The Fight Against Corruption

7/27/2019 The Fight Against Corruption

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Transforming MalaysiaThe Fight Against Corruption

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THE MALAYSIAN ANTI-CORRUPTION

COMMISSION (MACC) began its operation officially

on January 1, 2009, replacing the Anti-Corruption

Agency (ACA) Malaysia. It was established by

legislation, namely the Malaysian Anti-Corruption

Commission Act 2009 (Act 694). Prior to that,

efforts to combat corruption were formally carried

out by a small unit under the Prime Minister’s

Department which handled corruption-preventionactivities mainly through lecturing. Concurrently,

criminal investigations involving corruption were

being handled by the “Special Crimes” branch that

was set up within the Police Department while the

prosecution of corruption cases was conducted

by the Prosecution Division of the Law Ministry.

In view of the fact that anti-corruption efforts

were being carried out independently by different

agencies, the Government decided to consolidate

them under one roof known as the Anti-Corruption

Agency (ACA).

On July 1, 1973, the National Bureau of

Investigation Act was passed by Parliament and the

ACA’s official name was changed to the National

Bureau of Investigation (NBI). This change of name

was for the purpose of giving more power to the

Bureau, which not only handled cases related to the

National Interest, but also represented the first

time a department had been established by a legal

Act.

The name of this department then reverted back

to the original name, ACA, on May 13, 1982, when

the Anti-Corruption Agency Act 1982 was passed by

Parliament and put into force. The main objective in

changing the name was to reflect more accurately

the role of the Agency as an institute that was solely

responsible for the prevention of corruption.

In 2008, the Government and Parliament agreed

that the MACC be established in order to enhance

the effectiveness and efficiency of nationwide

anti-corruption efforts, as well as to improve the

perception of independence and transparency ofthe functions of the Commission. The MACC is

governed by a system of checks and balances to

ensure that the Commission operates in line with

national laws and the aspiration of society.

The Commission commenced its operation on

January 1, 2009 and was officially launched on

February 24, 2009, in which the five mechanisms

established by law were officially enacted.

Vision1. To create a corruption-free Malaysian society

based on high spiritual and moral values.

2. To make the MACC a professional anti-corruption

agency par excellence.

Mission

1. To eradicate corruption, abuse of power, and

malpractice in Malaysia.

2. To concertedly and continuously strengthen

integrity and enhance expertise through human

resources development programs.

Objective1. To continually address and eliminate all forms of

corruption, abuse of power, and malpractice.

MACC Background:

Transformation of MACC and Amendment of Law

Creating a Corruption-Free Malaysia

Selamat datang! A very warm

welcome to those attending

the 6th Annual IAACA General

Meeting and Conference. We

are pleased to have you in

Malaysia as we work together

to fight corruption at all levels.

The Malaysian Government,cognisant of the prevalence

of corruption and recognising

the dangers of corruption to

economic growth, has set itself

the task of fighting corruption

by actively supporting the need

for international cooperation

through the Malaysian Anti-

Corruption Commission (MACC)

with the resolution of creating a

corruption-free country.

This General Meeting and

Conference is an important event

in the ongoing effort to combatcorruption. I am pleased that

Malaysia has undertaken the

formidable challenge related

to anti-corruption efforts. The

success we have in driving away

corruption is directly related to

the economic success we will

enjoy in the future. In particular,

the IAACA is significant to the

MACC as we strive to make

improvements in the processes

of detection, prevention, and

prosecution of corruption.

The IAACA General Meeting

and Conference will focus

on technical assistance and

information exchange, two

crucial areas for capacity-

building for all law enforcement

agencies seeking to identify and

eliminate corruption.

In my nearly 30 years of fighting

corruption, I can say the patterns

have changed tremendously.

Foreword

Corruption used to be very

domestic, very local, and usually

took the place of a simple cash

payment which could be easily

traced and identified.

Today, it has gone far beyond this

with the progress in InformationTechnology. The cross-border

element is so normal today, and

for this reason, the technical

assistance and information

exchange have become more and

more important and very much

needed today. As corruption

is now often tied to money

laundering and international

crime syndicates, anti-corruption

agencies cannot work alone. We

must evolve.

As for the MACC – previously the

Anti-Corruption Agency (ACA)

of Malaysia – we have been

one of the founding members

of this association since 2005.

IAACA aims at facilitating the

implementation of UNCAC,

consolidating international

cooperation to combat

corruption, promoting measures

for prevention of corruption in

both public and private sectors,

and facilitating the exchange and

dissemination of expertise and

experience.

To raise awareness of

international cooperation against

corruption, goals have been set

for fostering capacity–building

for anti-corruption authoritiesand improving law enforcement

skills for officials from member

states, based on networking as

well as the collective expertise

and resources of its membership.

This Conference and General

Meeting should provide an

opportunity for those who are not

only responsible for preventing

and controlling corruption, but

to all those who are increasingly

concerned about the devastating

effects of corruption and equally

convinced that it is now timeto strengthen our collective

efforts against this practice.

This conference will help us all

in looking for the best practices

from the participating countries

as we collectively address the

issue of corruption.

With this note, I hope that

together we will put into action

what we have agreed upon and

be committed to combating

corruption. Again, welcome to

Malaysia. It is our sincere hope

that your time here is enjoyable

and productive.

Dato’ Sri Abu Kassim bin

MohamedChief Commissioner

Malaysian Anti-Corruption

Commission (MACC)



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Fighting corruption is now an essential part of

the government’s ambitious plans to transform

the nation and accelerate economic growth.

