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Socso suffers RM2.1mil losses due to false claims cartel | Scoop
A total of 33 individuals, including three doctors, have been remanded starting today to assist in the investigation into allegations of falsified disability claims with the Social Security Organisation (Socso) in Penang. - Bernama pic, September 4, 2024
News

Socso suffers RM2.1mil losses due to false claims cartel

33 individuals remanded in Penang today over alleged involvement in the group

Main Author Image
R. Dineskumar
Updated
6:02 PM MYT

 

GEORGE TOWN – The Social Security Organisation (Socso) has incurred losses totalling RM2.1 million due to 24 claims suspected of being fabricated by a cartel in Penang. This cartel was dismantled by the Malaysian Anti-Corruption Commission (MACC) yesterday.

Earlier today, 33 individuals were remanded in connection with the cartel, which is accused of falsifying Socso disability claims. Among those detained were three senior doctors from two government hospitals in the northern state.

In a statement to Scoop, Socso’s Group Chief Executive Officer Datuk Seri Dr Mohammed Azman Aziz expressed deep concern over the losses and assured that the government agency is taking all necessary measures to address the issue and prevent further abuse of social protection funds.

Azman revealed that Socso had conducted a thorough internal investigation to identify any irregularities and handed over the findings to MACC on July 2. This investigation was completed before a Dewan Negara Senator publicly revealed the existence of the cartel.

“Our commitment to upholding the integrity of social protection schemes is paramount,” he said.

On July 22, Senator Dr RA Lingeshwaran raised concerns in the Dewan Negara, urging the Human Resources Ministry to address the alleged suspension of doctors involved in processing Socso disability claims, which were reportedly connected to the same cartel. Lingeshwaran mentioned that the medical officers were suspended following Socso’s discovery of irregularities at a Penang hospital.

Reviewing internal processes

Azman also stated that Socso is fully cooperating with the authorities to ensure that those responsible for making fraudulent claims are held accountable. He emphasised the importance of protecting the safety net provided by Socso to ensure that genuine claimants continue to receive the support they rightfully deserve.

“Additionally, we are reviewing our internal processes to further strengthen the safeguards in place and prevent such incidents in the future. This includes implementing enhanced verification systems and exploring tighter collaboration with relevant authorities,” he added.

Azman also shared that Socso is exploring collaboration with stakeholders to ensure a more robust verification process and tighter control measures moving forward, which would reinforce trust and security within the system for all beneficiaries.

Doctors’ actions undermine trust in public healthcare, social protection systems

Azman condemned the involvement of doctors in the cartel, stating that their actions have not only tarnished the reputation of the medical profession but also represent a serious misuse of social protection funds meant to support contributors and their families during times of need.

He expressed concern that their actions have undermined public trust in both the healthcare system and social protection mechanisms, potentially jeopardising the stability of these vital support structures.

“As medical practitioners, they are bound by the Hippocratic Oath to remain just and professional in carrying out their duties.

“This ethical code requires them to maintain the highest standards of integrity, which makes these fraudulent activities particularly alarming.”

Following the arrest of the three doctors, the Health Ministry said that it would not tolerate any abuse of power by public servants under its watch, vowing to take stern action against those who compromise public health services. The ministry also assured that it will cooperate fully to facilitate the agency’s investigations. – September 4, 2024

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