SJ & ASSOCIATES RESEARCH

OUR CURRENT WORKS ARE

• Critical Vulnerability and Threat Analysis
• Competitive Business Intelligence
• Countering Industrial Espionage
• Threat Assessment
• Due Diligence (Non Financial)
• Undercover and Surveillance Expertise
• Market Sampling
• Security Training
• Fraud Investigations and lastly
• Vendor verification (Combating Vendor Kickbacks)
• Special Advisory Services, You advise your problem or problems and we will advise whether we could handle it or otherwise within Malaysia or Overseas with our Associates assistance.

WE HAD ASSISTED MANY IN

• Polygraph Examination
• Technical Security Counter-measure
• CTPAT Compliance Assurance
• Local and International Assets Search

CASES HISTORY


First Case: When the China market starts opening up, a foreign company owners interest in Penang diverted to China and he starts investing in China. Leaving everything in trust, log stock and barrel to the local GM to run the Penang operations. For next three year the operations for the peripherals business operates well. More orders came in, the company could not cope up. During the period the owner made only two visits. A Manager suggested to the GM that why don’t they order additional machineries to take up the orders and not just decline the order. This was agreed to. Later the GM had his own ideas when the machinery came in. Good running machineries were classified as beyond economical repair and sold, not to a scrap metal company but to a bogus company. The GM set up his own company with the machines and took on the additional orders. He became greedy and took on more orders, even from his own company. After about a year the Group Financial Controller in Hong Kong picked up the numbers, there is a Red Flag in the Penang operations. Something seems to be wrong. A consistent flow of cash from regular clients seemed to dip. The Local Penang Plant GM says nothing wrong, but the books shows a red flag, nothing seems to be consistent now. We were called in. We first checked the books. The figure tally’s with the Financial Controller’s figure, but the orders and payment were not consistent, which in past years shows regular consistent orders. We interviewed the employees, nothing came out of the interview. We interviewed vendors. Nothing came out from the regular vendors, all raw materials are in order. We decide to interview some old employees that left within the last one year. From these interviews it emerge that the GM had opened up his own facility. We then approached separately some of the employees with the evidence. The employees confessed, we then approached the GM with the evidence. There was no evidence from the vendors for raw material purchase as the vendors also supply the new company. So there was no hanky panky indicated with the old company. But the vendors supply the same raw material to the old company and the new company. Company records check were made, the new company was later identified as in the name of the GM’s brother and sister in law. Based on evidence the GM confessed. Based on our findings. A restitution was order was requested by the owner through the courts.



Second Case: A US rubber product company licensed an Asian Company to produce under license, rubber and leather based products in a neighbouring country. The US company discovered that some Human Rights NGO’s and local Unions with foreign affiliations were not happy over the issue and incidents, emerging out of that country, that workers were falling sick on the work lines in these companies. Some workers not wanting to seek medical assistance came to work, as they do not want to be fired for non attendance at work. The workers were fired indiscriminately for non attendance at work when in reality they are sick. There was just too many people out of work and there are people waiting for work outside the manufacturing concerns facilities looking for work. Some of these new staff need only a few hours of training to be placed on the facility production floor. We were hired to look into why, so many workers were falling sick and why a number died. Provided with about nearly two hundred names to be interviewed including workers that are still around but sick and not working, some that were fired, some that died and why they died which hospital diagnose them as dead on the production floor or at the hospital. After about two half months we completed our case and the result of it. The Companies were insensitive to safety measures at work, like not providing safety mask for those working in the glue department, where glue work of rubber based products were undertaken. This is mainly in the line where the soles were gummed up to the upper body of the shoes. Some of the workers were on the line either for eight or twelve hours shifts. Some of those not so healthy or weak, after about six months through non use of safety masks, they develop a rough cough and after about a few months later their body parts hurts internally and blood ozzes out of their mouth or nose or when they cough they cough blood. It became serious after about eighteen months of work. If they are absent after a few days their work is taken over and not wanting their work to be taken over they still slogged. Some just fell down at home and were taken to hospital by family members, friends or neighbours, and some just fell down at the work place and died after a few days in hospital. The diagnosis and from the death certificate, interview with some doctors, we interview some workers on work conditions and those still in hospital as well as some of the family members, the cause being the body parts just shrink and they develop some complications and died. Most of it from sniffing glue, not through addiction but whilst working. Some became addicted to the glue consciously and some unconsciously.



