Public sector fraud: the Malaysian perspective

Abstract

Purpose

This paper aims to explore and compare the perception of public sector employees on fraud and associated fraud behaviours.

Design/methodology/approach

The population of this study comprised 44 managers from the Malaysian Federal government departments. The analysis was based on an open-response questionnaire using data-driven thematic analysis. This was based on the context and latent content of the respondents. The items in the questionnaire examined the perceived definition, actions and experience of corruption in their departments.

Findings

The findings revealed that respondents acknowledged that bribery as one of the central element of fraud. They recognise fraudulent behaviour and practice in their organisation together with sharing these experiences in the study. Common results indicate that leaders play a major role in shaping the organisation as they present themselves as a model to the mployees. From the human resource perspective, having multiple side businesses while being in employed in the government sector would heavily impact performance and accountability.

Research limitations/implications

Fraud is observed as a practice that needs to be addressed to improve government efficiency. The uniqueness was that the respondents acknowledged the existence of fraud and its implications through the activities of bribery, abuse of power and giving out favours. There is a need for organisations to focus on transparency and value to mitigate fraud.

Practical implications

This paper contributes towards the continuous effort in expanding fraud literature and human behaviour. The data obtained was distinctive in terms of the perspective of a developing economy and such fraud information and responses are different as compared to developed economies.

Originality/value

The empirical study of the public sector organisations enables important contribution towards effective public governance and administration. The results have important implications for preparing functional strategic management and controls for the public sector.

Citation

Zahari, A.I., Said, J. and Muhamad, N. (2022), "Public sector fraud: the Malaysian perspective", Journal of Financial Crime, Vol. 29 No. 1, pp. 309-324. https://doi.org/10.1108/JFC-01-2021-0013