Fuel_Subsidy

TABLE OF CONTENT CHAPTER ONE 1.0 BACKGROUND OF COMPANY 1.1 INTRODUCTION CHAPTER TWO 2.0 BACKGROUND OF THE PROBLEM 2.1 STATEMENT OF PROBLEM 2.2 PURPOSE / OBJECTIVE CHAPTER THREE 3. SIGNIFICANCE OF THE STUDY 3.1 SCOPE OF THE STUDY CHAPTER FOUR 4. METHODOLOGY FOR DATA COLLECTION 1. DATA COLLECTION PROCEDURE 2. DATA ANALYSIS CHAPTER FIVE 5. DATA ANALYSIS AND RESULTS CHAPTER SIX 6. CONCLUSION 1. LIMITATION OF RESEARCH 2. RECOMMENDATION FOR FUTURE RESEARCH REFERENCES APPENDIXES CHAPTER ONE 1. BACKGROUND OF COMPANY Pos Malaysia Berhad (PMB) is Malaysia’s premier physical communications provider. With its vision to be “Your Trusted Partner”, Pos Malaysia Berhad vast experience as well as its vast network spanning across the country forms a solid backbone to support Pos Malaysia Berhad’s expansion and developing strategy. Pos Malaysia Berhad ha widespread network of 688 post offices all over the country in addition to our network of mini post offices, mobile post offices, postal agents and stamp agents, making it one of the most extensive retail network in Malaysia. Pos Malaysia Berhad’s Strategic Business Units, aimed to provide quality, reliable, timely and innovative solutions to our customers, and encompasses the following: - Pos Mail : Mail and Postal Services - Pos Laju : Courier and express mail services - Pos Niaga : Retail business services - Pos Logistik : Logistics services Throughout the years, Pos Malaysia Berhad has grown from strength to strength and is progressing from being a mail and postal services provider towards becoming a dynamic physical communications provider. Moving forward, Pos Malaysia Berhad will continue to transform and innovate itself in order to maintain its relevance and competitive edge as well as continue to connect Malaysians with the rest of the world. 1.1 INTRODUCTION On Thursday 12 June 2008, Pos Malaysia Berhad (PMB) has announced that in line with the decision made by the Government of Malaysia on fuel subsidy, PMB has been appointed as the agent for disbursement of this subsidy to eligible vehicle owners. Eligible Malaysians can start to claim the subsidy at all 686 post offices countrywide effective on 1 July 2008. As announced by the Government of Malaysia, vehicles with valid Road Tax from 1 April 2008 until 31 March 2009 are entitled for the annual subsidy. When the Prime Minister’s Office released the full announcement on the new petrol and diesel prices for Malaysia as well as the new subsidy structure last week, it was mentioned that the RM625 subsidy would be issued for cars and RM150 for bikes with road tax renewable between the 1st of April 2008 until the 31st of March 2009, with payments to be issued via Money Orders from July onwards. At that point we were unsure on what this meant as it seemed to indicate that the RM625 and RM150 subsidy was a one-off thing only which no second time. Second Finance Minister Tan Sri Nor Mohamed Yakcop has cleared up this uncertainty on the subsidy, clarifying that it is indeed a one-time payment only, and not a yearly thing as some had hoped. Anyone who is planning to cheat the system and try to profit from a yearly subsidy scheme by stocking up on old cars that are nearing scrap metal condition can forget about it now. It is still not clear at the moment whether cars and bikes with engine displacements above 2000cc and above 250cc respectively would have their road tax cut by RM200 and RM50 permanently, or just for one year as with the fuel subsidy. Owners of cars up to 2000cc as well as pick up trucks and jeeps up to 2500cc will receive RM625 for each vehicle. Motorcycles up to 250cc will receive RM150 each. Vehicle owners who come personally to make the claim at post offices shall be paid in cash. Those who appoint third parties to claim on their behalf shall receive the Money Order that will be mailed directly to the owner’s address that is furnished to Pos Malaysia Berhad when making the claim. The RM625 and RM150 fuel rebate is one way of sharing the good fortune to the people. However, it is not enough. How to get the rebate' The moment you renew your road tax at the Road Transport Department (RTD) or Post Offices, you will receive a Money Order equivalent to that amount. This said rebate is only for this next one year and the following year's road tax is subject to the government approval again. The problems facing by the Pos Malaysia Berhad because of the fuel rebate are difficult to identify at first; because of the press statement release by the Government shows no discrepancy. However, the statement itself has been wrongly interpreted by the Malaysian public. Although the Government has release full statement on the procedure and terms to claim the rebate however it still unsatisfactory and makes the public raise inquiries to the Government and Pos Malaysia Berhad. The question is how to determine a potential answer for each inquires raise by the public. The Government and Pos Malaysia Berhad must provide concrete answer for the public to understand more regarding the fuel rebate. CHAPTER TWO 2.0 BACKGROUND OF THE PROBLEM A fraud is an intentional deception made for personal gain or to damage another individual. