Latest news with #RM277
The Sun
20-05-2025
- Business
- The Sun
Boost to anti-corruption efforts
KUALA LUMPUR: The newly established Accounting Fraud Working Group will bolster anti-corruption efforts in Malaysia, providing expert support for investigations and asset recovery in complex financial fraud cases, including the 1Malaysia Development Bhd (1MDB) scandal. Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki described the 1MDB case as 'very messy', involving substantial assets that demand specialised forensic expertise. 'Many of the stolen assets are abroad. Without help from certain experts, it would take us even longer to recover the money. 'There is a lot of tracing, analyses and cooperation with foreign authorities involved.' Speaking at the group's launch at the Royale Chulan Hotel in Kuala Lumpur yesterday, he said a multidisciplinary approach is vital to move the investigation forward efficiently. 'The 1MDB case exemplifies how financial statement fraud can be deeply intricate, involving account manipulation, fictitious transactions and collusion with auditors.' Led by MACC, the Accounting Fraud Working Group comprises the National Audit Department, Accountant-General's Department, Companies Commission of Malaysia, Inland Revenue Board, Malaysian Institute of Accountants and Universiti Teknologi Mara. Azam said modern financial crimes are growing in sophistication, requiring equally advanced responses. 'Fraudulent activities are often concealed behind falsified business documents, proxy companies or disguised as business expenses, such as consultancy fees, entertainment costs or development charges. These layered transactions make tracing the real money trail difficult. 'The typology of corruption today is more complex than ever. Alarmingly, many fraud cases are embedded within accounting and auditing processes. 'When these systems lack transparency or are managed by individuals with weak integrity, they fail as protective gatekeepers and instead enable wrongdoing.' Azam said Malaysia lost an estimated RM277 billion to corruption between 2018 and 2023, an average of RM55 billion a year, describing the amount as 'alarming'. 'A 2023 study by think tank Emir Research, which also looked at data from various public reports, estimated that total losses reached RM4.5 trillion from 1997 to 2022.' He underscored the need for a coordinated national response. 'Government agencies can no longer operate in silos. This working group provides a coordinated framework to align efforts in addressing these complex financial crimes. 'It will also function as an early warning system to detect leakage in public procurement and fund distribution while promoting reforms for transparent and accountable financial reporting.' He described the group as a potential 'game changer' in strengthening Malaysia's financial governance, characterising financial statement fraud as 'one of the gravest forms of corruption'. 'This type of fraud creates false impressions of financial health to conceal embezzlement or inflate performance, making it highly calculated and damaging. 'While enforcement is crucial, prevention through stronger internal controls and early detection systems is equally important. Even preventing RM10 billion in annual leakage would be a significant achievement.' He added that the group's diverse expertise is particularly valuable for cross-border asset recovery, which involves tracing funds internationally and coordinating with foreign authorities, which are capabilities that individual agencies may lack. Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi described accounting fraud as a serious threat to institutional credibility and the efficiency of public spending. She said the formation of the working group reflects a strong commitment to reform, addressing long-standing issues highlighted in the auditor-general's reports, including procurement violations and governance failures. She stressed the importance of structured oversight, advanced training and the adoption of technologies such as artificial intelligence and data analytics to detect and deter fraud. The working group will function as a policy think tank, proposing reforms to enhance financial governance and accountability. At the launch, representatives from participating agencies signed a joint declaration pledging to cooperate on investigations, share technical expertise and conduct joint training initiatives to uphold integrity.
The Sun
19-05-2025
- Business
- The Sun
KKFP set up to recover corruption-linked assets hidden abroad
KUALA LUMPUR: The formation of the Accounting Fraud Task Force (KKFP) is a strategic move to strengthen Malaysia's efforts in recovering funds and assets linked to corruption and misappropriation, particularly those hidden overseas. Malaysian Anti-Corruption Commission (MACC) Chief Commissioner Tan Sri Azam Baki said the MACC, as the lead agency and secretariat for KKFP, will ensure that detection, analysis, and enforcement actions are carried out in a more efficient, coordinated and high-impact manner. 'Dealing with cases involving the loss of national funds through complex syndicates that involve multiple parties is not an easy task. However, through KKFP, we can plug further leakages and recover stolen assets. 'For example, during this morning's briefing on the 1Malaysia Development Berhad (1MDB) case, it became clear that there is still much to be done. It's a challenging process that requires specialised expertise,' he told a press conference after launching KKFP with representatives from six other key agencies. In addition to the MACC, KKFP comprises the National Audit Department, Accountant General's Department, Inland Revenue Board (LHDN), Companies Commission of Malaysia (SSM), Universiti Teknologi MARA (UiTM) and the Malaysian Institute of Accountants (MIA). The task force serves as a cross-agency platform for strategic collaboration to comprehensively address accounting fraud. Commenting on the 1MDB scandal, Azam described it as one of the most complex cases, especially since many of the assets involved are located overseas. 'We're moving in that direction through KKFP's involvement in the 1MDB case. But this is no easy feat, as many of the assets are abroad — and not all countries maintain strong cooperation with us. That's where KKFP's expertise will be vital in tracing assets via international collaboration,' he said. Azam added that the task force will also focus on asset recovery, with positive outcomes expected within the next six months. On the economic impact of corruption, he revealed that Malaysia lost an estimated RM277 billion to corruption between 2018 and 2023, roughly RM55 billion annually, based on GDP estimates. He also cited a 2023 study by EMIR Research, which estimated that Malaysia lost up to RM4.5 trillion between 1997 and 2022 due to various forms of leakages and misappropriation. 'These figures aren't just statistics. They clearly show how corruption and related offences, such as document forgery, manipulation of financial statements, and misappropriation of company funds, have undermined government policies, processes and service delivery, as well as operations in the private sector. 'In the end, this erodes public and investor confidence and hampers national progress,' he said.
