Over RM400mil in PenjanaKerjaya payments frozen over false claims probe, says Socso

PUTRAJAYA: Payments totalling RM423mil for the PenjanaKerjaya programme have been suspended following a probe into allegations of false claims by certain employers and training providers, says the Social Security Organisation (Socso).

Its chief executive Datuk Seri Dr Mohammed Azman Aziz Mohammed said the move was made based on data analysis and continuous monitoring by the organisation's anti-fraud, ethics and integrity division.

“The division is also working closely with the finance division and the employment insurance system office to ensure each application is thoroughly reviewed before any payment is made to incentive recipients,” he said in a statement on Friday (July 15).

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Mohammed Azman said that to date, Socso had made payments totalling RM1.72bil to employers and workers under the PenjanaKerjaya programme, involving 45,379 employers to place 327,789 job seekers.

He said Socso places great importance on integrity, honesty and trust in distribution of financial aid as it involves public funds.

“Employers should be honest in submitting their applications for any aid programmes, including PenjanaKerjaya.

“Those found to have abused this fund or have submitted applications without fulfilling the conditions are to come forward and make repayments voluntarily or to contact Socso to resolve the matter before any action is taken,” he said.

Mohammed Azman said Socso will continue to work closely with the Malaysian Anti-Corruption Commission (MACC) in its investigation into allegations of false claims made under the PenjanaKerjaya programme.

He said the MACC and Socso had monitored the fund recipients since May last year and had found some employers had submitted false claims and had misappropriated the funds.

PenjanaKerjaya was introduced in 2020 under the National Economic Recovery Plan, offering financial incentives of between RM600 and RM1,000 to employers for each employee or apprentice employed for up to six months.

On Wednesday, the MACC and Socso announced that it had launched an operation - codenamed Ops Hire - to probe the allegations.

On Thursday, 37 individuals, including company owner, directors, managers and shareholders were remanded as the anti-graft agency mounts a probe over allegations of fake claims and misappropriation of funds under the PenjanaKerjaya programme, said to be amounting to RM100mil.