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and is also a civil law violation. Many hoaxes are fraudulent, although those not made for personal gain are not technically frauds. Defrauding people of money is presumably the most common type of fraud, but there have also been many fraudulent discoveries in art, archaeology, and science. Common law fraud has nine elements; (1) representation of an existing fact; (2) its materiality; (3) it falsity; (4) the speaker’s knowledge of its falsity; (5) the speaker’s intent that is shall be acted upon by the plaintiff; (6) plaintiff’s ignorance of its falsity; (7) plaintiff’s reliance on the truth of the representation; (8) plaintiff’s right to rely upon it; and (9) consequent damages suffered by plaintiff. 2.1 STATEMENT OF PROBLEM In the process of claiming cash from fuel rebates by Malaysian citizens, it was reported that some fuel rebate scheme have not gone to the rightful vehicles owners. An undisclosed sum of public funds about RM5 billion for the fuel rebates are believed to have been siphoned off by fraudsters. Fraudsters involved in the fuel rebate scam are being identified by the police with the help of Pos Malaysia Berhad, the agency authorized to carry out the rebate pay-outs. Pos Malaysia Berhad is working closely with the police to get to the bottom of the matter and had even lodged police reports when allegations of wrongful claim were detected. Newspapers investigations showed that the significant pay-out to unauthorized people have raised responsibility issues on the part of Pos Malaysia Bhd as the only agency entrusted to make payments. The rebate issue was actually the responsibility of the government to subsidize and also as a replacement of money to lighten the society’s burden. In the economic instability, the government was trying hard to balance the standard of living in Malaysia by controlling the fuel prices. But with the rebates scam and fraud issues, the public have to be aware in submitting their claims. According to the entrusted agent, Pos Malaysia Bhd, there are only three steps to follow to entitle for a cash payment. Eligible owners will be paid RM625 for car and RM150 for motorcycle. Firstly, a person has to bring along the necessary documents that is their identity card and their valid driving license. Secondly, vehicle owner has to fill in claim form (Pos Akaun 1) and show it to the counter personnel. Lastly, once satisfied owners will be paid cash for RM625 or RM150. The requirements to claim for cash seem so simple and there is no way somebody can take away the vehicles owner’s money. However, till now it was reported that 24 cases (Jan 2009) have been lodged to the police for investigation. This shows that the rebate system is not totally secure and clients are still at risk when making their claims. Police are still investigating and at early stage revealed that inside help could be one of the possibilities in the fraud. However, it is not confirmed till the court imposes any decision or penalty. There were also complaints where rebate claims are from an authorized person. For example when two sisters both contract nurses working in Saudi Arabia discovered that their claims of RM 625 had been cashed by an unknown person at Palong, Negeri Sembilan post office. They lodged a police report at the Seremban police station however the police informed them to raise the problem to the media and sue Pos Malaysia Berhad. It have been informed by the Commercial Crime Investigations Department director Datuk Koh Hong Sun, police has received 14 reports nationwide on unauthorized claims. Newspaper investigation showed there are three Pos Malaysia Berhad clerks were charged in the Sessions Court with criminal breach of trust involving RM6,875 in cash rebates for 11 (eleven) road tax renewals. Each offence carries a jail term of up to 20 (twenty) years, whipping and a fine upon conviction. Another problem arise from this issue is the complaints made by Permanent Residence (PR) and Natural Gas Vehicle (NGV) owners. According to law, they are not entitled and they voiced out their disappointment through the medias. The PR feels that they should be given the reimbursement because they are also contributing to the country and they have been staying here for more than five years. For Natural Gas Vehicle owners, they feel that even though they used cheap source of energy, but to fit the Natural Gas Vehicle was expensive. Therefore, they too should also be given the cash rebate for at least to lesser their burden. However, the Natural Gas Vehicle owners are entitled to a discount of 25% on their Road Tax. Newspaper investigation showed that a Malaysia national has been twice denied the fuel subsidy pay-out given by the government for vehicle owners just because he was born in India. A senior citizen Ong Kok Leong was refused the RM625 rebate for the two vehicles