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    Forensic Accounting Assignment

    Uploaded by

    YanPing Ang
    Thank you for the questions. Unfortunately I do not have any additional context or details about laws regarding political involvement in Malaysia. My role is to summarize the key information provided in the given document.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Forensic Accounting Assignment

    Uploaded by

    YanPing Ang
    42 views38 pages
    Thank you for the questions. Unfortunately I do not have any additional context or details about laws regarding political involvement in Malaysia. My role is to summarize the key information provided in the given document.

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    © © All Rights Reserved

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    Thank you for the questions. Unfortunately I do not have any additional context or details about laws regarding political involvement in Malaysia. My role is to summarize the key information provided in the given document.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    42 views38 pages

    Forensic Accounting Assignment

    Uploaded by

    YanPing Ang
    Thank you for the questions. Unfortunately I do not have any additional context or details about laws regarding political involvement in Malaysia. My role is to summarize the key information provided in the given document.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 38

    CASE: Former

    MAS chairperson
    charges
    BACKGROUND OF MAS
    - Malaysia Airline Berhad (MAB)
    - Subsidiaries - MASKargo & MAS Wings
    - 1 May 1947 - Malayan Airways
    - 1 October 1972 - Malaysian Airline System
    - The flag carrier
    - Headquarters - Sultan Abdul Aziz Shah Airport in
    Subang, Selangor
    - Operates flights - 1. KL International Airport
    2. Kota Kinabalu
    BACKGROUND OF MAS

    - Air transportation services


    - Slogan - “Going Beyond Expectations”
    - 25 January 2007 - launched MH Campaign
    - Mission - “To provide air travel & transport service
    that rank among the best in terms of safety, comfort
    and punctuality”
    - Vision - “An airline uniquely renowned for its personal
    touch, warmth and efficiency”
    BACKGROUND OF THE CASE
    Tajuddin Ramli
    - Former Chief Executive Officer (CEO) of Malaysian
    Airline System Bhd (MAS)
    - Charged with various fraudulent dealings to MAS
    - Raised allegations of collusion between the police and
    the Attorney-General's Chambers
    - Involved in lawsuits with the GLC claiming non-
    payment of loans.
    BACKGROUND OF THE CASE

    - Inaction of Abdullah Ahmad Badawi (Former prime


    minister)
    - Gave information of the crime to Commercial Crime
    Investigation Department (CCID)
    - One of them is Idris Jala who is now a cabinet member
    - In October 2011, Nazri Aziz announced the outcomes
    - Section 131 of the CA 1965
    - Penalty - 7 years imprisonment or a fine of RM150,000
    the major
    fraud symptoms
    of fraud
    opportunities
    Fraud
    Symptoms
    Financial Scandal

    Poor Internal Control

    Unethical Practices
    FINAN CIA L
    SCA ND AL - Have take a loan from GLC to buy a 32% controlling
    stake in Malaysian Airlines.
    - The government bought back from MAS Holdings
    with the same price it was sold. (2001)
    - Cash reserves of RM600 million but the
    accumulated losses of RM9.4 billion.
    - Allow the construction of KLIA to keep the airline
    afloat.
    - He involved in legal proceedings with GLCs.
    - He failed to pay loans and ordered to pay more than
    RM500 million.
    - MAS and Tajuddin out of court settlement
    - Called "bailout" by critics
    POOR
    INTER NA L
    CON TR OL - To safeguard and assure the organization with
    compliance on the applicable laws
    - Tajudin should be questioned by management of MAS
    - A proper FS is required
    - To ensure all the transactions declared in the FS
    - Proper implementation of IC will reduce the risk of
    fraud opportunity
    UNETH IC AL
    PRAC TI CE S - Abuse resources to take loans from several
    GLCs to acquire the controlling stake
    - Borden on TRI suing Tajuddin
    - Two MAS ex-directors to recover RM 56 million
    ringgit in controversial payments
    - Reveal the truth of MAS scandal
    - Disclose the fact to provide the shareholder
    proper alert the organization
    THE MAJOR
    FRAUD
    PROFILES
    TAN SR I
    D IN RA MLI
    TAJU
    - Malaysian Entrepreneur
    - Former Executive Chairman of MAS from 1994 to
    2001
    - Owner - TRI Berhad (Technology Resource
    Industries)
    - Born April 1946 at Kampung Kuala Kangkong, Kedah
    - University of Malaya - Bachelor of Business
    Administration 1970.
    TAN SR I
    D IN RA MLI
    TAJU
    - Mismanagement on MAS incurring RM9.4 billion in
    debts.
    - Involve in various breaches of fiduciary and
    statutory duties and perform fraudulent act on MAS
    - Breaches Section 131 of Companies Acts 1965, which
    involves disclosure of interest
    WAN AIS HA H
    WAN H AM ID
    - Director of MAS until 2001.
    - A director of Naluri Bhd (Malaysia Helicopter
    Services Sdn Bhd)
    - Formally known as Tajudin's right-hand woman
    - Assist him in acquisition share of MAS by using
    share of Naluri Bhd
    - Involve in fraudulent act perform by former
    executive chairman of MAS, Tan Sri Tajudin Ramli
    RIZANA MOHD
    DAUD
    - Former company secretary of MAS
    - Married to Bistamam Ramli, former managing
    director of Edaran Bhd
    - She was formally known as Tan Sri Tajudin Ramli
    sister-in-law
    - Assist Tan Sri Tajudin Ramli in camouflaging all his
    track
    INVESTIGATION
    FOR FRAUD
    DETECTION OR
    PREVENTION
    1 .I N I T I A T E F R A U D I N V E S T I GA T I O N

