A Visit to Malaysia Department of Insolvency (MdI): Part I

A Visit to Malaysia Department of Insolvency (MdI)

                 A Visit to MdI - Briefing Session by Puan Norina binti Zainol Abidin, Director of Investigation and Enforcement Division (centre), 

Puan Norhayati binti Abu, Investigation Officer (second from right) and 

Puan Noorhafiza binti Osman, Senior Insolvency Office (first from right)  

                                                  

On Wednesday 3 June 2015, the three of us had visited Malaysia Department of Insolvency situated at Level 2-3, Legal Affairs Building, Precint 3, Putrajaya. This visit had been planned a week before by our team member Nor Hafizah binti Marzuki. The visit was aimed to obtain information about bankruptcy fraud in Malaysia as well as to comprehend how MdI’s performed their investigation task while confronting bankruptcy fraud cases.

As we arrived we were greeted by Puan Norhayati binti Abu (Investigation Officer), Puan Noorhafiza binti Osman (Senior Insolvency Office) and Puan Norina binti Zainol Abidin (Director Investigation and Enforcement Division). Puan Norhayati, Puan Noorhafiza along with Puan Norina had brought us to a meeting room at Investigation and Enforcement Division where we had spent almost 2 hours for briefing.  

During the session, we had been briefed by Puan Norina, the Director of Investigation and Enforcement Division about the main responsibility of her division. According to Puan Norina, the main function of Investigation and Enforcement Division is to investigate the affairs of the bankrupts upon attaining an adjudication order or receiving order from court. The investigation was done towards the assets and liabilities of the bankrupts as well as the bankrupt’s behavior.  This is for the purpose of proving the debt of the bankrupt. Once the liabilities and assets of the bankrupt had been identified, the assets will be vested upon the Director General of Insolvency. The assets attained will be sold to the public where the proceeds will be channeled to the bankrupt’s creditors. 

Besides performing investigation upon receiving adjudication order or receiving order, the Investigation and Enforcement Division also liable to conduct investigation for cases from external or internal parties. The cases lingers on a bankrupt whereby they fail to file their assets and liabilities once they had been adjudicated bankrupt and also fail to disclose their actual assets. Once the investigation had accomplished, the investigation paper/report will be submit to the Attorney’s General Chamber for their further action.

A part from bankruptcy fraud and investigation, Puan Norina also managed to share with us her experience, statistics on bankruptcy fraud in Malaysia, investigation process, and opinion regarding bankruptcy fraud’s red flags as well as recommendations on mitigating bankruptcy fraud. However, we will spare this topic for tomorrow’s post. So do join us tomorrow.