Hurdles to fighting white collar crime

By Pravin bowry

The colloquial term "white collar crime" referring to financial criminal activities or insider dealings or offences committed primarily by persons at management level, is well known.

Kenyans come across examples of these crimes from time to time, when the tip of the iceberg emerges in some reported matters in the press.

Horrific picture

The full extent and magnitude of these crimes surfaces rarely.

Crimes in the highly competitive and volatile corporate world go unreported, even if discovered, to preserve the image of the companies.

Attitudes of the criminals, the victims, and the organs fighting crime paint a horrific picture, when viewed from the backdrop of laws which are not applied or which have been rendered impotent or laws where punishment is not commensurate with the crimes.

The collective extent of the crimes such as money laundering, cyber-crime, corruption, procurement offences, drugs, human and organ trafficking and banking frauds affect both the public and private sector.

The cost of these crimes to the development of the country is un-measurable.

Some of the disjointed organs fighting these crimes are the Criminal Investigation Department’s Serious Fraud Squad and the Banking Fraud Unit, Kenya Anti-Corruption Commission and the Public Procurement Oversight Authority. Other institutes engaged in the fight are beginning to emerge, but are not fully operational.

A sad example

The proposed Financial Reporting Centre under the Proceeds of Crime and Anti Money Laundering Act, an enactment born in December 2009 and not yet given a commencement date, is a sad example of the country’s will not to put in place a machinery to combat the ill of money laundering despite international pressure.

A lukewarm attempt to fight cyber crime was made by the enactment of Kenya Communications (Amendment) Act and computer related crimes are costing the baking industry for example up to two hundred fifty million shillings per month. Kenya is and will always remain a warm breeding ground for cartels of criminal activity unless crime detection and prevention is confronted collectively, and not in a disjointed, piecemeal manner.

And what justification is there for banks who have been defrauded billions of shillings to keep quiet to protect their images?

Accounting watchdogs such as the Auditor-General and Kenya National Audit Office (KENAO) can and should play a greater role in the combating the white collar crime hand in hand with other organs.

The fight against crimes is hampered by non-availability of modern and up-to-date scientific mechanisms, to trace and punish well executed and intricately planned schemes. The antiquated 1932 Penal Code and 1948 Companies Act and the old Indian based Criminal Procedure Code and Evidence Act needs to be over hauled in tandem with realities of crime prevention of modern day.

Only way forward

Mechanisms to fight modern day crime by a one-stop think-tank with ruthless expertise and scientific back-up is the only way forward. And which is the lead agency to lead Kenyans?

The new-look police force, Attorney General’s office and Director of Public Prosecution’s office? Crime detection and prevention is now a science and the earlier we put our resources towards this cause the better of the country will be tomorrow. .

The writer is an Assistant Director with KACC.

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