Article Search By: Pn. Nurul Ezani Abdul Malek (Penolong Akauntan)

Source: https://www.sprm.gov.my/index.php?page_id=103&contentid=3056&cat=BKH&language=my

 

 

One of the biggest frauds in the government and private sector is corruption. This crime is very dangerous because it paves the way for other crimes to happen.

For example, law enforcement who accept bribes and release drug dealers, causing drug to be sold on the black market. The pistols brought in with 'lubricating oil' as low as RM50 given to officers at the border, may result in armed robberies that cost lives.

In the construction sector, corruption causes a building to be built without following the specified specifications. Finally, resulting in the building not being safe to use.

Why does corruption happen? A low salary is definitely not the main factor for a person to be involved in corruption. The proof can be seen through media reports every day. Corruption criminals come from various social groups. On average, they have certain positions and positions in the government and private sectors.

 

Fraud model - triangle and diamond

Factors that encourage a person to engage in white-collar crime such as fraud and corruption are explained through the Fraud Triangle Model and the Fraud Diamond Model.

The Fraud Triangle model was developed in 1953 by an American criminologist named Dr. Donald R. Cressey. According to this model, an ordinary human being will be motivated to commit fraud because of opportunity, pressure and rationalization (intellect).

In 2004, the Fraud Triangle Model was developed by Wolfe and Hermanson by adding another factor which is the ability of the individual involved. This new model is known as the Fraud Diamond Model.

 

4 causes of corruption

The Fraud Triangle Model and the Fraud Diamond Model can be used to explain 'why' and 'how' someone is involved in corruption. In summary, the factors that drive a person to get caught up in corruption are as follows.

The first factor is the ABILITY to commit corruption. In other words, corruption will not happen if the perpetrator does not have the ability to do it.

Ability exists when a person has a position and power in the organization; have the knowledge to manipulate work processes; having confidence that his actions will not be detected or caught; and the ability to overcome anxiety caused by wrongdoing.

 

The second factor is the OPPORTUNITY in front of the eyes. A person tends to commit corruption when he sees a 'way' to do it, with a low risk of being caught.

Opportunities exist because of weak internal controls, bureaucratic red tape, no monitoring, no system of segregation of duties, and extensive use of discretion.

For example, application procedures that have many layers (bureaucracy or 'red tape') before being approved, cause things to be slow. The situation opens up opportunities for customers who want to be quick to offer bribes. Similarly, if the procedure is too complex, some officers offer 'help' to facilitate the process for a certain fee.

The third factor is STRESS, either financial pressure or work pressure. Examples of financial stress are debt problems and bill arrears that cannot be resolved. Financial problems can occur as a result of the actions of an individual who practices a luxurious lifestyle, is involved in drug addiction, alcohol and gambling. It may also be due to the increase in the cost of living, especially for those who have many wives and children.

Work pressure can happen when a person thinks that the work done is not commensurate with the salary. Or, not commensurate with the assessment given by superior officers.

In a business world full of competition, bribery is used to ensure that a project or tender is successfully obtained. Corruption is not done for personal gain, but the insistence to continue the survival of a company.

The fourth factor is RATIONALIZATION of their actions. People who commit corruption do not see themselves as criminals. On the other hand, it feels like they are ordinary honest people, but caught in the wrong situation. They justify wrongdoing with seemingly logical (rational) reasons.

A common example of rationalization is, “It's not my fault. I have no choice. God will surely forgive me", "Everyone does this", "People want to give, just take it. I didn't even ask for it", "The boss also took bribes. No, I can't", "It's not even his money.

He will claim from his company", "If I don't take it, someone else will", "He is profiting, I am also profiting. What's the problem?", and "I did it out of desperation. I have to help my poor family".

 

Anti-corruption measures

Understanding these driving factors allows one to implement preventive measures on their own. Avoiding getting caught up in crime is a personal commitment, supported by good governance in the organization.

Friends who advise each other are very helpful, especially when in a dilemma. At the same time, one must manage work and financial pressure well.

Employers and organizations play a role in strengthening work systems and procedures so that opportunities for corruption can be closed.

Employees must be reminded not to use bribery to smooth things over. Employers also need to constantly educate their employees to reject any thoughts that rationalize their criminal actions.

Finally, the last line of defense is one's personal integrity. It must be remembered, no one can change us, except ourselves.

Date of Input: 29/11/2023 | Updated: 30/11/2023 | muhammad.isam