Socso fights attempts to defraud taxpayers

 

In an effort to help firms struggling during the Covid-19 pandemic, the government has provided funding to subsidise workers' wage under the Wage Subsidy Programme (WSP).

However, since the inception of the programme in April last year and its third iteration to date, there have been multiple attempts to defraud the Social Security Organisation (Socso), which manages the WSP.

While ensuring deserving companies get help, Socso has also had to pour resources into fighting fraudsters.

Socso chief executive officer Mohammed Azman Aziz Mohammed told Malaysiakini that at the end of last month, the organisation had initiated action against almost 300 firms in order to recover funds that errant firms have falsely claimed.

In one instance, a firm falsely claimed RM282,600 for 52 workers, and in another, RM195,600 was claimed for 38 workers between May and Oct last year.

The directors of both companies were arrested by the MACC, which Socso had been working with to fight fraudsters. Socso also receives assistance from the Legal Department of the Human Resources Ministry.

"Socso has a right to reclaim the money from WSP which the employers received if they were found to have submitted inaccurate information and made false applications.

"As of Jan 31, Socso has taken action against 287 employers by issuing a notice to claim the money from WSP which they received after complaints from their employees were justified," Azman told Malaysiakini in an email interview.

Socso CEO Mohammed Azman Aziz Mohammed

He explained that the fraudsters had employed various strategies to try and take advantage of the WSP, which is intended to help firms pay their employees' wages.

Azman said some firms submitted the names of employees who do not qualify for the WSP or continued to claim subsidy for staff members who have already been let go.

Some don't pay their staff despite getting subsidies, while others used shell companies to try to dupe Socso.

How to check and report suspected fraud

However, Azman said Socso has mechanisms in place to vet the companies and detect potential fraud.

"Every application which Socso received will be processed based on the company's registration and contribution record to Socso through our portal Assist. This is how we identify the shell companies," he said.

He said employees could also play a role by checking whether employers are diverting the subsidy, which should be used for their wages.

They can check whether their employer had applied and received the WSP at https://prihatin.perkeso.gov.my/psu/.

If employees suspect their employer had not paid their wages and instead pocketed the subsidy, they can lodge a complaint at eaduansip.perkeso.gov.my.

At the end of last month, Azman said Socso had received 1,176 complaints encompassing wage payment issues and suspicious claims.

He said swift action would be taken once Socso received the complaint.

"Payment to employers will be suspended until the investigations from complainants are solved," Azman added.

Targeted subsidy

Beginning this year, the WSP 3.0 programme shifted to a more targeted approach with a focus on the tourism and retail sectors. Other sectors can qualify for a one-off payment.

The subsidy application is open until June 30 and if approved, they will receive wage assistance for six months.

Among the conditions to apply for WSP 3.0 is employers must show that their revenue is down by 30 percent. Socso would pay RM600 per employee, but the limit is 500 employees.

The previous WSP 1.0 began from April to September last year and continued with WSP 2.0 under the Prihatin package from October to December.

By December last year, Socso had paid out at least RM12.21 billion to more than 300,000 employers.

As for WSP 3.0, it had received 57,186 applications from employers involving 580,560 employees, with more than RM122.5 million distributed.

Azman reminded employers who received the subsidy to channel it to their eligible workers.

"Action will be taken against irresponsible employers.

"Socso will not compromise with any employer who abuses the government's aid as the objective of this initiative is to ease the burden of both employers and employees," he said. - Mkini