Spurred by its determination to achieve the

goal of becoming a high-income nation by the

year 2020, the Malaysian government made

fighting corruption a priority which needs to

be immediately addressed by both the public

and private sectors. Various initiatives have

been implemented to encourage integrity andtransparency as part of the National Key Result

Areas (NKRA) goal of fighting corruption under

the Government Transformation Programme

(GTP). Seeing the effectiveness of its anti-graft

campaigns, the government seeks now to share

the various techniques with countries abroad.

The IAACA, which Malaysia has the honour of

hosting this year, is an international organisation

with the objective of implementing the United

Nations Convention Against Corruption (UNCAC)

and has prioritised the importance of technical

assistance and information exchange from

its establishment in 2006. The Malaysian

Anti-Corruption Commission (MACC) Chief

Commissioner Dato’ Sri Abu Kassim Mohamed

was appointed as one of the executive committee

members of the IAACA, a platform seen as a

golden opportunity for national anti-corruption

authorities to discuss groundbreaking stratagem.

The IAACA – headed by president Professor Cao

Jianming, Prosecutor General of the Supreme

People’s Procuratorate, People’s Republic of

China – has successfully hosted a series of Annual

Conferences and General Meetings worldwide,

Business Practices.” Another Workshop deals

with “International Recovery of Ill-Gotten Assets:

Case Histories,” while the final Workshop is

entitled “The Role of Prosecutors and Judiciary in

Combating Corruption.”

The Conference will be opened by the Prime

Minister of Malaysia and will welcome speakers

from all around the world. The closing ceremony

will then be officiated by the Deputy Prime

Minister of Malaysia. Highlighted speakers

include Dato’ Sri Abu Kassim Mohamed, member

of the Executive Commitee of IAACA and Chief

Commissioner of the MACC; Dimitri Vlassis,

Chief of Corruption and Economic Crime Branch,

Division for Treaty Affairs, United Nations Office

on Drugs and Crime (UNODC); The Honourable

Tan Sri Gani Patail, Attorney General, Attorney

General’s Chambers Malaysia; Patrick Moulette,

Head of Anti Corruption Division (OECD); Maria

Schnebli Federal Prosecutor, Office of the

Attorney General, Swiss Federation; Dato’ Seri

Idris Jala, CEO of PEMANDU and Minister at

the Prime Minister’s Office; Martin Kreutner,

President of European Partners Against

Corruption Network (EPAC/EACN) and Chair of

International Steering Committee, International

Anti-Corruption Academy (IACA), Republic of

Austria; and Giovanni Kessler, Director General,

European Anti Fraud Office (OLAF). There will also

be speakers from INTERPOL, the international

police organisation, and other prominent

speakers from member countries.

A total of 1,000 participants from 120 different

countries are expected to participate in this

Conference and General Meeting, and the

theme for this year is “Technical Assistance and

Information Exchange.” The Conference will be

an ideal platform for anti-corruption practitioners

to exchange ideas, best practices, and successful

methods.

P H O T O

C O U R T E S Y O F K U A L A L U M P U R C O N V E N T I O N

C E N T R E

raising awareness of international cooperation

against corruption, fostering capacity-building

for anti-corruption authorities, and improving

law enforcement skills, based on networkingand drawing on the collective expertise of its

members. As of today, the IAACA has launched

global anti-corruption resources and a directory

of anti-corruption authorities, collected and

systematised practices of anti- corruption

authorities operating under different legal systems

for its members’ usage.

For this year’s conference, a wide range of topics

will be discussed during the six Plenary Sessions

and four Workshops, which will consist of two

Parallel Workshops each. The Plenary Sessions

are entitled “The Need for Intelligence-Led

Policing in The Investigation of Corrupt Practices,”

“Denial of Safe Havens: Core Elements and

Strategies,” “Income and Asset Declarations,”

“Effective Mechanisms for Capacity-Building

Through Technical Assistance,” “Workshop

Reports and General Discussion,” and “Adoption

of Conclusions and Recommendations: The Kuala

Lumpur Declaration.”

The first Workshop is entitled “Proactive

Investigation: Staying Ahead”, while the second

Workshop is ti tled “Performance, Accountability,

and Integrity in Government Administrative and

“A major milestone

for Malaysia, moving

forward for MACC…”

6th Annual IAACA

General Meeting and

Conference 2012



6 7

As part of its bold “Vision 2020” plan, whereby

Malaysia aspires to become a fully developed, high-

income nation by 2020, it has set out a number of

key initiatives to meet that challenge. Among the

most wide-reaching is the initiative to transform

the very government of the country.

The Government Transformation Programme (GTP)

is an ambitious, broad-based initiative aimed

at addressing key areas of concern to society

while supporting Malaysia’s transformation into a

developed and high-income nation as per the goals

set forth in Vision 2020. In line with “1Malaysia

– People First, Performance Now,” the GTP is

focused on:

• Identifying and addressing the relevant

priorities that matter most to the people; and

• Delivering and sustaining fundamental

changes on a nationwide basis.

The Prime Minister identified seven National

Key Results Areas (NKRAs, see below) following

months of evaluating the people’s expectations

of government and the most pressing issues

were selected to develop the NKRAs. A focused

list of projects and initiatives for each NKRA was

developed to ensure that measurable results for

specific targets could be achieved.

The NKRAs are the responsibility of each relevant

ministry, and the Performance Delivery and

Management Unit (PEMANDU) was initiated to

monitor and measure these achievements. The

NKRAs and its detailed targets were made public

with the publishing of the GTP Roadmap making it

transparent to Malaysians.

