The following terminologies used in this document have been defined and described to serve as a guide for users of the document.
4.1. Fraud
Fraud is an intentional, false representation or concealment of a material fact, for inducing another to act upon it, to his or her detriment, and to the direct or indirect benefit of the perpetrator. Fraud can be committed by internal parties such as employees, external parties such as vendors, or both, by collusion.
An act will be categorized as being fraudulent in nature if the act has the following characteristics:
- Intent to commit fraud;
- Direct or indirect benefit;
- Loss suffered by the victim;
- Attempt to conceal the
According to the Association of Certified Fraud Examiners (ACFE), occupational fraud is classified as follows:
- Corruption
- Asset Misappropriation
- Fraudulent Financial Statements
4.1.1. Corruption
- Inappropriate relationships with third parties resulting in a conflict of
- Bribery, where someone is influenced by payment or benefit in kind to unreasonably provide advantage to another through utilization of his or her
- Giving or receiving kickbacks from vendors, transporters, customers, distributors, other service providers, among
- Illegal
4.1.2. Asset Misappropriation
- Skimming (theft of cash that has not yet been recorded in the accounting system) and cash larceny (theft of money that has been recorded in the accounting system)
- False invoicing via inactive companies, false invoicing via collusion with vendors and purchase of items for personal benefit made with Eterna
- Falsification of amount of sales made by a sales person to earn more (or undeclared)
- Theft, willful mismanagement or willful destruction or loss of assets g. Inventory (by employees or transporters.)
- Theft or misuse of non-cash assets, including supplies, fixed assets,
- Disclosing confidential and/or proprietary information to any third party without authorization.
4.1.3. Fraudulent Financial Statements
- Intentional misstatement or omission of material information in the organization’s financial
- Recording fictitious revenues
- Timing differences fraud g. channel stuffing to record higher sales or meet targets
- Concealing liabilities and expenses
- Improper assets valuation
- Improper disclosures
Please note that these examples are not exhaustive and are not intended to be exhaustive.
Fraud
- any type of fraud or mismanagement;
- any activities that may constitute bribery or corruption in breach of any relevant laws or the Anti-Corruption and Bribery Policy;
- misuse or theft of Eterna’s assets and property;
- forgery (use of fake certificates, false declaration of age, );
- the deliberate concealment of any malpractice;
- non-disclosure of conflicts of interest; and
- override or violation of controls
4.2. Misconduct
Misconduct refers to any unethical or unlawful conduct, in violation of Eterna’s values, policies, procedures or regulations. This can be intentional or unintentional. The common forms of misconduct, also referred to as offences, misdemeanors or transgressions are stated below, these are not meant to be exhaustive:
- Theft;
- Unauthorized possession of company goods;
- Fraud;
- Bribery;
- Intimidation;
- Assault;
- Willful or negligent damage of company property;
- Deserting post or work station without permission;
- Unauthorized possession or consumption of liquor or drugs while on duty;
- Willful poor performance;
- Sabotage;
- sexual harassment, verbal, or physical abuse;
- failure to comply with any legal, professional obligation or regulatory requirements as required or mandated by Eterna;
- breach of Eterna’s Code of Business Conduct;
- breach of any of Eterna’s internal policies and procedures;
- conduct that is likely to damage Eterna’s reputation;
- abuse of office on the part of any member of staff or director;
- unauthorized disclosure of confidential information;
- misuse of Eterna’s information systems and computer databases; and
- miscarriage of justice.
4.3. Whistle-blowing
Whistle-blowing is the disclosure of any information that, in the reasonable belief of the person making the disclosure, relates to suspected or actual misconduct, fraud or danger at Eterna. These include but are not limited to:
4.4. A whistle-blower is a person who reports a genuine concern (examples of which are set out above) and who has reasonable grounds to believe that the disclosure is
4.5. This Policy encourages employees and other stakeholders with genuine concerns relating to suspected fraud, misconduct or danger affecting any of Eterna’s activities (a whistle-blowing concern) to report it under this