By LOURDES CHARLES and MARC LOURDES newsdesk@thestar.com.my
KUALA LUMPUR: One in four local companies fell prey to commercial crimes over the past two years and, just last year alone, the amount lost to such crimes was more than RM833mil. And employees are the main culprits.
Commercial Crime Investigations Department director Comm Datuk Ramli Yusuff said the bulk of the money was lost through cheating (RM400mil) and criminal breach of trust (RM280mil). “A survey conducted by Price Waterhouse Coopers Global Economic Survey revealed that employees committed 70% of the crimes,” he added. “Employees are often lured wittingly or unwittingly into assisting or colluding with outsiders to commit crimes against their own companies as business grows and becomes more complex. “Malfeasances by management and non-employees to a large extent can be attributed to poor internal control,” he said in an interview.
Last year’s losses from commercial crime was an increase from 2005 with losses standing at RM799mil. - with cheating cases totalling RM419mil and criminal breach of trust RM358mil. “Records also showed that more than 1,000 people were arrested over the 6,000 cases reported.”
Comm Ramli said two special teams have been set up within the commercial crimes department to handle the problem with each team under the command of -anassistant commissioner.
One team would be in charge of operations while the other would handle research, he said.
He also said that the crimes happened largely due to poor corporate governance by company management.
Comm Ramli said police were also concerned over the failure of companies to report incidences of commercial crimes.
“If companies only think of their reputation and don’t report commercial crimes, it will not help the police to curb the menace.
“By lodging reports, we believe companies actually stand to gain in terms of professional integrity,” he added.
Comm Ramli said the police on their part have been enhancing cooperation with the private sector, especially through various tasks forces.
“Business organisations are encouraged to improve their corporate governance, which include good internal control, comprehensive security measures, including pre-employment screening, and establishing a corporate code of conduct,” he said.–>(SOURCE:The Star, Saturday, 24 February 2007)