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Anti-fraud tips from the Mango coffee scandal

by , 13 August 2013
What's the first thing you do when you get on a long national flight? Order a cup of coffee, of course. That's why Mango airlines' Hein Kaiser found it strange that in a packed airplane with 186 passengers, only two or three had bought coffee! Even more shocking, this was happening on every flight. Only a fraction of the passengers would order tea or coffee. But he couldn't believe his eyes when in-flight cameras revealed the truth...

In-flight cameras revealed that the cabin crew was defrauding the airline by pocketing the payments for tea and coffee on flights, reports News24.

Rightfully, Mango fired the 24 cabin crew involved. It's also implementing new anti-fraud measures to make sure this doesn't happen again.

This should serve as a warning to you!

Here's what Labour Law for Managers says are the best ways you (and Mango) can fight company fraud…

Use these tips to make your business fraud-proof
  1. Ensure there are always checks and balances in place.  For example, no one person should have the power to requisite, write and sign cheques.
  2. Keep proper records company-wide, and have random inspections to make sure the records are accurate. Mango could have used this method to make sure the cabin crew recorded every coffee sale.
  3. Inspect fuel card statements and bank statements for unusual patterns.
  4. Don't let staff use company credit cards for personal expenses, this opens up a whole range of vague and exploitative treatment.
  5. Don't do business with the relatives of board members or employees. This opens up opportunities for fraud.
  6. Have clear meeting minutes. This may seem like an odd anti-fraud tip, but you can use meeting minutes to record official approval for expenditures. This way, no employee can have an alibi of having management approval for committing fraud.

With these anti-fraud tips in mind, you'll never have to endure a Mango coffee scandal in your business!

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