The measures, implemented to increase public faith in government agencies, included the adoption of an open tender system to ensure transparency in government contracts; public accessibility to information on government tenders through the My Procurement portal; and the adoption of the Whistleblower Protection Act, he said.
“Other measures include the introduction of an integrity pact where bidders are to refrain from offering, demanding or accepting bribes to influence procurement decisions; enforcing swift and stiffer punishments; and accelerating corruption trials,” he said yesterday in his keynote address at the Corporate Fraud Conference organised by the Institute of Internal Auditors Malaysia.
Auditors, Ambrin said, must possess professional scepticism including a questioning mind and critical assessment of audit evidence.
They must regularly evaluate the soundness of financial and internal control systems and rely on their technical experience and professional judgment to recognise high-risk fraud indicators, he said.
Effective anti-fraud measures, he said, should be in place to mitigate instances of fraud and misconduct.
“Auditors have a role to play in promoting a culture that rejects waste and values honesty, responsibility and the rational utilisation of economic wealth.
“Where internal controls are insufficient and, or ineffective, fraud can happen anywhere, whether in the public or private sector,” he added.
Citing an example of suspected public sector fraud, Ambrin said the Port Klang Free Zone scandal had allegedly “disclosed a frightening web of power abuse and mismanagement.”
“Weak project management and bad governance in terms of disregard of proper government procedures, no open tenders, excessive costs, cash flow problems, lack of master planning and minimal supervision have severely undermined the viability of the project,” he added.
IIA president Hashim Mohammed said vigilant handling of fraud cases within an organisation sends a clear message to the public, stakeholders and regulators of the management’s attitude towards fraud risk.