Following the first year in implementation, a

majority of the NKRAs achieved more than 90% of

their respective targets; these results were made

available via the GTP Annual Report 2010.

The transparency is a testament to Malaysia’s move

in a new direction to inject more accountability

and growth into its environment. GTP measures

will be implemented to ensure a strong foundation

is laid for the transformation of Malaysia into a

progressive, high-income nation.

Government TransformationProgramme (GTP)


National Key Results Areas (NKRAs)

The Malaysian Anti-Corruption Commission

(MACC) is an organisation created solely for the

purpose of eradicating corruption. Corruptiontakes many forms but, according to the Stanford

Encyclopedia of Philosophy, the most accurate

definition of corruption is “the abuse of power by a

public official for private gain.”

Let’s take the term “abuse of power” as an

example. An abuse of power can take many forms:

accepting bribes, accepting gifts, manipulating

others for one’s own benefit and many others all

constitute an abuse of power. Why does it happen?

In most cases, those who are caught usually have

the same answer: greed.

The Prime Minister of Malaysia, Y. Bhg Dato’ Sri

Najib Bin Tun Haji Abdul Razak, recently attended theCertified Integrity Officer Program and stated that

the government refuses to back down in its efforts

to eradicate corruption, saying, “Corruption is the

country’s number one enemy.” He also stressed that

words alone are not enough to combat corruption;

it is a serious matter and the challenge is enormous.

In line with this, the government stepped up its

approach to combating corruption, establishing the

Malaysian Anti–Corruption Commission (formerly

the Anti-Corruption Agency) in 2009 along with five

free entities, comprised of 42 officials elected by the

people, that serve and act on behalf of the public to

ensure that the MACC and country are corruption-free.

So how does the Commission operate to eradicate

corruption? The principle of the MACC is to act

without favour, and to combat the country’s number

one enemy by attacking it from all angles, and the

commission is built upon trust and faith as it carries

out the duties necessary to eradicate corruption. The

MACC is placed under five external bodies that all

offer supervision – this is known as the “check and

balance mechanism” – as it performs its function

and roles to ensure that the public’s expectations

towards the commission’s independence, efficiency,

effectiveness, transparency, and accountability in

executing its obligations are met. The idea is to

create and maintain a positive public perception

of the MACC, and the government facilitates theirefforts in obtaining public support and cooperation

in combating corruption, abuse of power, and

malpractices.

One of the five bodies of of the “check and balance

mechanism” is the Anti-Corruption Advisory Board

(ACAB), which was set up by the provision of law

under section 13 of the Malaysian Anti-Corruption

Commission Act 2009 (Act 649) and came into

being at the same time as the MACC.

The people of Malaysia are the priority in the work

of the ACAB, as it represents the public and strives

on their behalf to ensure that the MACC adheres

to its intended purpose, working and acting asthe public’s eyes and voice. Sadly, only a small

percentage of the general public are aware of the

existence and purpose of the ACAB, as the means

of educating the public on this matter is limited

to government websites and portals. It is vital to

spread this information and educate more people

on the ACAB’s existence and purpose.

Perhaps most importantly, the ACAB is bolstered by

its sister Committees and Panels, each serving in a

check and balance capacity, and each contributing

to the transparency and accountability of the

MACC. These bodies include a Special Committee

on Corruption, a Complaints Committee, an

Operations Review Panel, and a Consultation and

Corruption Prevention Panel.

Finally, to further boost the public’s belief

that corruption is being treated seriously, the

government has announced that it will be

increasing the workforce of the MACC, looking to

boost the intake of workers by 150 people each

year. It is hoped that increased awareness of the

purpose and existence of the MACC will attract

more people to join in the fight to eradicate

corruption.

MACC: Transparency and AccountabilityFive independent entities work together

as a check-and-balance mechanism


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Compliance units established in the key enforcement agencies,

e.g., MACC, RMP, RTD, Customs and Immigration to verify

compliance of laws and procedures, ensure Hot Job Rotation,reduce bureaucracy, and conduct integrity testing on officers.

Circular by MAMPU issued on 8 March 2010 as guidance for civil

servants to deal with attempts to influence their decisions.

MyProcurement portal launched on 1 April 2010 as a database

for government procurement listing companies awarded

tender and tender price. MyPartnership portal launched on 25

September 2010 disclosing information on privatization and

procurement procedures.

Pilot project completed by NKRA, compiling initiatives

from ministries and agencies on public service delivery

transformation and were distributed to the public and also

announced through radio stations using local dialect of eachrespective state.

Act came into force Dec 15, 2010. Five key enforcement

agencies , i.e., MACC, RMP, RTD, Immigration, and Cus toms now

have Whistleblower Guidel ines, SOP, and reporting mechanisms

and serve as a model to other agencies.

14 Special Session Corruption Courts established throughout

Malaysia, coming into operation on 16 February 2011 to speed

up trials and clear backlogged cases.

Established on MACC website www.sprm.gov.my on 4 March

2010 with the objective of creating awareness and as a

prevention measure to stop individuals from engaging in

corrupt practices. Information will remain on the website for

three years.

A scheme created to give recognition to public servants who

report on corrupt practices and those who refuse to accept

bribes. A circular on the implementation was issued by Chief

Secretary General and came into force on 1 Jun 2011.

Ministry of Finance issued a circular on 8 March 2010 consisting

of guidelines on the implementation of and integrity pact

covering all government contracts.

