THE National Accounting Department (JANM) has reported a significant fraud case involving a civil servant at a government department amounting to RM10.4 million.
The case is part of a wider investigation into fraudulent transactions involving public funds between 2019 and 2024, which has led to the recovery or identification of losses totalling approximately RM18 million.
Accountant General Nor Yati Ahmad (pic) revealed that the fraud was carried out by an officer with access to the system.
"One case involved a civil servant and amounted to RM10.4 million. This incident took place in a government department in Malaysia. The enforcement authorities have taken follow-up action," she said at a press conference following the launch of the Accounting Fraud Working Group (KKFP) at Royale Chulan.
She explained that most accounting fraud schemes involved manipulating financial procedures and processes, including changes to accounting systems and financial management practices.
“In addition to taking aggressive actions based on third-party reports and other sources, our department has adopted a proactive approach by leveraging digital technology,” she added.
“This includes analyzing financial data to detect early indicators (red flags) and identifying anomalies in suspicious or unusual transactions. We are actively pursuing these efforts.”
Meanwhile, Tan Sri Azam Baki, the Chief Commissioner of the Malaysian Anti-Corruption Commission (MACC), noted that financial crime is becoming increasingly complex, with elements such as technology, proxy accounts, cross-border transactions, and 'layering' through multiple companies involved.
He stressed that accounting integrity must no longer be seen as merely a compliance issue but as a critical frontline effort in safeguarding national institutions and economic sovereignty. “We cannot view this issue in isolation.
The world is watching Malaysia, including through reports from the Financial Action Task Force (FATF) and Transparency International,” he said.
He also welcomed improvements to the Audit Act 1957 and proposals to strengthen the Accountants Act 1967, stating that these steps would not only strengthen jurisdiction but also enhance confidence that Malaysia is committed to financial accountability. - May 19, 2025
