In Penang, three orthopaedic specialists and 30 other individuals have been remanded for three days in connection with a RM2.1 million fraudulent Social Security Organisation (Socso) disability claims scheme.
The suspects, who appeared before the magistrates' court in George Town at 9 a.m. dressed in the bright orange lock-up attire provided by the Malaysian Anti-Corruption Commission (MACC), include 19 claimants, eight agents, and three intermediaries. The orthopaedic specialists involved are from two government hospitals and a private hospital in Seberang Jaya, aged 36, 50, and 57 years old.
The group was detained during an MACC operation yesterday and held after their statements were recorded at the MACC office in Penang. The scheme allegedly involved making false claims related to spinal and anterior cruciate ligament (ACL) injuries. Claimants received 50% of the funds, while the remaining amount was split among the doctors, agents, and runners. Each doctor reportedly received around RM10,000 per claim, although this amount varied.
The suspects, whose ages range from 26 to 60, have been active since 2017. Further arrests are anticipated as investigations continue. The case is being investigated under Section 18 of the MACC Act 2009, which addresses falsified claims.
In July, Senator Dr. RA Lingeshwaran had urged the Ministry of Human Resources to investigate claims that several doctors involved in Socso disability claims had been suspended due to their ties with the syndicate. Lingeshwaran, a former director of Sungai Bakap Hospital, revealed that there were 683 false disbursements from 2018 to 2022, totaling approximately RM43 million. Sixteen of these cases were linked to a specific doctor, who was terminated following the scandal’s exposure.