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New Straits Times
04-06-2025
- Business
- New Straits Times
Perkeso saves RM49 million from fraud investigations since 2020
KUALA LUMPUR: A total of nearly RM49 million in social security funds has been successfully saved since 2020 as a result of investigations by the Social Security Organisation (Perkeso) into fraud cases. Human Resources Minister Steven Sim Chee Keong said that from that period until April this year, 679 cases involving elements of fraud were actively investigated, including the Temporary Disablement Benefit Scheme (FHUS), Permanent Disablement Benefit Scheme (FHUK), the Invalidity Scheme and Health Screening Programme (HSP). "This success was achieved as a result of investigations leading to the suspension of 383 cases or 56.5 per cent of the total investigated, reflecting that strict governance and management can have a significant impact on system efficiency," he said. He said this while delivering the keynote address at the opening of the Seminar on Fraud, Evasion and Error in Social Security and Insurance Claims, organised by Perkeso in collaboration with the American Board of Independent Medical Examiners (ABIME), here today. Also present were Perkeso chairman Datuk Seri Subahan Kamal and group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed, as well as ABIME president and founder Prof Dr Mohammed Ranavaya. Commenting further, Sim said that benefit fraud, however, remains a challenge as losses amounting to RM2.1 million were recorded throughout 2024 due to unauthorised claims. "In the ongoing effort to curb fund leakage, Perkeso is also reviewing the Constant Attendance Allowance (ELS) to ensure the eligibility of recipients is continuously verified. "Throughout the period from 2020 to April this year, a total of 509 ELS cases were reviewed, with 117 cases or 22.9 per cent recommended for suspension, resulting in the long-term saving of social security funds amounting to over RM12.2 million," he said. According to him, the challenge of fraud, which is now global and driven by labour mobility and cross-border services, requires Malaysia to adopt a comprehensive prevention framework that includes legal reforms, strict enforcement, digital innovation and transparent communication. Meanwhile, Sim also announced Dr. Mohammed Azman as the recipient of The Lifetime Fellowship of the American College of Independent Medical Examiners (FACIME) and Master Certified Independent Medical Examiner to recognise his contributions in the field of disability medicine and occupational health. "This award is not only an honour to Datuk Sri Dr Mohammed Azman and Perkeso but also a recognition for the Human Resources Ministry and Malaysia, showing that local professionals are capable of achieving the highest recognition at the international level," he also said. FACIME is the highest qualification in the Field of Disability Medicine, awarded only to those who have reached the highest level of knowledge, skills, and abilities as a quality Independent Medical Examiner.
The Star
03-06-2025
- Business
- The Star
Socso probed 679 suspected fraud cases since 2020, says HR Minister
PETALING JAYA: The Social Security Organisation (Socso) investigated a total of 679 suspected fraud cases from 2020 until April 2025, says Steven Sim. The Human Resources Minister said these included those under the Temporary Disability Benefits, Permanent Disability Benefits, Disability Scheme and Health Screening Programme. He said Socso's efforts to curb fraud had saved the agency more than RM48.64mil in terms of long-term funds. 'This success was achieved as a result of investigations leading to the decision to suspend 383 cases or 56.5% of the total investigated, thus reflecting that strict governance and management can have a major impact on the efficiency of the system,' he said. Within the same period, he added a total of 509 Constant Attendance Allowance (ELS) were reviewed with 117 cases proposed for suspension, which led to another long-term saving of more than RM12.2mil. However, Sim pointed out that benefit fraud remains a challenge with losses reaching RM2.1mil recorded throughout last year stemming from invalid claims. On the benefits, Sim said there was no reason for Socso to withhold any entitlement and rights of workers, as they pay more than RM3.4bil annually to 464,593 contributors under various benefit payouts. He also said that the fate of 10 million workers and their families was on their shoulders, thus making Socso more alert to fraud and errors in the system. Sim said this during his speech at the opening of the Seminar on Fraud, Evasion and Error in Social Security and Insurance Claims, organised by Socso in collaboration with the American Board of Independent Medical Examiners (ABIME), on Tuesday (June 3). Also present were Socso chairman, Datuk Seri Subahan Kamal; Socso group chief executive officer, Datuk Seri Dr Mohammed Azman Aziz Mohammed and ABIME president and founder Prof Dr Mohammed Ranavaya. The seminar, which saw some 400 participants, brought together various stakeholders including the Medical Board panel, members of the Appeals Board, representatives of enforcement agencies and insurance companies. The aim of the event is seen as a significant step in addressing the challenges of fraudulent claims, system weaknesses and unethical practices that threaten the sustainability of the social protection system. Additionally, Sim stressed crime involving fraud is a violation of the law that erodes trust in public institutions established to safeguard the welfare of workers as funds are diverted from the needy. 'The challenge of fraud is now global, driven by the mobility of labour and cross-border services, hence Malaysia needs to adopt a comprehensive prevention framework that includes legal reforms, strict enforcement, digital innovation and transparent communication. 'The ministry is fully committed to leading the reform of the country's social system by involving the entire related ecosystem. 'Therefore, I hope that this seminar will be a catalyst for a more robust and resilient social security system,' he said. To the same tune, Subahan also said that Socso's fight against fraud was not new as it reflected a legacy of firm leadership and institutional resolve. 'Under the stewardship of Dr Mohammed Azman, our efforts began with tackling abuse in medical board processes and have since evolved to uncover and dismantle sophisticated fraud cartels. 'We are intensifying efforts across all fronts from strengthening claim verification processes to fast-tracking investigations through closer collaboration between Socso and enforcement agencies,' he said. Meanwhile, at the event, Sim announced that Dr Mohammed Azman received the Lifetime Fellowship of the American College of Independent Medical Examiners (FACIME) and Master Certified Independent Medical Examiner awards. The awards were presented by Prof Mohammed Ravanaya to Dr Mohammed Azman for his contributions in the field of disability medicine and occupational health. FACIME is the highest qualification in the field of disability medicine, which is given only to those who have achieved the highest level of knowledge, skills, and abilities as a quality Independent Medical Examiner.
