An Exploratory Study on the Occurrence of Asset Misappropriation in the Malaysian Security Apparatus

ABSTRACT

Asset misappropriation (AM) cases involve the theft or unauthorized use of an organisations assets for personal gain. It is important to note that AM in the public sector can have serious consequences, such as losing public funds and public trust and undermining essential public services. As a result, this type of fraud is regarded as a serious threat to the countrys financial stability and sovereignty. The study explores fraudsters motives concerning asset misappropriation in the Malaysian security apparatus (SA). An exploratory study was conducted considering the sensitive job nature of the SA. The study applied semi-structured interview techniques to achieve the objectives. This method is often used to get rich and relevant data from respondents. The study applied Fraud Diamond Theory to examine factors causing asset misappropriation. The study concluded that common and control mechanisms have specific weaknesses, especially concerning asset management. Further, existing SOPs require upgradation and should be aligned with contemporary best practices. The study found that all elements of the Diamond Fraud Theory significantly affect the behaviour of perpetrators. Therefore, the study suggested an exemplary role of seniors and robust whistle-blowing culture to yield better results against perpetrators.

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