VISIT TO MDI PART IV: INVESTIGATION PROCESS FOR BANKRUPTCY FRAUD CASE

INVESTIGATION PROCESS

In Malaysia, an investigation of a bankruptcy fraud is performed by Investigation and Enforcement Unit (UPP) of Malaysian Department of Insolvency (MdI). Director General of Insolvency will appoint a bankruptcy fraud investigator to conduct an investigation process. Based on Abidin (2015), the process of investigation is similar to investigation process done by other enforcement agencies such as the Royal Malaysian Police and the Royal Customs Department. It involves the following steps:

(1)  Receive a complaint – UPP will receive complaints on any fraudulent activities from various channels either by email, written documents (letter) or phone calls. Most of the complainants are public (individual or entity) and internal personnel of MdI such as Insolvency Officer.  

(2)  Open investigation file – UPP will appoint an investigation officer to handle the bankruptcy fraud case. The purpose of opening a file case is to commence the investigation process.

(3)  Request for information – Relevant information and evidence are obtained from public and private agencies such as SSM, JPJ, BNM, financial institutions and others. Further, cross examination of documents is needed to ascertain the facts of the case.

(4)  Identify witness – A bankruptcy fraud investigator will identify all possible witnesses that closely related to the case.

(5)  Interview and record statement – Making several inquiries to the suspect and possible witnesses for obtaining information in respect of the bankruptcy fraud case.  

(6)  Documenting evidence – Oral evidence and documents must be kept appropriately to maintain its credibility.

 The investigation process must be performed correctly thus making the evidence admissible in court. The investigation officers are crucial to uncover hidden facts, to obtain relevant evidence and to challenge the proof of prosecution’s case in the court. Therefore, they must be knowledgeable of the law and able to provide facts and evidence that can be linked to the application of the law. They are also trained to handle the bankruptcy fraud cases in the investigation process and in the courtroom.

 

Reference:

Zainol Abidin, Norina. Interview by Zamri, Siti Syarina. Bankruptcy Fraud in Malaysia, Putrajaya. 03 June 2015.