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Establishment of

Compliance Units in Key

Enforcement Agencies

Parameter of

Support Letters

Disclose details of all

government procurement

and privatization

contracts

Increase public

awareness on public

service delivery system/

change in laws, policies,and procedure

Zero-tolerance

policy supported by

Whistleblower Protection

framework

Completion of Corruption

Case Trials within one

year

“Name and Shame”

offender database

Recognition to civil

servants who reports on

corrupt practice

Implementation of

Integrity Pact

CORE INITIATIVES ACHIEVEMENTS

NKRA INITIATIVES - SUCCESS STORIES

Engagement with relevant agencies has been coordinated, e.g.,

Bank Negara, MOF, AGC, PDRM, Customs, JPJ, Immigration and

MACC. Bill to be sent to Parliament in March.

Engagement with INTAN, JPA, and MOF whereby JPA

will identify officers in procurement jobs and send for

mandatory training. INTAN and MOF to coordinate module

to avoid redundancy in training.

Two accountable officers have been given an ID to access

the database. Moving forward, access to asset declaration

for MPs.

A study has been carried out, with three elements identified

and set to be implemented:

i. Fund donated must be in the party’s name, not

individual’s.ii. Fund donated must be recorded and issued a receipt.

iii. Party’s account is subject to audit.

Already implemented in the key enforcement agencies on

a quarterly reporting basis. Ongoing initiative, enforced

according to findings and research by Compliance Unit on

‘Hot Job,’ ‘Hot Spot,’ and ‘Hot Staff.’

A module implemented by MOF for the public to review past

procurement prices by ministries and agencies.

Only three types of punishment in place for civil servants

convicted of corruption offense, which are suspension from

work, salary reduction, or dismissal. Amendment to PPPA is

in progress by JPA.

All ministries and agencies dealing with public must review

their processes and client charter according to the current

situation. Procedures must be clear, easy to understand, and

timely.

Pilot project done by key enforcement agencies PDRM, JPJ,

and Customs and Immigration to transition from manual to

computerized systems and utilize CCTV as a monitoring device.

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Central Agency to

Manage Confiscated

Assets (CAMCORP)

Mandatory training for

procurement officers

Develop a centralized

database for declaration

of assets at MACC

Revamp on political

financing

Hot Job Rotation

Review the

Procurement Price

Negotiation process

Stiffer punishment for

corruption offenders

Reduce bureaucracy

Reduce discretion

through automation

INITIATIVES IN PROGRESS STATUS

NKRA INITIATIVES - SUCCESS STORIES


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Success in anti-corruption efforts is a result of

the actual investigations as well as the effective

implementation of the investigation process. This

process requires cooperation from the public,

especially in providing quality information. In

addition, members of the public should be willing

to testify either during the investigation or the

prosecution of a case and also have the awareness

to report acts of corruption.

When conducting an investigation (and even in its

own operations), the MACC adopts two approaches,

namely the proactive-based investigation and theintelligence-based investigation.

The proactive-based investigation has been

successful in revealing syndicate-based criminal

activities apart from the norm of arresting and

indicting those involved in acts of corruption.

The intelligence-based investigation typically

centres on following up leads and investigating

reports of individual abuse.

However, acts by individuals are rarely the

sole reason corruption occurs. Weaknesses in

the governance (systems and procedures) of

an organisation uncovered through operationactivities is a contributory factor resulting in the

inefficiencies of employees engaging in corrupt

practices such as allowing room for bribery or

abuse of power. This can, and often does, result in

losses and damages to the organisation.

In 2011, the MACC experienced successes

through continuous, integrated, and well-planned

enforcement actions that required a collective effort

in the implementation of the MACC’s operations

and investigations.

Success of Prosecution CasesIn 2011, a total of 472 persons were convicted

on corruption offences such as bribery,

misappropriation, and abuse of power. Some of

these cases caught the attention of the public as

the sentences had reflected the seriousness of the

crime of corruption.

Statistics on Prosecution CasesIn 2011, a total of 263 persons were prosecuted

in the courts of which 80 (30%) were public sector

officials, 141 (54%) members of the public, 41

(15%) from the private sector, and one politician.

The public sector category further highlights twopersons (3%) from the top management level, 17

(21%) from management and professional levels,

and the remaining 61 (76%) from the supporting

staff level.

The establishment of the 14 Special Courts for

Corruption on 16 February 2011, allowed for

much more timely processing of cases related

to corruption, and this resulted in a significant

increase in the statistics on disposition of

corruption cases as compared to 2010.

MACCMaking an

Impact The Malaysian Anti-Corruption Commission

(MACC) plays a vital role in Malaysia. This agency

is tasked with the role of preventing and averting

the corruption and the abuse of power in Malaysia,

both in the public and private sectors. Promoting

the mission, vision, and objectives of MACC is

not an easy task as it faces a number of potential

problems. MACC is continually seeking ways

to achieve its goals within the confines of both

Malaysian law and the specific MACC Act that gives

the Commission its power.

One of the most challenging obstacles to overcome

is building public confidence in MACC in a society

that is understandably cynical about purportedefforts to fight corruption. Perhaps one effective

ways to achieve this is through education, in order

to reach younger generations and lay a foundation

for a society free from bribery and graft, and

a society which understands and supports the

government’s efforts to do this.

