Financial investigation is entrusted to experts based on recommendations from previous successful investigations, not to someone solely based on a formal diploma.
writes Ivica Grčar
[email protected]
A reader contacted me, wondering what kind of financial forensics program Dragan Primorac is establishing at the University of Split. After this program, students will receive diplomas as ‘Masters of Financial Forensics’. If it is so easy to establish this program, the reader asks why there are so few financial forensic experts in the world, even though one working hour of a financial forensic expert is more expensive than, for example, the working hour of a minister.
The reader does not understand that in this attractive program, as announced, 45 students are expected to enroll with the support of the Ministry, and another 45 students will pay 10,000 kuna per academic year. And that is not so much for a diploma as ‘Master of Financial Forensics’. The reader herself admits that there are not enough financial forensic experts in the world, which is why students will rush to enroll in this program.
It Can Be Done Without Forensics Only formally certified financial investigators – who are not truly qualified – are of no use to anyone. The job of financial investigation is not entrusted based on formal diplomas, but on actual recommendations regarding successful previous investigations. This has been shown by practice in Croatia. For example, Judge Ika Šarić ordered an expert evaluation in the court proceedings against Eduard Nodilo, a dealer from the Rijeka Bank accused of losing around one hundred million US dollars in the international money market while he was authorized to trade money for the Rijeka Bank. However, it soon became clear that the expert to whom Judge Šarić entrusted the job was unable to evaluate what the accused Nodilo was doing. The judge revoked the expert and appointed a company for the evaluation instead. But shortly thereafter, the company submitted a quote that was so high that Judge Šarić had to completely abandon the evaluation. Judge Šarić realized that there are actually no financial forensic experts in Croatia even for that job from qualified companies. And for hiring international forensic experts, the total approved funds for one year of operation of the entire County Court would not be sufficient. Judge Šarić continued to adjudicate solely based on information from the central bank and undisputedly established facts that Nodilo did not timely inform his associates about the loss of 100 million USD, and that was without an evaluation.
