Effectiveness of monitoring mechanisms and mitigation of fraud incidents in the public sector

Abstract

Fraud in the public sector continues to be the major issue for the governments worldwide. Thus, this study examines the extent of monitoring mechanisms within public systems curbing fraud incidents. The authors' survey concerned three dimensions of monitoring mechanisms: good governance, internal control procedures and fraud prevention programs. This survey has been conducted among various Malaysian government officers. The results show that, generally, misappropriation of assets is ranked as the most frequent fraudulent case in government agencies. Based on regression analysis, internal procedures or policies were significant in reducing fraud incidents. Additionally, both good governance and fraud prevention programs were proven to have a significant relationship with the occurrences of fraud within government agencies. In terms of the practical aspect, the study provides important information for public servants on the effectiveness and usefulness of good governance, internal control procedures, and fraud prevention program in the public sector. This paper provides an interesting contribution to the understanding of fraud incidents inside government agencies.

The Influence of Fraud Risk Management on Fraud Occurrence in Kenyan listed Companies

“…and rationalization (justification of immoral deed) that consequently leads to fraud. The research findings concurred with the research outcomes of Kamaliah et al (2018) who conducted a study in the Malaysian public sector that preventive controls significantly curbs fraud occurrence. The research findings also concurred with the observations made by ACFE (2018) in an international context that preventive controls momentously reduces the level of fraud occurrence.…”

“…Waigumo (2012) argued that the preventive measures could be ineffective in reducing fraud occurrences in commercial banks in Kenya since the anti-fraud techniques are old to curb bank fraud that changes as a consequence of technological advancement. Complementary to that Kamaliah et al (2018) based on a study carried out in the Malaysian public sector noted that organizational integrity plan and internal control systems momentously reduced fraud incidents. Proper implementation of an internal control system curbs the risk of conspiracy among employees thus hindering fraudulent actions from taking place (Peltier-Rivest & Lanoue, 2012).…”

“…Besides that, number of studies (Lee, 2017;ACFE, 2018;King'ori, Kiragu, & Kamau, 2019, Kamaliah et al, 2018Waigumo, 2012;Kamau, 2015;Holtfreter, 2008) actually went a step further to establish how the preventive controls influenced the reduction of fraud occurrence. King'ori, Kiragu and Kamau, (2019) that fraud preventive measures consisting of referencing of documents of value, staff training on hiring, segregation of duties, verification of signatures, job rotation, intergrity check on hiring and control over dormant accounts considerably lowers down the level of fraud occurrence cases experiencef in large and medium-sized commercial banks in Kenya.…”

Effectiveness of Quality of Chief Integrity Officer, Ethical Climate on the Level of Ethics and Integrity in the Malaysian Federal

“…Table 3 shows the percentages of fraud cases based on the different number of government agencies. Research conducted by Kamaliah, Marjuni, Mohamed, Mohd-Sanusi & Anugerah (2018), shows that the higher percentages are fraud cases namely, misappropriate of assets, followed by theft, procurement fraud, bribes, payroll fraud and, financial statement fraud in the federal government agencies. Meanwhile, a percentage of fraud cases misappropriation of assets in local government agencies is the lowest percentage compared to the federal government agencies.…”

Data mining and bifurcation analysis of the risk of money laundering with the involvement of financial institutions

“…The illegal incomes that flow through a country's financial system significantly affect its economic security and can cause not only the loss of financial stability of banks, insurers, etc., but also lead to an increase in crime and terrorist attacks in the state. The study suggests that the tools for the state's economic security should be based on a detailed study of the processes that provide it or may violate it (Kamaliah et al, 2018;Katan et al, 2019). Thus, the anti-money laundering system should be able to quickly adapt and change since the results of the scientific and methodological approach to assessing the risks of using Ukrainian financial institutions for money laundering indicate its low efficiency.…”