KUALA LUMPUR: Stern legal action must be taken against companies found to have submitted false claims under the Social Security Organisation's (PERKESO) Daya Kerjaya 2.0 programme, following revelations that the alleged fraud could have cost the government an estimated RM45mil, says Tan Sri Lee Lam Thye.
The Alliance for a Safe Community chairman said the alleged submission of false claims by 1,638 companies, as disclosed by the Malaysian Anti-Corruption Commission (MACC), represented a serious abuse of public funds if proven.
He said the Daya Kerjaya 2.0 initiative was introduced to help employers retain and recruit workers, create employment opportunities and support the country's economic recovery, making any attempt to exploit the programme for personal gain unacceptable.
"If these allegations are proven, this would constitute a serious abuse of public funds and a betrayal of the trust placed in employers who are expected to act responsibly when benefiting from government assistance programmes," he said when contacted on Sunday (June 21).
Lee said the RM45mil allegedly lost could have been used to support thousands of job seekers, assist businesses genuinely in need, strengthen social protection measures and improve the welfare of Malaysian workers.
"Every ringgit lost through fraud ultimately deprives deserving beneficiaries of assistance intended for them," he added.
He said the case highlighted the need for the highest standards of integrity, accountability and transparency in the administration of public funds, noting that PERKESO programmes are financed through contributions and resources meant to benefit legitimate employers and workers.
Lee expressed full support for ongoing investigations by the MACC and other relevant authorities, urging that those found to have deliberately submitted false claims, falsified documents or engaged in fraudulent activities be prosecuted without fear or favour.
"There must be no compromise when it comes to safeguarding public funds," he said.
He also called on government agencies administering public assistance and incentive programmes to strengthen preventive measures to avoid similar abuses.
Among the measures proposed were tighter verification and screening procedures before claims are approved, greater data sharing between PERKESO and agencies such as the Employees Provident Fund (EPF), the Inland Revenue Board (LHDN), the Companies Commission of Malaysia (SSM) and the National Registration Department (JPN), as well as more frequent audits and compliance checks.
Lee also recommended the use of advanced data analytics and artificial intelligence to detect suspicious claims, stronger internal control and risk management systems, enhanced protection for whistleblowers, blacklisting companies convicted of fraud from future government incentive schemes, and recovering funds obtained through false claims.
He stressed that combating corruption and fraud required the collective commitment of employers, employees, government agencies, professional bodies and the public.
"As Malaysia continues its efforts to strengthen economic growth and social protection, it is imperative that public resources are managed prudently and protected from abuse," he said.
Lee urged the authorities to carry out a comprehensive investigation and ensure that all responsible parties are held accountable while reviewing existing systems to prevent similar incidents from recurring.
