Admittedly, this is not a large case. But it shows that the application of proper audit techniques can be applied to uncovering frauds, both big and small.
The depositors and shareholders of Raboss Sacco, a savings and credit cooperative in Kenya, will never forget John Ojok, who was also known as “the triple-three,” because he had three wives (in Kenya, polygamous marriage is legal under customary law). The triple-three was known as a hard-working and intelligent pharmaceutical marketer who cared deeply about his work. His employer, Raboss Pharmaceutical, considered him an asset, and his public relations and marketing skills earned the firm a sizeable number of customers—both the distributors and retailers of drugs.
It was therefore not surprising that, when the triple-three was made the chairman of the board of Raboss Sacco, he was initially described as a “successful chairman.” Ojok's power was bolstered by the fact that he selectively issued loans on incredibly favorable terms to specific Sacco shareholders. These loan beneficiaries in turn guaranteed Ojok their votes in the shareholders' annual general meetings. Other board members often felt that there was no point in disagreeing with Ojok because his ideas always seemed to be voted through.
During his free time away from the pharmaceutical company and his board duties, Ojok discreetly ran a transportation business called Eastland Commuter Connection with the treasurer and ...