Six ex workers of AG Ltd got charged in connection with the payment of $86,319.04 to Ontime Stationery and Shavel Stationery and $276,625.33 to Phoenix Hardware.

The six workers are Tom, Sera, Jennice, Alice, John and Liam

All five assessors found:

• Tom guilty of one count of abuse of office and 35 counts of causing a loss.
• Sera guilty of one count of abuse of office and 34 counts of causing a loss
• Jennice guilty of one count of abuse of office, 13 counts of causing a loss and one count of obtaining a financial advantage.
• Alice guilty of one count of abuse of office and nine counts of causing a loss.
• John guilty of one count of abuse of office and five counts of causing a loss.
• Liam guilty of one count of abuse of office and two counts of causing a loss.

The owner of Ontime Stationery Supplies, Shavel Stationery Supplies and Phoenix Hardware Engineering and Supplies Ltd, Brick was charged with obtaining a financial advantage.

Brick had pleaded guilty and is now awaiting sentencing. He also gave evidence as a prosecution witness in the trial.

It is alleged that the six caused a loss to AG Ltd in the sum of $362,944.37 in 2010.

They allegedly did arbitrary acts for the purpose of gain in facilitating the processing of false payments to be made to three companies namely, Ontime Stationery Supplies, Shavel Stationery Supplies and Phoenix Hardware Engineering and Supplies Ltd.

Justice Brendon said Brick admitted that he received payments for supplies that were not delivered to AG Ltd.

He said Brick said that he provided invoices and received cheques, which he would then cash and later give half of the money to Jennice.

The three who chose to give evidence were Tom, Sera and Liam.

Justice Brendon stated that according to the evidence produced, a total of 101 transactions were made to the three companies through 60 cheques.

A total of $86,319.04 was paid to Ontime Stationery and Shavel Stationery while a sum of $276,625.33 was paid to Phoenix Hardware.

Justice Brendon stated that Brick when giving evidence stated that he provided quotes to the AG Ltd upon request from Jennice who also told him of what to state in the quotations.

Required:

You will evaluate the

• Effects of the above fraudulent activity.
• Governance, Ethics and Accountability which enabled the fraud to happen.
• Recommendations on how to control the fraud.