FRAUD is rife in the workplace, with tough times driving middle management employees to plunder company funds to fix their own financial woes.

A report from tax and accountancy speacilist Price Water House Coopers says more than 40 per cent of New Zealand organisations were vicitms of fraud in the last year, with the number of crimes committed by senior and middle management jumping 20 per cent.  New Zealand was ranked eighth-highest for rates of fraud amoung 54 countries surveyed.  Russia topped the list while Japan was last.

"I don't think New Zealand is as crime or fraud-free as people think," Price Water House Coopers forensic services director Alex Tan said. "Most prevalent here is what we call "asset misappropriation", or stealing money.  That's what people in New Zealand like - they like stealing the money."

This year nine bus drivers were sacked after allegedly swindling Go Wellington of $20,000 worth of bus fares between May and June - the scam was reportedly worth $500,000 over three years.

And workers in South Auckland involved in a $2 million Coca-Cola scam allegedly swiped thousands of bottles of sof drink before on-selling them to dairies at knock down prices.

On average, Kiwi organisations that responded to PwC's survey were swindled out of $500,000 in the past 12 months - one business reported losses in exces sof $7m.  There were 85 New Zealand respondents.

Insitute of Professional Investigators chairman Ron McQuilter says his firm is a third busier with corporate theft and fraud than a year ago.  And that does not include insurance-related fraud, which is also p.  "It used to be the storeman and the truck driver, but today we're seeing managers involved for all sorts of reasons.  "We've sacked chief financial officers of companies, whereas before it was the chief financial officers that used to call us."

Private investigators say the recession has prompted many businesses to rein in perks and bonuses, and cut overtime.  The cutbacks have seen managers take to dishonesty in a bid to balance thier household books.  An ex-CIB senior sergeant in the New Zealand Police, Mr Campbell says managers are integral to organised corporate crime because without them many scams would not get off the ground.  "It might start with turning a blind eye, but once (managers) get hooked in, the pressure builds on them for a bit more here and a bit more there, then the money becomes good and the rot really spreads."

"When times are good and the profits are rolling it's all hunky dory.  But once the belt-tightening starts you'd be amazed just how many are willing to put their hand in the till"

(Source: Kris Hall, The Dominion Post, Firday, November 20, 2009, Page C1)