reported. This should not be the case, they need to hype the fraud cases, make noise about it to the highest level. This will send signals to those who are engaging in it or intend to do so, to desist from it,” he said.
Mr Nortey-Newman was speaking at a workshop on the risk management perspective on corporate fraud organised by the Institute of Loans and Risk Management, Ghana (ILRMGH) in Accra.
He said in Ghana, many banks did not report corporate fraud because of prestige, but when they failed to report, the perpetrators saw the opportunity to do more.
“When a company comes down because of fraud, it does not only affect reputation, but it also affects families. If somebody steals GH¢1, hype it like GH¢100,000 has been stolen. Banks should never hide it,” he said.
The President and Chairman of the Governing Council of the Institute, Mr Adam Sulley, urged members of the institute to be disciplined in order to become one of the best professional bodies in the country.
Mr Nortey-Newman said it was imperative for corporate organisations to put in control systems to be able to detect fraud.
“Control systems are very important because they will help you detect these fraudulent activities. Although they are not absolute, they are still necessary. Control lapses that lead to fraud are often not reported but with every fraud that occurs, there is a control lap,” he said.
He said anyone who was capable of perpetrating financial crime did so regardless of age, gender, race or educational level, explaining that whenever a fraud is committed, it comprises three key players; employees, outsiders or collusion between employees and outsiders.
“Banks must initiate major investigations and forensic audits at the first sign of questionable financial transactions and there should be zero tolerance for fraud at all levels without exception,” he added.