Abstract:

This paper provides an empirical analysis of Financial fraud from NGOs in Uganda. Financial fraud was measured using assets misrepresentation, fraudulent statements and corruption. The study anchored on fraud triangle and fraud diamond theories. The population was 1,264 NGOs in central region with valid permits. The study used primary data collected from 302 NGOs out of 304. A cross sectional descriptive design was used in the study while data was analysed using descriptive statistics. The study finds that; the key enabler of financial fraud is opportunity, area most prone to financial fraud is corruption while financial fraud could be managed through prevention. The study recommends that; ethical values, statements and standards be developed and made available to NGOs stakeholders while policies on kickbacks should be developed. Pre-employment check should continue as a preventive measure. It is further recommended that this study be done for public organisations within the same area to have a full understanding of the nature of financial fraud in central Uganda. The same should be replicated in other regions of Uganda. While the prevention strategy of financial fraud is the most effective, there are other areas where opportunities to commit financial fraud exist and the attention of both development partners and NGOs should focus on them.

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