The MACC (Malaysian Anti-Corruption Commission) is still investigating the three individuals nabbed over suspected graft involving millions of dollars of an oil and gas exploration and production services firm, Petronas Carigali. The anti-corruption agency, however, declined to divulge any further information with regards to this case as investigations are still ongoing.
A 45-year-old project delivery manager, a 53-year-old director and a 28-year-old former technical assistant were nabbed based on allegations that they collaborated in submitting three falsified invoices between April and June 2015 amounting to 5.56 million dollars, for a drilling rig project.
A Malaysian local daily reported that, the suspects in the fraud probe involving Petronas Carigali spent millions on luxuries. The daily quoted sources who said the money was divided among the suspects who bought houses, two high-powered motorcycles and five cars. The report said anti-graft officers found proof of Petronas Carigali paying the amount to a company it had dealings with.
Last week, Petronas Carigali’s parent company Petronas confirmed the arrests of its employees for suspected graft. In a statement, the Malaysian state oil firm said the arrest follows an internal investigation on the employee conducted by Petronas, who later reported the case to MACC. “Petronas also assisted MACC investigators on the case prior to the arrest.” Petronas stated that it does not condone nor tolerate any form of misconduct among its employees and contractors and is extending its fullest cooperation to the MACC to further assist in their investigation if necessary. Since 2012, Petronas has been working closely with the MACC to curb and prevent corruption and misconduct, not just among employees within its group of companies, but also among its contractors and third-party service providers.
According to an insight provided by Deloitte, false invoices have been commonly used by employees to misappropriate funds from their employers for years. In such cases, employees defraud their employers by either creating an invoice for supposedly legitimate products or services that have never been delivered, who then submitted the invoice for payment. Employees may work alone or they may work in collusion with a third party. The best method an employer has to protect themselves against an employee submitting a false invoice for their own financial benefit is to ensure that adequate controls are in place. Adequate controls, such as requiring a second person to authorise all changes to a vendor’s bank account, requiring adequate supporting documentation for all invoices, or reviewing invoices and making further enquiries if "red flags" are present, will make it harder for an employee to submit false invoices or to alter the vendor’s bank account information, thus making it more difficult for the employee to defraud their employers.