A Visit to MdI – Part VI

A Visit to MdI – Part II

Assalamualaikum and Hi bloggers. As what we have promised to you yesterday, we are going to share with you what are the common red flags of bankruptcy fraud in Malaysia.

According to Puan Norina (Director of Investigation and Enforcement Section, MdI), from 2012 to April 2014 only 29 investigation papers regarding bankruptcy fraud were open. The small number of cases investigated was due to the reason of being discharge of bankrupt by order of court under  Section 33 Bankruptcy Act 1967, insufficient of evidence collected and the deceased of bankrupt. Besides these reasons, less number of investigation paper opened for bankruptcy fraud was due to the policy of this department which emphasis more on educating the bankrupt as well as try to get them out of bankruptcy. 

However, of all the cases that they handled, they able to noticed the most common red flag of bankruptcy fraud was transfer of assets. The second most common was getting loan once a perpetrator had declared bankrupt. Yet, this latter red flags are able to be mitigated due to the implementation of Insolvency Notification System in 26 financial institutions and banks across Malaysia. The system which was on real time basis has enabled financial institutions and banks to pull data of bankrupts from MdI. This will prevent them from providing loan to a bankrupt.

In regards to recommendations in order to alleviate bankruptcy fraud, Puan Norina had mentioned that MdI has done a lot of awareness campaign and outreach program. This includes reaching out to the bankrupt’s, meet them personally and educate them pertaining to the roles and responsibility of bankrupt. Their approach towards the bankrupts are more towards assisting them to not being bound with debt continuously. This since the settlement of debt can be made in installment based on the bankrupt’s ability in repayment. 

So that was all that Puan Norina had shared with us on that day. At the end of the visit, we had presented a gift, as a form of our appreciation towards their cooperation and willingness in sharing knowledge and experience.

Thank you very much Puan Norina, Puan Norhafiza and Puan Norhayati. It was a fruitful session indeed!