Finance


Sector Focus Counting the cost of recruitment fraud


Recruitment fraud is costing UK organisations £23.bn a year according to new research from audit and tax expert Crowe, in conjunction with the University of Portsmouth’s Centre for Counter Fraud Studies. Recruitment fraud – including


lying on applications, using false or fabricated documents and/or arranging false references – is allowing applicants to secure positions as senior executives and, even more worryingly, as doctors and pilots, the report has found. In an horrific incident which


mirrored the Hollywood blockbuster ‘Catch Me If You Can’, an individual secured a position as a commercial airline pilot based on a fake application, and was working in the role before the fraud was discovered. Following an investigation, it


transpired that the individual was a serial offender with previous convictions. He was caught,


More funds for Rover creditors


Liquidators at PwC are to distribute a further £5.2m to unsecured creditors, including former employees, of Powertrain, part of the MG Rover Group and which manufactured engines and gearboxes. The liquidators of the


crashed car group have previously distributed some £50.9m to unsecured creditors. This has been a result of more than 10 years of work by PwC, in pursuing the recovery of funds from an overseas group company, working closely with a German liquidator. The Powertrain dividend is


being returned to around 1,700 unsecured creditors, including 1,200 former employees. Midlands-based MG Rover Group went into administration in 2005, leading to 6,000 employees losing their jobs. Partners from PwC were appointed as administrators, with the process converting to liquidation a year later. PwC Midlands region


chairman, said: “We have now returned almost 40p in the pound to Powertrain creditors, which is a great result at this stage of a liquidation process for former employees and suppliers.”


‘In many cases, organisations are unwittingly welcoming a Trojan Horse with open arms’


prosecuted and sent to jail. Costs associated with a bad hire


include lost money spent on training and the recruitment process, reduced productivity, internal investigations and disciplinary proceedings, aside from any external sanctions and reputational damage. Crowe says that once fraudsters


gain employment, they often engage in further misconduct against their host organisations, such as fraud, theft or corruption. With access to sensitive data


and private company information, unscrupulous employees pose a serious security threat and


New owners: Carl Brazil (left) and Scott Lewthwaite


Fighting fraud: Jim Gee


exacerbate the likelihood of a data breach. Jim Gee, national head of


Forensic Services at Crowe, said:


“Recruitment fraud is a serious problem, for organisations of all shapes and sizes. “Initial misrepresentation or misleading information presented on a CV is often seen as being little more than ‘a white lie’, but it can and does lead to bigger financial and reputational costs down the line. “In many cases, organisations


are unwittingly welcoming a Trojan Horse with open arms. Once ‘inside’, dedicated fraudsters are emboldened and double-down on their deception, making further misconduct commonplace. “The case studies in the report


explored may look like something from a Hollywood movie, with bogus bankers and fake pilots, but this is a very real threat. “With fraud growing 50 per


cent in the past 10 years, the question fraudsters may often ask themselves is not ‘why would we do this?’ but ‘why wouldn’t we?’”


Bank’s interim CFO steps up


Al Rayan Bank has appointed Amir Firdaus as chief financial officer (CFO), based at the bank’s operational headquarters in Birmingham. Mr Firdaus (pictured) had been


interim CFO, and prior to this he served as treasurer, after joining the UK’s largest Islamic bank in 2016. He has helped to lead Al Rayan


Redditch tool maker gets new owners


Close Brothers Asset Finance has supported a Redditch-based manufacturer with its management buy-out. Able Tooling, of Arthur Street, has been bought out by two long term


employees, following the retirement of its founder and former owner, Nigel Rhodes. The new owners are Carl Brazil, production director and Scott


Lewthwaite, managing director. Close Brothers regional manager Simon Parker said: “The company has


been trading for nearly 30 years and is a very well-run business with a range of high-value machine tools. This allowed us to offer a refinance deal using the equity in the machinery to part fund the acquisition of the business.” Scott Lewthwaite said: “We are delighted to have the opportunity to take


this business to the next level, with the help of our partners, including Close Brothers Asset Finance. We have a team of skilled and dedicated toolmakers and some excellent machinery to take advantage of in our quest to double the turnover.” Carl Brazil added: “We have always enjoyed a strong order book at Able


Tooling and thankfully neither Brexit nor the downturn in the automotive sector has impacted us. We are fortunate to have a diverse customer base across a broad range of industry sectors.”


Bank through several important developments for Islamic finance in the UK. He was part


of the team that secured a public credit rating from Moody's Investors Service, the first time that an Islamic bank in the UK had achieved this. He also led the team that implemented the first ever public Sukuk (Islamic bond) in a non- Muslim country. Mr Firdaus has more than 15 years


of experience in the finance sector in the UK and South East Asia, having worked for various banks including Aldermore Bank and Sainsbury’s Bank, as well as BinaFikir and UEM Group in Malaysia. He said: “Al Rayan Bank is the


pioneer of Islamic finance in the UK. I’m honoured to have been able to play a part in its success so far and am looking forward to working with the other members of the bank’s executive management team, as well as the board to build an enduring British banking brand.”


June 2019 CHAMBERLINK 55


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