KUALA LUMPUR, Jan 26 ― "Financial crocodiles” who make false claims to obtain government funds cause those who should actually benefit to be left out, and this prevents the economy from growing as expected, says Malaysian Anti-Corruption Commission (MACC) deputy chief commissioner (operations) Datuk Seri Ahmad Khusairi Yahaya.

He said the value of integrity seemed to be fading in a handful of companies that were responsible for helping the government through the distribution of funds or assistance to the needy.

The government, he said, had provided funds through initiatives and institutions such as the National Economic Recovery Plan (PENJANA), the Malaysian Indian Transformation Unit (MITRA), and the Malaysia Automotive, Robotics and IoT Institute (MARii) with the aim of helping the people affected by economic pressure throughout the Covid-19 pandemic.

"However, financial crocodiles have taken the opportunity to openly make false claims to obtain funds provided by the government to enrich themselves.

"As a result, genuine employees are laid off, graduates remain unemployed, traders who should receive benefits and assistance, are simply marginalised and forced to close their businesses,” he said in a statement today.

Ahmad Khusairi said the leakage in funds occurred as a result of several factors including weaknesses in reviewing the authenticity of the information provided, which caused several companies owned by the same individual to make claims, and the ‘emergency’ used as an excuse for not performing due diligence on applicants.

According to him, the government also has no clear mechanism to monitor programmes or activities carried out to ensure that they are actually implemented with the right number of participants and there are no clear rules or laws to take action against applicants such as having them blacklisted, filing civil suits and reclaiming unused funds,” he said.

He said a concerted effort by the MACC and the agencies and ministries involved had led to the arrest of 133 individuals comprising company owners and directors, while more than 100 companies have been investigated for suspected misappropriation worth over RM194 million in special operations conducted last year.

Thirty-four company owners or directors have been charged in court with submitting false claims, he added.

This year, he said, the MACC would focus on leakages and misappropriation of funds in the human resources, welfare, automotive, education and higher education, animal husbandry, agriculture and plantation sectors. ― Bernama