The joint force of MACC, known as a Anti-

Corruption Secretariat and the educational

institutions is put forward as a way to

communicate the positive value of anti-corruption

efforts among youth as they are in their

adolescent and early adult years. Youth is in the

stage of early period of development and at this

stage, SPR aims to develop and strengthen thepositive values and qualities among the young

in our community. Therefore, the prevalence of

corruption and abuse of power can be reduced

in the future. Malaysia will be a country that

possesses the dignity and honour befitting a

country striving to be labeled as world-class.

This collaborative effort was officially launched

on 6 December 2007 and among the educational

institutions that have joined force with MACC/SPR

are as follows:

Anti-CorruptionSecretariat Dato’ Sutinah Sutan, Deputy Chief Commissioner

(Prevention), MACC.

1) UNIMAP

2) Universiti Utara Malaysia (UUM)

3) Universiti Sains Malaysia (USM)

4) Universiti Pendidikan Sultan Idris (UPSI)

5) Universiti Teknologi Mara (UiTM)

6) Universiti Kebangsaan Malaysia (UKM)

7) Universiti Putra Malaysia (UPM)

8) International Islamic University Malaysia (UIAM)

9) Universiti Pertahanan Nasional Malaysia (UPNM)

10) Universiti Sains Islam Malaysia (USIM)

11) Universiti Teknikal Malaysia Melaka (UTEM)

12) Universiti Teknologi Malaysia (UTM)

13) Universiti Malaysia Sabah (UMS)

14) Universiti Malaysia Terengganu (UMT)

15) Universiti Malaysia Kelantan (UMK)16) Universiti Sultan Zainal Abidin (UNISZA)

17) Universiti Malaysia Pahang (UMP)

18) Universiti Tun Hussein Onn Ma laysia (UTHM)

All of these universities are working in partnership

with MACC to promote positive values in

educational society which falls in line with MACC’s

mission, vision, and objectives that focuses

towards a constructive and productive Malaysian

society free from bribery, corruption, and abuse

of power.

IPG (English: Teachers Education Institute) is a

comprehensive,structured, and well-designed

programme serving as an outreach method toreach students and to teach them the importance

of eradicating corruption. The programme is

designed to plant the seed of integrity from early

childhood through education syllabuses and

courses of study. So far, 27 IPGs are involved

in the programme, parallel with the Education

Transformation Programme that was launched by

Prime Minister in early September. Each of these

initiatives functions collaboratively in MACC’s

ongoing effort to combat corruption – in this case,

even before it begins!



12 13


Frequently Asked Questions: Corporate Integrity Pledge and

Anti-Corruption Principles for Corporations in Malaysia (2011)

Anti-Corruption Efforts StrengthenedThrough Education

1. What is the Pledge?The Corporate Integrity Pledge is a doc ument that allowsa company to make a commitment to uphold the Anti-Corruption Principles for Corporations in Malaysia. Bysigning the pledge, a company is making a declaration thatit will not commit corrupt acts, will work toward creating

a business environment that is free from corruption, andwill uphold the Anti-Corruption Principles for Corporationsin Malaysia.

2. How do I execute the Pledge?The soft copy of the Pledge is available for download atthe Malaysian Institute of Integrity website at www.iim.com.my. You may use that to create an execution c opy.The standard Pledge document provides for executionby company seal, but you may execute in any othermanner as long as it is a valid method of execution forsuch a document by your company, under the relevantconstituent documents and laws pertaining to yourcompany.

3. What is the effect of signing the Pledge?The effect of this is twofold: first, a co mpany will bemaking a clear stand, in writing, on h ow it operates, andthis will serve as guidance to the com pany in its business

interactions. Second, a company can use this Pledge toset itself apart from its peers by demonstrating to itsstakeholders that its business operations do not includeany hidden risks or costs that are associated with corruptactivities.

4. Is adherence to the Pledge monitored?The Pledge is a tool to be used by companies and is nota regulatory instrument of any sort. Breach of the pledge– e.g., if a signatory company is later found to have beencomplicit in corruption – will not carry any legal sanctionunder the pledge on its own. Instead, the Pledge will begiven force through self-reporting by the company, tomeet the demands of its stakeholders, in line with themodel adopted under the 10th Principle of the UN GlobalCompact. Adherence to the Pledge is therefore monitoredto the same extent that other non-mandated disclosuresby any company to its stakeholders are monitored –

through scrutiny and demands of the stakeholders.

A system is being developed to eventually enable moreconvenient means of cross-checking whether a signatoryhas in fact been found to have conducted activities thatare contrary to the terms of the Pledge.

5. What happens if I know there is corruption at acompany? Does this Pledge help me?You should report any instances of breaches o f laws orregulations to the relevant r egulator, and repor t anycorruption to the Malaysian Anti-Corruption Commission(you can call their toll-free hotline at 1-800-88-6000). ThisPledge is an additional tool for companies, to encour agethem to work on their own anti-corruption programme

The Malaysia Anti-Corruption Academy (MACA)

was established in 2003 with the idea that the

establishment of the MACA would enhance the

competency and professionalism of the Anti-

Corruption Agency (ACA) officers. The ACA is now,

of course, known as the Malaysian Anti-Corruption

Commission (MACC), but the goal of the MACAremains the same: Enhancing and strengthening

anti-corruption efforts through education.

Many international institutions and organizations

have agreed to cooperate with Malaysia in

developing anti-corruption programmes, including

conducting the courses, trainings, seminars, and

workshops annually that will cater to the Asia-

Pacific region. This is made possible through the

bilateral and multilateral agreements with other

enforcement agencies in the region.

The MACA has a stated vision of being a world-class

centre of education and excellence in anti-corruption.

