KUALA LUMPUR: The move to charge at least 100 individuals over fraudulent claims involving the Social Security Organisation's (PERKESO) Daya Kerjaya 2.0 incentive programme should serve as a strong warning against abusing public welfare funds, says Tan Sri Lee Lam Thye.
Describing the case as deeply troubling, the Alliance for a Safe Community chairman said the alleged fraud was especially serious because it involved an estimated RM45mil in losses from funds contributed by ordinary workers through their wages.
"The money belongs to workers who contribute in good faith to ensure they have protection and support when they need it. This fraud is not just an offence against the state; it is theft from every worker who pays into the system through honest labour," he said when contacted on Friday (Aug 7).
Lee said the funds were intended to help vulnerable groups, including persons with disabilities, older workers and others seeking employment or skills opportunities, but were allegedly siphoned off by syndicates and dishonest employers using stolen personal data to submit false claims.
"As a result, many people who were genuinely entitled to assistance received only small one-off payments or nothing at all.
"This is a gross betrayal of trust. Those who exploit the social security system are treating workers' hard-earned contributions as easy pickings, and such behaviour must never be excused or downplayed," he said.
Lee urged PERKESO to strengthen its safeguards against fraud, noting that investigations involving more than 1,600 companies pointed to significant weaknesses in the system.
He said stronger verification procedures, stricter audits and real-time checks on claims and beneficiaries were needed to prevent similar abuses.
"Appointing an integrity officer is a step in the right direction, but it is not enough. The system must be tightened so that fraud is more difficult to commit, easier to detect at an early stage and far riskier to attempt," he said.
Lee also called for tougher punishment for those convicted of defrauding the social security scheme, saying penalties must be severe enough to deter future offenders.
"If penalties are too lenient, fraudsters will continue exploiting the system. The courts must impose punishments that reflect the seriousness of the offence, including meaningful custodial sentences where appropriate.
"Stealing from workers' social security is not a minor offence. When people cheat the system, they cheat us all," he said.
