Theft of freight
During a routine external audit, a South American ship agent discovered that part of the freights collected from shippers on behalf of a principal had not been deposited in the agent's bank account. Subsequent investigations revealed that, over a period of seven months, freight cheques totalling US$180,000 had been deposited in the personal account of one of the ship agent's employees. In addition another employee, who had a good knowledge of the agent's systems, controls and computer system, had colluded in bypassing these controls to conceal the discrepancies. The theft was reported to the police, and criminal proceedings were commenced against the two men. Unfortunately they fled from justice before the criminal trial and have still not been traced. The agent recovered the stolen freights, less his own commission, from the Club.