Third Case: A large facility in Penang was losing its products that comes in as well as products that goes out of the facility through the various Transportation company. They were at a loss as to how these could occur. We suggested that they undertake a Security Survey. We explained that a Security Survey is a critical on-site examination and an analysis of their facility to ascertain their present security status, to identify deficiencies or excess, to determine what protection would they need and to make recommendations to improve the overall security. After briefing as to how the security survey would be undertaken, the time frame and cost agreed too, we undertook a Security Survey. The survey took about three weeks. We will need from ten to fourteen days to write up the brief report, the results of the survey. We interviewed all Department Managers of the respective departments, we provided them a format to look at and response to some questions within the format as regards to their areas of their responsibility. We looked at the security team recruitment process, their background, training, daily and shift work. We come in during all shift change as well as look at the various shift work, time frame. We viewed the main gate and the side gates as well as shipping and Materials Department Operations, Finance Department Operations, vendor payments, how are they paid, when, time frame and many other details from the other department. We pay more attention to sensitive operations like Shipping and Materials, as well as Purchasing, IT and storage of sensitive information for Operations Recovery in cases of a crisis or disaster. Finally why did they had losses, this is due to not carrying out any checks of contents against delivery documents, coming in and items taken out.. The people working internally with the cooperation of the vendors were ripping the company off. Guard Patrol Operations were operated without key points. Standing Operating Procedures (SOP’s) are available but had never been updated. These were SOP’s that were utilized since day one of the first Chief Security Officer. No proper security and employee orientation in place. In our recommendations, we recommend that the company review the pay scale of the guards, so that they have a sense of belongings, as their pay was well below that of the line operators. We also recommended a lot of other things like reorganize the Guards with CCTV Operations from the Guard Post, to be upgraded later after their new Operations wings comes in.



Fourth Case: There was a crisis in a neighbouring country. A US company was worried as regards their expatriates as well as local workers and their operations in that country. We came in, and with the assistance of another foreign consultants we surveyed the facility including every single employees residence from the Managing Director down to their managers and other employees. The assignment, under the threats that may come in anytime, we graded it just like the traffic light, Green means okay, orange means you standby and be ready for a possible evacuation. When classified Red we evacuate. The grading depends on the situation existing internally at a given point in time. The US company requires that if the situation deteriorates the company could still operates from either Bali, Singapore or Hong Kong. We plan it in such a ways that if anything occurs in the neighbouring country we could still operate from Bali, Singapore or Hong Kong as the local company managers are willing to stay behind and look after the operations, with instructions from the GM. As such we had an operations CD ready and placed in banks in Hong Kong and Singapore and another in Bali. That if we evacuate, just picked up the CD and we operate from where we are. All done, we never get to practice our evacuations procedures that we put in place for this company, as the situation improves and nothing happens.



Fifth Case: A Japanese company called us stating that they suspect a local company using their brand name, was producing their printer ink and selling it within Malaysia and Thailand. We carried out a market sampling exercise within Penang, document the purchase and kept the receipt for records purposes. We ourselves are not aware which one is the genuine ink and which is not. The items were sent to Japan for their Chemist to look at. After about two weeks the test result came back and we were able to identify which company sells the counterfeit printer ink. We made more purchases from the company and forcing the company to order more from its suppliers. We purchased more, later after winning over, the confidence of the company the shop owner asked where did we sell our ink and asked why did we purchase so much? Just what we were waiting for and he fell into it. We said that we sell the ink in Indonesia and why we purchased from him, as his cost price is a bit cheaper and we could make some profit. We later ordered half a 20 feet container load of ink and later a full load. We also made some other checks as part of the investigation plus some surveillance which is static and mobile. We were able to identify the supplier to ther shop and leading on to the place where the ink was packed. The product was so good that the imitation product is identical right down to the box.



