KUALA LUMPUR – The Social Security Organisation (Socso) has received 388 reports of employers abusing the wage subsidy programme, the Dewan Rakyat was told today.
Human Resources Minister Datuk Seri M. Saravanan said in response, the government body has frozen all payments to these errant employers until investigations are completed.
“As for November 11, Socso has received up to 388 complaints from employees against their employers for abusing the wage subsidy payments involving funds of nearly RM20 million.
“At the same time, Socso has frozen all payments to these employers suspected of making false claims until investigations into the complaints have been completed. Socso has taken action against some of the employers who are not following the terms and conditions.
“From the complaints received – 156 false claims and abuse of wage subsidy funds have been identified by Socso,” said Saravanan in his reply to a question by Charles Santiago (PH-Klang).
“Of the 388 complaints, queries are being conducted on 232.
“Socso is also working together with the Malaysian Anti-Corruption Commission to investigate five cases, where one arrest has been made in Kedah on October 6.”
The organisation has blacklisted 5,537 employers for sacking their staff and not contributing to Socso.
Saravanan also said 221 employers who received the wage subsidies have closed their businesses. Another 2,713 SME-status companies shut down between March and October 30. – The Vibes, November 18, 2020