Accordingly, the MACA objectives are as follows:• To enhance the accountability and integrity of

MACC officers through elective and continuous

training programmes;

• To train human capital in public sectors to optimise

the capacity and capability of anti-corruption;

• To increase anti-corruption training programmes

through smart partnership with the private

sectors;

• To expand collaboration and cooperation with

enforcement agencies, training institutions, and

international bodies; and

International Anti-Corruption Acadamy (IACA)

Chairman Martin Kreutner.

MACA – the world’s first anti corruption academy.

• To organize the capacity and capability

development programmes for global community.

The overall mission of the MACA includes the

following:

• To lead dynamic, progressive and continuous

development of MACC’s human capital;• To increase the capacity and capability of public

and private sectors in preventing corruption

through smart partnerships; and

• To strengthen strategic partnership network at

the international level through anti-corruption

training programmes.

According to International Anti-Corruption Acadamy

(IACA) Chairman Martin Kreutner, the IACA is

expected to sign a memorandum of understanding

with MACC in order to establish a framework of

cooperation for its first International Masters

Programme in Anti-Corruption. Parts of the

programme will be conducted at the Malaysia Anti-

Corruption Academy (MACA) in Kuala Lumpur, theworld’s first anti-corruption academy.

The 24-month Masters Programme, which is

suitable for anti-corruption professionals, police

officers, judges, and other enforcement agency

officers, will be launched on 9 December 2012 to

coincide with World Anti-Corruption Day. It is the

first full-fledged programme on global corruption

studies. The programme addresses corruption from

various perspectives, and will involve participants

from all five continents and all regions.

and internal systems and processes. Thus, it helps acompany to make a first step toward creating the meansto reduce corruption and increase chances of detecting it.It does not change the existing laws or law enforcementinfrastructure relating to corruption.

6. What is the Corporate Integrity Agreement?For companies that want to begin incorporating ananti-corruption policy in its interactions with businesspartners, the Corporate Integrity Agreement is a good wayto start extending your commitment to them. In additionto your declaration of your comm itment via the Pledge,you can enter into a bilateral commitment with yourbusiness counterpart, whether it be a vendor, supplier,JV partner or any other counterpart to operate usingthe same Principles. This agreement can be entered intoindependently or incorporated into your existing contract.

7. What is the effect of signing a Corporate IntegrityAgreement?The form of the Corporate Integrity Agreement provided isa tool for companies to help them agree that it is a policyto engage in clean business relations with one anotherand the adherence to the terms of the agreement will notbe monitored or tracked by any regulatory authority oragency. Once entered into, the terms of the agreementare between the two signatories and are given the sameforce as with any other contractual term. Any sanctions orprovisions for breach of those terms, if any, will be a matterto be determined by the parties in their actual contractualdocumentation.

As to September 2012 a total of 131 companies andcorporate organisation have signed the pledge. Amongstthe pledge signatories are Chamber of Commerce andBusiness chambers such as the Malaysian BusinessChambers (DPMM), The Associated Chinese Chambersof Commerce and Industry of Malaysia ( ACCIM),Malaysian Associated Indian Chamber of Commerce andIndustry (MAICCI), Malaysian International Chamber OfCommerce & Industry (MICCI) , Federation Of MalaysianManufacturers (FMM).

How do I get included on thelist of signatories?Companies that seek to be included on the list of

signatories carried on the website can inform Malaysian

Institute of Integrity by depositing a copy of the executed

pledge with them at the address below, through post,

fax or email:

Director, Private Sector, Level 7, Menara Integriti,

Persiaran Duta, Off Jalan Duta, 50480 Kuala Lumpur.

Tel: 03-62092061/62/66 Fax: 03-62092067

Email: [email protected]

website: www.iim.com.my



14 15

Challenges For MACC Officers

On his job scope:

“Basically, I oversee

investigations at the

Headquarters level, particularly

monitoring high-profile cases.

I also scrutinise Investigation

Papers (IPs) for high-profile

cases that are submitted by the

State. My job scope also requires

me to have discussions with

the Senior Federal Counsels for

high-profile cases. Besides this,

another main task of my job is

to table findings of investigation

before our Operation Review

Panel for consideration –

whether they find it necessary

to review decisions reached by

the Public Prosecutors or theyendorse the decision. I hope for

more understanding from the

public and urge them not to have

unreasonably high expectations

as MACC can only do things

within the law. The Commission

can only proceed if there is

evidence for a particular case. I

hope the IAACA participants and

delegates can learn more about

MACC during the upcoming

Conference just as MACC would

like to learn more from them.”

On Perwaja Steel:“The Perwaja case started back in

1999 when the group suffered a

loss of RM2.85 million. There was

a huge public outcry and the Anti-

Corruption Agency (ACA), as it

was known then, was required to

investigate the case. There were

a number of focus areas in our

investigation such as awarding

of contracts to companies and

payment of large amount of

Han Chee RullDeputy Commissioner, Putrajaya MACCHeadquarters Senior Deputy Director

He served for more than 25

years in the investigative

field, and now serves as the

Deputy Chief Commissioner

(Management and Professional),and his job scope includes

improving the overall

professionalism of the MACC

in terms of care management,

financial and human resource

administration, and control of

security matters involving MACC

premises.

A major challenge inherent in

this position is handling and

managing multiple aspects of

the concept of professionalism

to ensure that real organizational

change is noticeable. It is crucialthat all staff work together to

improve overall integrity and

provides the necessary training

appropriate to the current

needs in terms of the needs of

the investigation of cases of

corruption and mismanagement.

