Determinants of Occupational Fraud in Government Procurement: Malaysia’s Public Sector Perspective

Abstract

The purpose of this study is to examine the determinants of occupational fraud related to government procurement. The examinations include assessments on whether ethical values, knowledge of fraud behaviour and abuse of power have a significant relationship with government procurement. This study employed quantitative method approach based on primary data, by using simple random sampling technique via survey questionnaire distributed to public servants that involved in government procurement activities. The result revealed significant relationship between ethical values and occupational fraud while knowledge of fraud behaviour and abuse of power resulted insignificant relationship with occupational fraud in government procurement. This study has limitation subject to responses received from respondents, who may or might not be honestly expressing their opinion, as well as the fact that it is restricted to the questionnaire provided. It also focused solely on perception from public servant that involve in the government procurement. The finding of this study can be used to further stimulate the research of occupational fraud within public sector with the aim of promoting cooperation between public and private sector while improving the effectiveness of government services.