Sixth Case: Improvement to Kulim High Tech Park Overall Park Security. Our client offered his service to the Kulim High Tech Park and requested us to carry out a Security Survey. This exercise took us five months to complete. We set up office at the Techno Centre of the Park with some staff. We undertake a Survey of the Area, this is a large area without any perimeter. There were a number of large companies around. We interviewed almost all the Security Managers within the Kulim High Tech Park. This is followed by meetings with some CEO’s/COO’ss at a briefing. Meetings and briefings with the local District Police Chief, studied some crime index data that was made available to us. We interviewed the local Municipal Council Chief and his staff, the local Police deployed within the Park. For about two weeks, we carried out Traffic surveys from within all access roads into the Park, to study in depth the traffic flow from the various ingress and egress. We came up with a drawing and analysis of all hijacking cases with the Park that we are aware of and including all other hijacking cases in Malaysia as well as any criminal problems that is known occurring within the Park area and within Kulim. This is with the assistance of the Police, who provided good cooperation as they are in the loop of our exercise. Based on our study a CCTV system was also included in our recommendations. We also came up with security recommendation for an inland air container depot included with this study. This means all packing/documentation checks and sealing and clearance is being carried out in Kulim and the companies just drive straight to the aircraft at the Penang airport, without any Customs check and this make it faster, as all checks were already checked from the Deport where Customs are stationed. No storage whilst waiting at the airport thus reducing opportunities for pilferage at the airport. Having completed this study after five months we made our presentation to the Kulim High Tech Park CEO. the recommendations was accepted and had been implemented into the Park since 2007.



Seventh Case: A high level team from an International Bank was to fly in into a neighbouring country to meet a bank board of directors for a high level meeting. The international bank board were worried as regards their senior executives security. We were requested to prepare a Threat Analysis at the point in time, in that country’s capital where the visit is to be undertaken, look into the security aspects and prepare a survey, to include safe routes, to and fro the hotel to the national bank, safety of rooms, security arrangements and the nearest helipad for evacuation in the case it is needed. We contacted our local contact, meet the local police seeks assistance. The hotel recommended was selected with a helipad nearby. A Threat Analysis was undertaken. The high level team came in and left quietly after doing its job One of our request is for no publicity for that visit. So that any interested group could not create or come up with any security problems.



