KUALA LUMPUR, May 19 — The formation of the Accounting Fraud Task Force (KKFP) is a strategic move to strengthen Malaysia’s efforts in recovering funds and assets linked to corruption and misappropriation, particularly those hidden overseas.
Malaysian Anti-Corruption Commission (MACC) Chief Commissioner Tan Sri Azam Baki said the MACC, as the lead agency and secretariat for KKFP, will ensure that detection, analysis, and enforcement actions are carried out more efficiently, coordinated, and with high impact.
“Dealing with cases involving the loss of national funds through complex syndicates involving multiple parties is not easy. However, through KKFP, we can plug further leakages and recover stolen assets.
“For example, during this morning’s briefing on the 1Malaysia Development Berhad (1MDB) case, it became clear that there is still much to be done. It is a challenging process that requires specialised expertise,” he said during a press conference after launching KKFP with representatives from six other key agencies today.
In addition to the MACC, KKFP comprises the National Audit Department, the Accountant-General’s Department, the Inland Revenue Board (LHDN), the Companies Commission of Malaysia (SSM), Universiti Teknologi MARA (UiTM), and the Malaysian Institute of Accountants (MIA).
The task force serves as a cross-agency platform for strategic collaboration to address accounting fraud comprehensively.
Commenting on the 1MDB scandal, Azam described it as one of the most complex cases, primarily since many of the assets involved are located overseas.
“We are moving in that direction through KKFP’s involvement in the 1MDB case. But this is no easy feat, as many of the assets are abroad, and not all countries maintain strong cooperation with us.
"That is where KKFP’s expertise will be vital in tracing assets via international collaboration,” he said.
Azam added that the task force will also focus on asset recovery, with positive outcomes expected within the next six months.
On the economic impact of corruption, he revealed that Malaysia lost an estimated RM277 billion to corruption between 2018 and 2023, roughly RM55 billion annually, based on the gross domestic product estimates.
Azam also cited a 2023 study by EMIR Research, which estimated that Malaysia lost up to RM4.5 trillion between 1997 and 2022 due to various leakages and misappropriation.
“These figures are not just statistics. They 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, and operations in the private sector.
“In the end, this erodes public and investor confidence and hampers national progress,” he said.
— Bernama
