Take action against employers for fraudulent wage subsidy claims

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The Penang Division of the Malaysian Trades Union Congress is shocked at the fraudulent wage subsidy claims submitted by employers as revealed by the human resources minister.

Even more disgusting is the exposure that such unscrupulous employers had resorted to falsification of documentation with the Companies Commission Of Malaysia (SSM) in an attempt to deceive the authorities and benefit from the wage subsidy scheme, which was made available to provide a financial buffer during the challenges brought forth by the coronavirus pandemic.

According to the minister, some 1663 employers falsified applications by using fake SSM certificates. M Saravanan also revealed that more than RM500,000 in wage subsidies was pocketed by such employers.

Penang MTUC welcomes the minister’s pledge to investigate the matter. The minister should consider bringing criminal charges against such employers. Such employers may well have violated the fiduciary duty of trust imposed on them when they accessed the government’s wage subsidy scheme. Their attempts to deceive the government may well fall within the definition of a criminal breach of trust.

Penang MTUC believes the Ministry Of Human Resources should report the abuse to the police to enable them to commence investigation to ascertain if a crime has been committed and, if so established, to initiate appropriate action against them.

K Veeriah is secretary of the Penang division of the Malaysian Trades Union Congress

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