registered in his name when he tried to claim the pay-out at a post office in Ipoh. The claimer was denied his claim due to he was born abroad in Bombay, India and on his MyKad were 71. it was informed by the State road transport department director Mohammed Yasir Mastakim, will be sending road transport department officers to the post office to clear the matter. For the public or vehicle owners, the long waiting period will a problem because it seem very unfair to those who can get their claims after 10 months. This happens when the government will make payments to those who renew their road tax by1st April when the earlier renewal have to wait for almost a year before they can claim. From the government point of view, rebates issue is a way to appreciate the public especially when the country is facing economic difficulty with the increase of oil prices. To avoid it will get worst, at least the government is considering the public as consumers so that they could spend continuously and keep generating expenses. 2.2 RESEARCH PURPOSE / OBJECTIVE As everyone is excited about the rebate for cash, nobody predict that someone else can take advantage or opportunity from the claim process. Since there were cases reported and still under investigation, it is believed that there will be more to be reported. By discovering the details of the process, the proposal of this research will explore every point of the claim process for appropriate action. The purpose of this research is to: 1. To identify problems faced in the administering of the rebate claim. 2. To recommend solution for the problems faced. For the first purpose, this research intends to analyze the opinion and feelings of public towards the claim procedures it will check on how the cash payment is being paid when the owner submit their documents. Through out the process, owners just have to wait above three to five minutes only till they get their cash. But this does not include their time queuing when they are many people in waiting. In normal circumstances, there should not be any problem encountered by the owner of the car if they submit all the relevant documents. However, in certain cases when owners couldn’t get their claim, there must be something not right somewhere. This is where the investigation starts by checking the information from the relevant documents. For example; whether the owner’s registration card is matched with the name in the identity card. Further, all the relevant information will be checked through the system by looking at the registration card, road tax, as well as the insurance cover note. For the second purpose, the proposal will investigate further how a person or owner of a car could not get their claim. In some cases, it could be the information from the owner’s identity card which does not match the information in the registration card. This will have to get approval from the registration department and the cooperation from Malaysian Road Transport Department (JPJ). Then the proposal will determine on when or how the owner can get their reimbursement accordingly. CHAPTER THREE 3.0 SIGNIFICANCE OF THE STUDY The importance of this study will create the awareness among public so that they will be very careful in submitting their claims for a rebate. In order for them to get the reimbursement, they need to fulfill the requirements by Pos Malaysia Berhad. Owner of a car or motorcycle must bring their registration card, identity card and also their insurance cover note. With this research, vehicle owners must be aware that Pos Malaysia Bhd, can only ask their identity card and fill the appropriate form. If it is matched, they will get their RM 625 for car and RM 150 for a motorcycle. This research will also help to solve problems faced by Pos Malaysia Berhad, and also the Police department. If there is proof that the fraud is done by Pos Malaysia’s personnel, the management will take preventive measures before appointing the personnel at all counters at Pos Malaysia. Pos Malaysia Berhad, will have to check their personnel in charge thoroughly before they are authorized to pay cash to vehicle owners. From the study the research will also help to minimize the problems faced by the public and Pos Malaysia Berhad. Public will be very alert on the documents needed by Pos Malaysia Bhd, while the management of Pos Malaysia Bhd will strictly monitoring their staff during the rebate process. Hopefully, everyone awareness and commitment will hinder fraud and scam cases for the public interests. 