Malaysia says US$2.4 million fraud involving civil servants uncovered at government office in London
This is among several public fund misappropriation cases detected between 2019 and 2024 which have resulted in losses of around RM18 million (US$ 4.2 million) according to a department under the Finance Ministry.
Malaysia launched the Accounting Fraud Working Group, led by the Malaysian Anti-Corruption Commission (MACC), on May 19, 2025. (Photo: Instagram/@sprmmalaysia)
KUALA LUMPUR: A RM10.4 million (US$2.4 million) financial fraud case allegedly involving Malaysian civil servants was uncovered at a federal office in London on Monday (May 19), according to local media.
This is among a series of cases, amounting to around RM18 million worth of public funds lost over the last five years, according to Malaysia’s Finance Ministry.
“It occurred at a federal department (and) enforcement authorities have taken action,” said Accountant-General Nor Yati Ahmad from the Finance Ministry as quoted by local news outlet New Straits Times (NST).
The fraud involved manipulation of financial systems and unauthorised changes to accounting procedures, she added, as quoted by local media platform Free Malaysia Today.
She was speaking at the launch of accounting fraud task force, the Accounting Fraud Working Group, in Kuala Lumpur on Monday.
In her speech, Yati also said that public sector agencies must adopt a collaborative approach to navigate an increasingly challenging and complex technological landscape and this can be achieved through the sharing of best practices among public and private sector agencies to enhance fraud prevention policies, regulations and methodologies.
She also said that most accounting fraud cases involved manipulation of financial procedures, including tampering with accounting and financial management systems.
At the same event, Malaysia’s Auditor General Wan Suraya Wan Mohd Razi said that all federal and state agencies, statutory bodies, as well as 1,875 government-linked companies flagged in her annual report, must return the misappropriated funds.
“If there are any irregularities such as uncollected or unreceived revenue, follow-up action will be taken,” she was quoted as saying by The Edge.
Besides taking firm action based on third-party reports and other sources, the Accountant General Department is also leveraging current digital technologies to analyse financial data and identify unusual or suspicious transactions as part of “standard work processes” at the National Accounting Department nationwide, said Yati, as quoted by NST.
ACCOUNTING FRAUD TASK FORCE LAUNCHED TO STRENGTHEN FUND RECOVERY EFFORTS
The Accounting Fraud Task Force launched on Monday, according to Malay Mail, will serve as a cross-agency platform for strategic collaboration to comprehensively address accounting fraud.
Malaysia’s Anti-Corruption Commission (MACC), the Accountant General’s Department and the Inland Revenue Board are among the agencies forming the task force, local media reported.
At the event, MACC chief Azam Baki described the launch of the Accounting Fraud Task Force on Monday as a strategic move to strengthen the country’s efforts in recovering funds and assets linked to corruption and misappropriation, especially those hidden overseas.
He said that the MACC, which is the lead agency of the task force, will ensure that detection, analysis and enforcement actions are carried out in a more efficient, coordinated and impactful manner.
“Dealing with cases involving the loss of national funds through complex syndicates that involve multiple parties is not an easy task. However, (through the task force), we can plug further leakages and recover stolen assets,” MACC’s Azam was quoted as saying by Malay Mail.
“On the 1Malaysia Development Berhad (1MDB) case, it became clear that there is still much to be done, it’s a challenging process that requires specialised expertise,” he added, describing the scandal as one of the most complex cases as many of the assets involved are located overseas.
The task force’s expertise will thus be “vital in tracing assets via international collaboration,” Azam said.
He also added that positive outcomes can be expected within the next six months from the task force, which will focus on asset recovery.
Detailing on the economic impact of corruption in Malaysia, the anti-graft chief said that Malaysia had lost an estimated RM277 billion to corruption between 2018 and 2023, which is around RM55 billion annually based on GDP estimates.
“(These figures) clearly show how corruption and related offences, such as document forgery, manipulation of financial statements and misappropriation of company funds, have undermined government policies, processes and service delivery as well as operations in the private sector,” Azam was quoted as saying by Malay Mail.
“This erodes public and investor confidence and hampers national progress.”