    - People certainly sold shares at a higher price.


    - Government buy back shares at a lower price.
    - Huge costs involved
    E.g.
    - Government buys back MAS shares from Tajudin
    amounting RM8 per shares, amounting RM 1.79 million
    -Danaharta demands Tajuddin to pay RM1.61 billion.
    2.ACTIONS TO TA K E AFTER
    FRA UD SUS PIC IO N

    - Alert the authority


    - Obtain the information
    E.g:
    - Mas logged the police report about fraud of
    Tajuddin
    - Relocate two hub into single hub and caused a loss
    between RM10 million to RM16 million in a month.
    3 . F R A U D T H E O R Y A P P R O A C H

    - Make an assumptions to reach a hypothesis


    Which party that involved?
    What is the incident?
    When did it happen?
    - Modify hypothesis and gather evidence to test it
    FRAUD TRIANGLE
    PRESSURE - Financial problem

    FRAUD
    OPPORTUNITY RATIONALIZATION
    - High position, (Owner, CEO). - Make unnecessary decision.
    - Mismanagement - Decision that is harmful to the
    company.
    4 . P L A N N I N G A N I N V E S T I GA T I O N

    - Identifying the fraudsters


    - The number of transactions involved
    . GATHER EVIDENCE FOR COURT
    5
    PROCEEDINGS

    Physical evidence
    - The agreement details between Government and Naluri Bhd
    To verify what makes the sales looks cheaper.
    To see if any property is included for the exchange
    between those parties.
    Physical evidence
    - Bank statement from Danaharta
    To verify the transactions especially involving
    Tajudin Ramli.
    To see if any transaction that relates with the case
    that did not declare in public.
    INTERVIEW evidence
    - Do a interview with staff who works in 2001
    To verify the reason on why Tajudin change the cargo.
    To see if any plan that MAS wants to do that might be
    lead to another serious loss.
    TESTIMONIAL evidence
    - Recreate a crime scene:
    To see a proof that it did not commit to any law
    To make a list of any law on every scene that leads to
    fraud
    .ADVICE FOR FRAUD PREVENTION
    6

    - Reevaluate anti-corruption policies


    - Advanced analysis on fraud case
    - Improve ID authentication system
    7.COURT PROCEEDINGS

    a) Section 421 of Penal code


    - Dishonest or fraudulent removal or concealment
    of property to prevent distribution among creditors.

    - Tajudin Ramli, Danaharta


    b) Section 422 of Penal code
    - Dishonestly or fraudulently preventing from being
    made available for his creditors a debt or demand due to
    the offender.

    - Tajudin Ramli
    c) Section 491 of Penal code
    - Breach of contract to attend on and supply the
    wants of helpless persons.

    - Danaharta
    d) Section 131 of Companies Act 1965
    - Failing to disclose his interest during his tenure in
    the national carrier.

    - Tajudin Ramli
    THE THOUGHTS
    IN RECENT
    ACCOUNTING
    SCANDALS
    IMPAC TED
    PER SO N
    Tajuddin

    - There should not be any political involvement.


    - He involved in legal proceedings with GLCs.
    - He failed to pay loans and ordered to pay more than
    RM500 million.
    - MAS and Tajuddin "out of court" settlement.
    IMPAC TED
    PER SO N
    Danaharta

    - Terminated the contract with Tajuddin.


    - Involved with many court proceedings.
    - Intervention from the Government.
    Thank You!
    Let's move to the
    Q&A session !
    Question and Answers

    Question 1 - What is the definition of flag carrier?


    Answers: A flag carrier is a transportation company, such as an airline or shipping
    company, that being locally registered in a given sovereign state, enjoys preferential
    rights or privileges accorded by the government for international operations.
    Your name: Yan Ping

    Question 2 - Is there any law regarding any political involvement?


    Answers: Until today, there isnt any law regarding political involvement.
    Your name: Zabid
    Question and Answers

    Question 3 -
    Answers:
    Your name:

    Question 4 -
    Answers:
    Your name:

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