Employee fraud in Malaysia : a case study

• Main Author: Teh, Yik Koon
• Published: London School of Economics and Political Science (University of London) 1994
• Subjects: 301; Banks
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.246658

This thesis is a detailed case study about employee fraud in a bank in Malaysia. As this bank is set up by the Government in 1965, the fraud has political implications. This thesis discusses the internal structure of the organization as well as the political and social climate conducive to fraud and corruption in Malaysia. Two other major financial fraud cases in Malaysia will be discussed as comparative case studies. Fraud and corruption trends in other countries will also be discussed to illustrate that the Malaysian case is not a unique one. In chapter one, a theoretical framework suitable for the studies of crime in developing countries will be formulated. In Malaysia, the historical development of the country is important. Chapter two introduces the concepts and definitions of crimes at the workplace, in particular fraud. Chapter three tries to trace the detailed movements of the funds that were defrauded in the Bumiputra Malaysian Finance Limited (BMF) case. In doing so, they give a good idea of how frauds can occur and how they can be prevented. Chapter four is an analysis of the BMF case. The chapter is divided into two sections. The first section is the micro-analysis which deals with the structure of the organisation that is problematic. The second section is the macro-analysis which deals with the wider political and social structure that is problematic. Chapter five is on the comparative case studies which tries to establish the trend of how public organisations can be defrauded in Malaysia. A comparison with other countries will also show that the Malaysian case is not a unique one. Chapter six deals with the overall commercial crime scenario in Malaysia. Chapter seven tries to give some suggestions on combating and preventing fraud. The thesis is concluded with chapter eight.