Vendor Verification: Competitive markets can be a breeding ground for corrupt practices, most of the industry is are aware of this but just donot know how to address the problem. One there is no verification as to who are the vendors, are they really legally registered. Are they connected to any of the employees within the facility like the Purchasing Clerk or his Manager, the Engineering Manager, the Materials or the Facilities Manager, Human resources manager or his Officers, and so on. Have the company verified that they really have an office, is at a properly designated office with its show room and market. We in Asia has employees who seek to enrich themselves by taking "bribes or commissions" seeking contracts from the employees company. Everone says thats part of the culture, but that dos not mean that you have to accept it when it is offered or you requested for it. One of the ways to prevent it is to ensure that there is a clause in the employees contract, right from the Security Guards, receptionist to the Department or Division general managers, stating that if they are caught taking bribes from vendors that they will be requested to leave. A case in point, a Human Resource Director had been taking RM 100.00 per month from forty five busses that is under contract to the company. The HR Director has an inbetween HR Officer to handle the buses, but the polict decision as to hire or otherwise is handled by the HR Director and his friend a Department Manager, the Purchasing Manager. These latter two colloborated to ensure that the company favored by them wins the contract. As the bus operations moves day by day, there had been complains by employees that the bus is dirty, breaks down once too often, did not take the regular route designated. A number of employees miss their buses and therefore comes late to work (then disciplined for being late, without due consideration), rumors has it the Bus vendor did not look into employees complain as they felt that through their monthly payment to the HR Director, they are being protected. One fine day an employees wrote to the MD and to their Corporate Headquarters as regards the problem. Corporate Security flew in into Malaysia to look at the case. A Vendor verification exercise was undertaken and later when the contract was up for renewal, a proper vendor verification of all those that tendered was carried out with the proper interview, a new bus committee made the selection for the new bus vendor. This is one incident that could have been avoided had a vendor verification been carried out. In another case an engineering parts vendor was utilized without and verification as to who the vendor is. later a suprise check was undertaken by an external vendor and our team member, on the request of corporate HQ. The engineering parts vendor was found to be the brother in law of the Engineering Manager. Items of parts for the engineering department were found to be expensive when a market sampling of the same item were taken and purchased from other vendors. The vendor that had been supplying the parts to the Company where his brother in Law had been the Engineering manager, had been taking charging more then 30 to 70% on the basic costs of items bought through them. Apart from the latter, if that is not enought, when ten items are bought and delivered to the stores in boxes, only eight or even six are in reality delivered. its always short. But the Invoice for payment always states, ten is delivered. signed for by the shipping department. This activity had gone on for a number of years. The discovery was as a result of a tip off to Corporate HQ by a disgruntled employee.



Due Diligence: An electronic company from overseas wanted to set up a manufacturing plant. The fact was advertised within the Industry and a lawyer as well as an Engineering company was engaged. A few Engineers was gathered in Malaysia to look into some aspects of this venture. The owners and planners, in their haste left everything to an American Engineer who was an ex VP of a company in Malaysia that was asked to leave for bribery and non performance of work, whose production floor in reality, is the bars in town not far from the old facility where he was. The lawyer engaged was, not aware of the background of this American Engineer and his team of engineers in Malaysia. No due diligence was carried out on the background of those taken in right down from the American Engineer to the Malaysian Engineers. No due diligence was also taken on the land to be purchased, what was the land utilized for in the past and whether it is suitable for an electronic facility that is sensitive to chemicals and underground water. No soil test was undertaken. vendors were taken without any checks and some vendors just operate from a table with a phone, they were just acting as middle man for their Malaysian Engineer friends. When the project did not materialize, points to no due diligence was undertaken right from the start Due Diligence could assist in ensuring that the right appointments of key executives are made. That the right piece of land identified for a certain industry is of the right choice with no encumberances or had never been utilized for chemical storage or no chemicals been utilized on the land or had been buried on the land. If a facility is to be purchased what is the status of the facility is it clear of any legal encumberances. The buildings on the land is the local Municipal Council building inspectorate or the Fire Department had approved that the building is safe for reuse?



Training and Seminars: Target Hardening and Anti Hijacking Seminar at University Science: Penang had Hijacking cases of its computer chips as well as robbery near the airport and on highways, within the last few years. Many Facilitys within the industry in Penang, Malaysia cried out for some actions. The Police already had a task Force called Ops Viper where all cases are coordinated and operations are being carried out at Federal level in Kuala Lumpur. This Task Force had been carrying out a good job. The Penang Chapter, of the Malaysia Crime Prevention Foundation had a meeting and decided to assist, Dato Syed Jaafar was tasked with coming up with a two days seminar in cooperation with the Penang Police. Over a Period of two years we came up with two national level seminars, one on, “Anti Hijacking” and the other on “Target Hardening”. Both seminars were coordinated with the assistance of the Penang Police, the Penang Security Group and the Joint Security Council, as well as the University Science, School of Social Science. Dato Syed Jaafar also delivered a paper as one of the seminar speaker and panellist. We could come up with Guards, or special security training, like security awareness, counter-terrorism surveillance awareness, surveillance and counter surveillance, or just discuss with us and we may propose a custom training programs to suit your facility security-wise.

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