AUDIT REPORT A government officer responsible for embezzling close to RM1 million from the Accountant-General’s Department of Malaysia (JANM) was let off without any criminal action, the Auditor-General's Report 2013 states.

 

The third series of the report tabled in Parliament today says the officer made off with RM995,031 in unclaimed money through falsification of documents, which was only discovered in March 2011.

 

"Legal action has yet to be taken against an officer who committed fraud and misappropriation between Aug 27, 2008, and Dec 21, 2010, involving RM995,031 in unclaimed money, despite police reports lodged on March 3, 2011, and March 10, 2011," it states.

 

A report was also lodged with the Malaysian Anti-Corruption Commission (MACC) on March 11, 2011.

 

JANM is responsible for collecting and overseeing money that has not been claimed in bank accounts for seven years, or funds that are meant to be disbursed to recipients but went unclaimed for more than a year.

 

The inaction is despite a June 22, 2012, letter from the police Commercial Crime Investigation Department, which said it had recommended to the Attorney-General's Chambers that the officer be charged under Section 477A of the Penal Code.

 

The section concerns the falsification of accounts and provides punishment of up to seven years' jail, a fine, or both upon conviction.

 

An investigation committee also found that the officer, a Grade N17 administrative clerk attached with JANM's Trust and Securities Management Division (BPAS), was suspected of being directly responsible for the missing funds.

 

'Sack' recommendation

The investigation committee recommended that the officer be sacked and a surcharge (fine) be imposed on the suspect for the lost funds.

 

However, the audit report found the officer was only transferred to the Accounting Development and Management Division, effective Jan 9, 2012.

 

According to the breakdown, the officer had falsified supporting documents for RM827,781.46 in unclaimed money, which were considered as "improper payment".

 

Another RM106,955.35 were disbursed to various names, but with to the same bank account number.

 

Also, RM60,294.50 could not be established as to whether the sum was made of genuine payments.

 

The entire amount was transferred electronically.

 

In March 2013, the audit report said the Finance Ministry had agreed to write off the RM995,031.41 lost but ordered that disciplinary action and a surcharge be imposed on the officer.

 

The audit report attributed the incident took place because BPAS had failed to abide by certain safeguards, such as requiring proper verification of documents.

 

"AS a result, the government lost almost RM2 million (the missing RM995,031.41 and another RM995,031.41 to write off the loss).

 

"The officer who committed the fraud and misappropriation should also be imposed a sucharge under Section 18(b) of the Financial Procedure Act 1957," it said.

 

According to this section, the government can impose a fine on the officer, up to a maximum sum matching the total lost funds.

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