Challenges also presented

themselves when the

government approved an

allocation of 150 new personnel

Deputy Chief Commissioner(Management and Professional),MACC

positions in MACC per year.

Additionally, for the first time

since the establishment of the

MACC, the government approved

a substantial allocation offunding for new projects, such

as the construction of new office

buildings in several states, each

of which is purpose-built for the

goal of detecting, preventing,

and prosecuting corruption.

Perhaps the main challenge

faced by the Deputy Chief

Commissioner is to ensure

that all MACC officers comply

with the department’s code of

ethics. Discipline is a priority in

the organization, and ensuring

compliance with ethicalguidelines is of paramount

importance, and of course,

excellence and professionalism

in disciplinary matters involving

MACC officers is expected to be

upheld at all times.

Managing disciplinary matters for

officers who violate department

regulations has proven to be a

challenge, as well. To address

this issue, it is important that

decisive action be taken, and this

has been the case as stronger

implementation of disciplinary

action has taken hold.

To that end, the establishment

of the Excellent Leadership

Centre of the Academy of Anti-

Corruption is one mechanism

utilised to train and improve

MACC officers. This measure will

ensure officers have extensive

knowledge and special expertise

in their respective fields of

work and it is hoped that by

enhancing and strengthening

training, increased compliance

with department guidelines will

follow suit.

The Deputy Chief Commissioner

hopes that the public will come

to understand the burden

shouldered by MACC in the

pursuit of eradicating corruption

in Malaysia, and also hopes

that the people will support the

MACC as it fights corruption for

the betterment of society and

progress of the nation.

Dato’ Hj Zakaria

bin Hj Jaffar

illegal fees to certain lawyers. But

the main crux of the investigation

was a payment of around RM76.4

million purportedly made to acompany in Japan in connection

with the beam and section mill

plant project undertaken by

Perwaja in Gurun, Kedah. The

beam and mill section project

was undertaken by one of the

major companies under Perwaja

and a Japanese consortium was

supposed to provide technical

assistance while another was the

equipment supplier.

For this case, we should

have allowed auditors like

PricewaterhouseCoopers (PwC)to go into the case first and

tell us from where the money

siphoned off and what the

other malpractices detected

were. What happened, however,

was that we went in first. Had

we let the auditors go in first,

and then investigated on what

they presented to us, our job

would have been much easier. I

remembered we had to spend

months trying to trace the history

and background of the Perwaja

Group, such as how they got

involved in this steelmakingbusiness, the rationale of their

various projects, as well as the

roles and responsibilities of

the board of directors. Had we

asked PwC to prepare a report

on this earlier, it would have

been better. A few months after

our investigations, PwC was

commissioned to prepare a

report on Perwaja. Subsequently,

they came up with a very

detailed report. Clearly, had we

received this report earlier, our

investigation would have been so

much easier. That was the major

hurdle we had faced back then as

we were trying to do the auditors’

job and our own investigations at

the same time.

Another difficulty that we had

faced was gathering evidence. Lots

of evidence was required from

overseas witnesses, particularly

those from Japan. There was no

legal framework for mutual legal

assistance back then. So, we had

a multitude of problems when

we were required to investigate

overseas.

Most of the difficulties were

resolved through the use of

the Internet. At that time, the

Internet was still relatively

new. People did not usually

use it for investigations. So, I

made use of the Internet and

did a lot of searches. In fact,

I communicated with various

parties overseas as well as the

Swiss authorities through the

Internet. Moreover, as Hong

Kong was a Commonwealth

country, they shared the samesystem with us and we had a

history of a working relationship

with them. Thus, it was not a

problem. But for countries like

Japan, we had to approach

the Japanese embassy here to

establish contact. That was how

I got it going, and basically, that

was how we solved the problem.

Times have definitely changed in

the last decade!”

PROFILE

SNAPSHOTS:



16 17

Challenges For MACC Officers

“Currently, I am the Selangor

MACC Deputy State Director in

charge of operations involvingInvestigations, Intelligence,

Prosecution, and Records

Management. That is my main

job. In addition to that, I also

assist my Director in managing

the overall workflow of Selangor

MACC involving Prevention and

Administrative Work. I must

admit that I face challenges in

improving the public perception

on corruption issues.

“Previously, the Internet was

not so widespread and we did

not have to deal with bloggersand the new media. These days,

perceptions can be easily and

rapidly formed. Although we

fulfill our duties according tothe law, we will not be able to

accomplish the objectives of our

job if public perception continues

to be low. My hope for us is

to be more transparent in our

decision making. However, it is

not for MACC officers to reveal

the process of investigations as it

is forbidden under the MACC Act.

Instead, the five independent

committee/panel, represented

by the public, should be used

as a platform to explain the

processes of high-profile cases.

For this, however, we need tochange in accordance with time.

Job scope“Basically my job scope, based

on provisions of Seksyen 7 (c)

(d) and (e), MACC Act 2009,

consists of giving consultation

to public bodies, organizations,

and private companies on how

to close loopholes and also to

relay opportunities on combating

corruption throughout system

control.”

Challenges

“We have to convince thehead of the organization to

have very good systems and

procedures in place, and at the

same time, ensure the system

and procedures are followed

by the staff. An effort must

also be made to monitor the

effectiveness of the systems and

procedures because loopholes

in established procedures can

create opportunities for abuse by

those who lack integrity.”

Overcoming Obstacles

“We have a new approach wecall Corruption Risk Management

“I am attached to the

Intelligence Division at the

Putrajaya MACC Headquarters.

