Henderson Risk Solutions
Providing unparalleled Fraud Management services to commerce
Protection at its best
Fraud Investigation
Need a Fraud Investigator in Africa?
Boasting one of the highest success rates in the industry Henderson Solutions have performed challenging and complex fraud investigations since 1989 often taking on cases that have been deemed unwinnable and turning them around.
Henderson Solutions apply a high degree of analytical and strategic thinking coupled with vast field experience and unparalleled academic study and research.
Henderson Solutions leave no stone unturned using state of the art methodologies, technologies and practical experience.
Henderson Solutions maintain excellent networks in East Africa, West Africa and Southern Africa, from Cape Town on the southernmost tip of Africa to Lagos in the West and Nairobi in the East.
Whether your matter is not that material or involves millions of US$, Henderson Solutions provides the same level of personal service, commitment and attention to detail that has seen a return on investment on virtually every engagement that is unmatched by anyone in the industry, anywhere.
Example: In a recent case of tender rigging Henderson Solutions were sub-contracted to lead a forensic investigation into a suspect tender, which the South African Trade and Industry Minister confirmed before the Standing Committee on Public Accounts had confirmed fraud and corruption had taken place.
"A system that is supposed to deal with white collar crime is now the subject of an investigation, it is a huge problem" he said.
The Minister also questioned the handover of ZAR56 million in "record time" and said the forensic investigation had revealed a host of problems and that “the Governments money” had been well spent on the investigation.
Fraud Risk Assessments
Do you have fictitious companies on your supplier lists and if you did how would you know? Do you make payments to these bogus companies? Are you being over charged or are you paying more than once for the same product or service?
Do you have “ghost” employees or employees involved directly or indirectly supplying products and services to your company? How would you know even if you did?
At Henderson Solutions with over 16 years experience in data mining for fraud we will perform a relatively painless risk assessment of your entire procurement process irrespective of the size of your company or the volume of transactions involved using our state of the art methodologies, technologies and practical experience.
Whether you want to audit your current financial year or go back a number of years, this will not materially affect either the time taken to perform the audit or the cost.
Example: In a recent exercise for a major State institution, Henderson Solutions were contracted to provide a risk assessment of the procurement process.
As a proof of concept Henderson Solutions made use of software technology coupled with Forensic Audit investigation methodology and performed a “virtual” forensic audit relying exclusively on Red Flag rules and software technology.
The audit spanned four years of transactions and US$ 1.2 billion worth of transactions.
The outcome proved that the institution paid in excess of 3% of total revenue on duplicate payments and identified numerous instances of conflict of interest and less than arms length transactions.
The exercise was made more remarkable by the fact that the actual audit period took a mere two weeks and whether the audit involved one year or four the cost of the exercise was only affected by the yield and not the volume of data interrogated.
Due Diligence
Do you want to invest in a Company, a Scheme or a Franchise in Africa? Know your customer. Allow us to do your Customer Due Diligence.
The risk of fraud and corruption in doing business in South Africa has reached unacceptably high levels. Doing business in South Africa or with South Africa requires higher levels of due diligence and oversight to avoid potential losses both financial and as a consequence of reputational damage.
With a footprint in Botswana, Zambia, Kenya and Nigeria, Henderson Solutions have made diligence calls affecting over ZAR3billion in potential investments within the South African economy and abroad.
Knowing your future partners and the local business environment is key to financial security and long term sustainability. Vetting your potential partners and your deal is an important aspect of any business proposition.
Are your future partners who they say they are? Are the financials your future partners present a fair reflection of the actual position of their company or are there significant misstatements or material omissions?
Are there contingent liabilities?
Whatever the risk Henderson Solutions can help bring a greater degree of oversight and diligence giving you peace of mind and help your company reduce your exposure to potential losses as a consequence of unethical business practices.
Example: A multi-national Petroleum Company questioned the existence of a large one year old receivable reflecting in the age analysis of their debtor’s book.
Their customer, an Agent with a distribution agreement, agreed to pay provided the Petroleum Company could show the specific transaction giving rise to the receivable.
Our audit revealed the source transaction was dozens of smaller transactions consolidated as a single total which the Petroleum Company Agent paid but subsequently had reversed to credit another account held with the same Petroleum Company.
Satisfied that they could now be paid the Petroleum Company requested a due diligence of the business relationship between themselves and their Agent.
Henderson Solutions discovered that the Agent was engaged in numerous payments with subsequent reversals between separate accounts held with the Petroleum Company. This is similar to the practice of “kiting” between bank accounts.
This practice allowed the Agent Company to create a falsely sound and inflated credit track record resulting in an increased credit facility.
Closer scrutiny revealed unacceptably high risk involving at least US$ 1 million which the Petroleum Company attempted to trade out from.
Ultimately the Agent declared insolvency and the Petroleum Company suffered a debt write off in excess of US$ 20 million which they unsuccessfully attempted to recoup as a Tax write from the South African Revenue Service.
Litigation Support
Have you been defrauded and need to litigate? Allow us to project manage your matter.
Litigation in South Africa is usually a lengthy and very costly process. Henderson Solutions tend to defend their clients strategically and tactically with vigour from the outset to achieve speedy and equitable resolution to any dispute with a view to avoiding excessive unnecessary cost, litigation fatigue and unnecessary prolonged distraction which impacts negatively on strategic focus.
Henderson Solutions operate as an extension of your executive team, managing your case and dealing with the day to day distraction of litigation, whether Labour, Criminal or Civil.
Henderson Solutions take responsibility for managing the costs, the processes, the strategies and the outcomes with resolute determination and an expectation of results.
Example: Our client the Managing Director of MTN South Africa, was criminally charged with fraud and corruption stemming from his previous position as Post Master General at the South African Post Office.
These criminal charges were widely reported in the media resulting in significant reputational damage and a civil claim against the Managing Director of MTN South Africa for US$ 3.5 million.
Our task was threefold, establish our client’s innocence, defend the civil claim, and restore our client’s reputation.
Over a two year period Henderson Solutions waged a hard fought campaign to vindicate our client and restore his good name.
Henderson Solutions engineered and managed the defence strategy, the financial resources of the campaign, including disbursement to our client’s legal representatives and advertorials in the media associated with his defence.
Henderson Solutions began by assisting the co-accused in arbitration against the South African Post Office providing funding for their legal team and insight and analysis into the strengths and weaknesses of the fraud and corruption allegations against them.
The US$ 3.5 million civil claim for damages by the South African Post Office was defeated in arbitration and as a consequence Henderson Solutions by association saw to it that the criminal complaint against his client was defeated before it reached Criminal Court.
Finally our client found himself vindicated in the press and instituted a civil claim for damages, while his accuser was ousted along with three member of the Post Office Board and the Company Secretary.
Enterprise Wide Risk Management Solutions
“Bart provided valuable input and advice in the development of the Fraud Risk Profile for the company. Bart is also recognised as one of the leading Forensic Experts in South Africa.” Paul Stevens - Group Manager Competence Centre for Corporate Internal Assurance & Risk Management (Luxembourg) at ArcelorMittal
At Henderson Solutions we measure our success by what we achieve and actually believe that keeping clients happy comes from doing good work.
We tell it like it is and usually that means our clients benefit substantially as our results attest.
So add a new, fresh, innovative and dynamic dimension to your Fraud problem solving and call Bart Henderson the next time you need an expert.