3.1 SCOPE OF THE STUDY The scope of this research will be conducted within the means of the researchers. It will be done according to the fraud cases reported by newspapers and police. So far, there are only 24 cases reported all over Malaysia and the researchers will go out and look for their investigations. The researchers will start the investigations from newspapers reports and will need the full cooperation from Ps Malaysia Berhad to get the details. Besides that, researches will look into the police reports lodged by dissatisfied owners and these owners will also be the targets for further investigations. CHAPTER FOUR 4.0 METHODOLOGY FOR DATA COLLECTION The processes that will involve to gather information are interviews and procedures observation in the reimbursement process. Researchers will hand out research questions to the dissatisfied vehicle owners and also research questions to Pos Malaysia Berhad’s staff who handles the cash payment to car owners. Researchers also will gather information from newspapers reports nationwide and collect some information from the Police Department. Besides that researchers will find out more information on the rebate claims especially from Malaysian Road Transport Department (JPJ) pertaining to qualified owners and requirements needed before vehicle owners get their claims. 4.1 DATA COLLECTION PROCEDURE The research focuses on the sample or data set consist of newspaper articles regarding the issue and data collection from Pos Malaysia Berhad from April 2008 until February 2009. 2. DATA ANALYSIS Data obtained from this study can explain the association between the Malaysian public and the problems arise. It can be described the problems were arise due to lack of information provided by Government of Malaysia, dissatisfied attitude from Malaysian public and the irresponsible staff that is responsible for the rebate process. CHAPTER FIVE 5. DATA ANALYSIS AND RESULTS I. YEAR / MONTHS |JAN |FEB |MAR |APR |MAY |JUN |JUL |AUG |SEP |OCT |NOV |DEC | |2008 |18 |13 |47 |16 |8 |23692 |8150 |3512 |3388 |1826 |1697 | 1345 | |[pic] Figure 1: Feedback received from the Malaysian public for the year 2008 Malaysia is Southeast Asia’s second biggest crude producer after Indonesia. Like its bigger neighbor, it is also a net exporter of crude oil but has the same dilemma to face over the cost of subsidies. The cost of artificially keeping down the retail price of petrol, diesel and liquefied natural gas cost Malaysia RM4.8 billion in fuel subsidies in 2004. The Government has decided to tackle the diesel subsidies first and leave the issue of heavily subsidized petrol until later. Subsidies for diesel, widely used by farmers, fishermen and read transport operators, Given the current global fuel prices, the increase of fuel prices in Malaysia was unavoidable. The proposed increase in fuel prices will not only affect owners of vehicles but will hit consumers across the board as everyone will be affected by an increase in the prices of goods and services. Figure 1 show the feedback received from the Malaysian public in relation to fuel rebate, according to the chart, the first feedback received from the Malaysian public was from month of January 2008 although Government and Pos Malaysia Berhad released their full statement in the month of June 2008. Basically, the most higher percentage of feedback received from Malaysian public was on the month of June 2008 whereby Government of Malaysia released their press statement on 4th of June 2008 for the first phase of fuel rebate. The feedback received increased rapidly in the month of June 2008; fifty four percent of the public respond to the statement due to Pos Malaysia Berhad is ready to disburse cash rebates on Saturday, 14th June 2008. It was informed by Pos Malaysia Berhad the implementation of the phase one of fuel rebate was for eligible Malaysians whose road tax were purchased or renewed with effective date from 1st April 2008 until 31st May 2008 can start to claim the subsidy from 14th June 2008 until 31st March 2009. The increased in feedback received from month of January 2008 until June 2008 also due to Malaysian public were respond to the press statement regarding problems occur while the public start to claim the subsidy such as they are not entitle to the claim due to their citizenship and some of the public not using diesel or petrol for their vehicle which made them not qualify for the rebate. The feedback received decline in the month of July 2008; nineteen percent of the public respond to the implementation of the phase two of fuel rebate for eligible Malaysian whose road tax were purchased or renewed with effective date from 1st June 2008 until 31st March 2009 can start to claim the subsidy from 1st July 2008 onwards. Although feedback received decline in the month of July 2008, Malaysian public were respond to the press statement regarding their qualification. They raise inquiries towards Pos Malaysia Berhad while being informed via medias the terms and conditions to claim the rebate by the Government early June 2008. This is because the public need clarification from Pos Malaysia Berhad as the pay-out agent for the fuel rebate. The feedback received remained decline starting from the month of September 2008 until December 2008 due to Malaysian public beginning to understand the problem occurs and why it happens when the public start to claim their rebate at post offices. II. YEAR / MONTHS |JAN |FEB |MAR |APR |MAY |JUN |JUL |AUG |SEP |OCT |NOV |DEC | |2009 |1531 |987 |0 |0 |0 |0 |0 |0 |0 |0 |0 | 0 | | [pic] Figure 2: Feedback received from the Malaysian public for the year 2009 Figure 2 show the feedback received increased in the month of January 2009; sixty one percent of the public respond to the press statement regarding problems occur while the public start to claim the subsidy due to some of the public claimed their fuel rebate have been cashed by an unknown persons. It has been reported that, suspects said to be Pos Malaysia Berhad officer. Although feedback received decline in the month of February 2009, Malaysian public were still respond to the press statement regarding the defraud happened in post offices due to the date for claiming the fuel rebate is approaching which is 31st March 2009. It has been reported that, the last day for the public to claim the rebate will be extend until middle of April which also made the public raise inquiries to Pos Malaysia Berhad. CHAPTER SIX 6.0 CONCLUSION The detection of company difficulties is very difficult. One of the reason is the public has publicize their dissatisfaction incidents or process to the medias which lead the researchers gather information form newspapers report nationwide. It has been publicized by the Government that there will be no problem during the fuel rebate process. However, the study has shown otherwise. According to the source in Pos Malaysia Berhad, the problem which caused by the Pos Malaysia Berhad’s officer is due to the technical problem which is lead the officer to pay-out the rebate to different person such as there was no ownership transfer or the system used in the post office was not up to date. Some of the cases also were more of a friend helping another friend who the friend may be entitled to it, but the friend was not supposed to make the claim. This incident led to the uncovering of more such cases and for Pos Malaysia Berhad is to explain to the Government and public regarding this matter. According to the source in Pos Malaysia Berhad, the only agency entrusted with making such payments has conducting an in house investigation and at the same time assisting police. Pos Malaysia Berhad as the pay-out agency for the fuel rebate has informed the public not to rush to post offices due to limited cash in the post offices. It has been suggested to the public by Pos Malaysia Berhad to drop off the application forms and the public will receive the money order within seven days however, most of the public are not eager to wait for the money order. To made sure the process of claiming the fuel rebate run smoothly, Pos Malaysia Berhad has give several option to the public either claim the fuel rebate through money order, cash or direct credit transfer into their bank accounts. If the public choose the direct credit transfer onto their bank accounts, the public will receive their claims in three days. Based on our research, it can be concluded that there is a hassle and tension between Pos Malaysia Berhad and Government. Since all the data shows the Government must take the blame for the chaotic scramble in post offices nationwide following the hasty implementation after an equally hasty announcement by the Government to pay the fuel rebates. The result from the study also shows it could be done with proper preparation and time for the smooth implementation for the payment. Pos Malaysia Berhad was more than willing to accept the job for financial gain through its widely distributed network. The findings indicate, the cash rebates to owners of cars and motorcycles is to cushion the impact of higher fuel prices are necessary to ease the burden of the public. 6.1 LIMITATION OF RESEARCH This study was completed with several limitations. Firstly, this study focuses on the problem faced by Pos Malaysia Berhad in administering the fuel rebate claims that were published in the newspapers, therefore data collected not directly through the Pos Malaysia Berhad officers. Secondly, the data collected from the newspaper may be subjected to different interpretation especially the data was issued by the dissatisfied public to the medias. There was no statement was release by the Pos Malaysia Berhad regarding some of the problems faced in administering the fuel rebate claims. The data collected from one of the Pos Malaysia Berhad officer also is very limited due to secrecy that they have to protect therefore, the results of the research is very limited. 6.2 RECOMMENDATION FOR FUTURE RESEARCH Future research can be further covers several problem faced by Pos Malaysia Berhad internally. By having good rapport with Pos Malaysia Berhad, researchers can determine the cause of the problem internally and can recommend the solution for the problem faced. It will be interesting if the problem faced by Pos Malaysia Berhad can be identified before the fuel rebate claims period. In this situation, the effect of the problems will be considered as “isolated problems”. It is suggested that similar study be conducted using questionnaire to the Pos Malaysia Berhad officer. 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