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Winnipeg Free Press - PRINT EDITION
City's fraud line logs fewer than 10 reports since April
WINNIPEG officials say a small number of tipsters has reported instances of fraud and waste to an internal city hotline.
The City of Winnipeg launched a fraud hotline in April for employees to report tips about wrongdoing in city departments. The move came after an audit found many cases of waste and fraud likely go unreported because the city requires staff to report allegations to a supervisor.
Fraud includes things such as misuse of city funds or resources, duplication of work, unethical behaviour, and confidentiality breaches.
City of Winnipeg communications director Steve West said in an email the city's auditor is not "in a position" to disclose how many tips have been reported to the hotline. He said the auditor will provide an annual report on hotline activity to council's audit committee in early 2013.
West said the number is low at this early stage and fewer than 10 reports were made between April and July. He said it would be inappropriate to be more specific.
"I think the main point is it's not about the volume of numbers coming in, per se, it's more about providing a safe confidential way employees can report their suspicions of wrongdoing," West said.
West said in a statement the auditor has overseen the fraud hotline, which is operated by a third party. Tipsters can report instances of wrongdoing by phone or via the Internet, he said.
West said the auditor reviews each reported case and launches an investigation, if necessary. He would not disclose whether the hotline has prompted any investigations.
West said the city will support and protect employees who, in good faith, report any suspected acts of fraud, theft, misappropriation, or other irregularities. Retaliation against anyone who makes an allegation or participates in an investigation would be considered a violation of city policy, he said.
Prior to the hotline launch, an audit said only three incidents of fraud had been reported since Winnipeg first created a fraud-reporting policy in 2006, including two incidents in 2007 and one in 2008.
The report said a typical Canadian organization loses five per cent of its annual revenue to fraud every year. Other cities such as Calgary, Ottawa, and Toronto have also implemented fraud hotlines.
Republished from the Winnipeg Free Press print edition September 4, 2012 ??65535
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