Taking action: Azman said more suspects are expected to be arrested in the near future. The fraudsters made claims backed by medical reports, he added.
KUALA LUMPUR: Intelligence information from the Social Security Organisation’s (Perkeso) Anti-Fraud, Ethics and Integrity (AFEI) department has enabled the Malaysian Anti-Corruption Commission (MACC) to uncover a sophisticated fraud scheme.
The MACC’s investigation, now in its second month, focuses on a network of fraudsters who have allegedly siphoned millions from Perkeso’s funds.
This collaborative effort highlights the critical role of internal oversight in detecting and combating financial crimes within Malaysia’s social security system.
The fraud, orchestrated by a cartel, was helping people make fraudulent claims specifically related to Perkeso’s permanent disability benefit.
The cartel is believed to have been operating for years, siphoning off more than RM2mil.
Perkeso group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said from July 2, MACC and Perkeso have been working together in a crackdown known as Ops Tunjang.
The operation was aimed specifically at dismantling the fraudulent claims cartel, he said.
The operations has seen more than 30 people, including three doctors, being arrested and remanded. More are expected to be arrested soon.
Azman said some of the false claims were even backed by medical reports, verified by doctors, and stated that the claimant had suffered fractures to their hand or leg. These reports even included medical certificates that granted the claimant up to 90 days of medical leave.
“However, when we did the internal investigation and visited the hospital, the actual X-ray showed no fracture,” he said.
Azman said Perkeso would continue with its efforts to uncover and prevent further false claims.
“There may be more cases of claims that will be identified, and follow-up actions will be taken as we cooperate with MACC,” he told a press conference at Menara Perkeso yesterday.
He noted that Perkeso was currently reviewing and looking into implementing a new and improved claims process, including enhancing the verification of claims received.
“The claims process is complex, involving many parties, including professionals like doctors who prepare medical reports and Perkeso officers,” he said.
He also highlighted the need for additional due diligence in cases where no third party is involved, such as accidents that involve only the victim.
In such instances, extra precautions are needed since there is no third person to verify the incident.
He said that one of the areas identified for improvement is the need for increased vigilance concerning the panel of doctors who are responsible for verifying medical reports submitted for claims.
Human Resources Minister Steven Sim, who was also at the press conference, commended Perkeso’s proactive measures in uncovering the false claims.
“Perkeso has taken very proactive steps to uncover this issue, as it was not exposed by a third party but rather its internal investigation,” he said.
Sim said that Perkeso will not compromise when it comes to upholding good governance and adherence to the law.
“We will continue to improve our services to ensure that our contributors receive the best protection,” he said.