My job scope involves detecting

and investigating any suspected

offence under the MACC Act, anysuspected attempt to commit

any offence under the MACC Act,

or any suspected conspiracy to

commit any offence under the

MACC Act.

“Since working with the MACC,

I have gone through a lot of

problems and challenges. The

MACC cases are mostly difficult

to resolve in the short term.

I say this because corruption

is increasingly a white-collar

crime. Nowadays, criminals

who deal with corruption are

sophisticated and very wise.

Other challenges include gainingcollaboration from witnesses,

particularly foreigners as key

witnesses in solving complex

cases. Many witnesses will flee

or do not want to cooperate and

will hide themselves. So, how do

you locate and persuade such

witnesses? Firstly, I use contacts

from other law enforcement

departments or foreign agencies

to identify or detect the location

of a prospective witness.

Secondly, a good negotiator

is needed to persuade the

witness to cooperate. Thus,

the Commission needs to

invest more in developinghuman capital to combat graft

effectively.

“My hope for public perception

towards the MACC is very simple.

The public must see that the

Commission is just enforcing

the law accordingly. I strongly

hope that the public would work

together with the Commission to

fight and eradicate corruption.”

P. Gunalan A/L PerumalPutrajaya MACC Intelligence Officer

Tan Kang SaiSelangor MACC State Deputy Director Chief

Senior Assistant Commissioner

I believe we also need to engage

in grassroots-style meetings

more often to help us understand

what the public wants. My hope

for all IAACA participants is for

them to make use of their time

here to share their experiences

and exchange knowledge and

information with one another.

“Through mutual cooperation

and networking, we can assisteach other in combating graft.”

Junipah WandiDeputy Director of Inspection and Consultation Division, MACC

Job Scope“To assist an Investigation

Officer for an IPs related to

Financial Investigation by

providing an expert opinion on

financial or by using accounting

as evidence to aid anti-

corruption prosecution as an

expert witness in accountancy.”

Challenges“In my 14 years’ experience

with MACC, there has been only

one case in which I faced an

uncooperative witness against

the accused, which happened

to be his boss. In order to solve

the problem, and convince

him to testify, I referred him

to Seksyen 27 o f the MACC Act

and told him that it would be an

offence for him not to testify in

the case.”

Hope“The public should have faith in

us. We are genuinely working to

improve things.”

that we use as a tool to help the

organization review its systems

and procedures, and at the

same time, they can use this

resource to enhance their system

and procedures to pluck in the

loophole for corruption and

malpractices that can be happen

in the organization.”

Hope“I hope the public will come to

perceive MACC as a free and

independent body committed tocombating corruption.”

Westmoreland Ajom

Senior Superintendent at Forensic Accounting Unit,Investigation Division



18 19


There is no doubt that while eliminating

corruption may be the impossible dream,keeping it to a minimum is critically important

as Malaysia seeks to improve the prosperity of its

citizens. The prevalence of corruption is always a

factor which discourages major companies from

investing in a country.

Hong Kong and Singapore, which commenced

their efforts to minimize corrupt practices back in

the 1970s, have seen the benefit with significant

increases in foreign investment.

Malaysia may have started the battle somewhat

later but their commitment appears to be just as

strong. Involving the expat community is important

because in many cases they can directly assist the

efforts, but equally as important, these expatscan help spread the word that the country

is committed to the process.

The Expat Group has been keen to

support the Malaysian Government’s

efforts to fight corruption, and has

signed the Corporate Integrity Pledge,

as well. During the last two years,

we have worked closely with

the various people charged

with leading the effort

to improve the situation

and find ways to support

their efforts and involve

the expat community. Oursupport has taken several

forms.

In 2010, we conducted

research among resident

expats to gather their views on

corruption in Malaysia as well

as suggestions for combating

it. The findings were shared

with the Government and the

Malaysia Anti-Corruption

Commission (MACC).

The survey revealed that most expats were

concerned about corruption in Malaysia. They felt itwas fairly widespread in Malaysia, although not all

of them encountered it in their day-to-day business

dealings. Most expats felt that the Government’s

efforts would produce results, though they thought

it would take time to achieve these. On the positive

side, those who had experienced living and working

in other Asian countries felt the situation was better

in Malaysia than in other surrounding countries.

In 2011, we organized a roundtable discussion

between the MACC and selected senior

management businesspeople in the expat

community so they could discuss the issues

directly with the people charged with improving

the situation. This exercise proved most fruitful and

provided further insights into expats’ thinking onthe subject. It also gave rise to suggestions

from the expat community on ways to

tackle the problem.

We publish The Expat magazine to which

all resident expats can subscribe free of

charge. As such, it is a highly effective

channel for reaching the large expat

community here. We have carried numerous

stories about the efforts being made

to address the problem and have

encouraged expats to lend their

support.

Additional messages have beencarried on our website, www.ExpatGoMalaysia.com, which

is one of the most popular

websites for expats seeking

information about living and

working in Malaysia.

We remain confident in the

Government’s efforts to eradicate the

problem of corruption in Malaysia and

are delighted to continue supporting

their efforts, and those of the MACC.

The Expat Group Backs

Malaysia’s Anti-Corruption EffortsANDY DAVISON, CEO OF THE EXPAT GROUP, SPEAKS OF HIS COMPANY’S EFFORTS TO

INVOLVE THE EXPAT COMMUNITY IN THE FIGHT AGAINST CORRUPTION.

Documents

The Fight Against Corruption