Y I S L E

G R I T I A B
E T Transforming Malaysia
INTN-NEGOMAKE
NO U CAN RENCE TION! The Fight Against Corruption
YO DIFFE ORRUP INTERNATIONAL EDITION
A GHT C
FI

Reach us through...

facebook.com/sprm.benci.rasuah mysms.gov.my

nkracorruption.gov.my estk.sprm.gov.my

sprm.gov.my maca.sprm.gov.my/portal

Twitter SPRM

twitter.com/SPRMMalaysia ourdifferentview.com
Foreword Creating a Corruption-Free Malaysia

Selamat datang! A very warm dissemination of expertise and

welcome to those attending experience.
the 6th Annual IAACA General
Meeting and Conference. We To raise awareness of
are pleased to have you in international cooperation against
Malaysia as we work together
to fight corruption at all levels.
corruption, goals have been set
for fostering capacity–building MACC Background:
Transformation of Macc and
The Malaysian Government, for anti-corruption authorities
cognisant of the prevalence and improving law enforcement
of corruption and recognising skills for officials from member
the dangers of corruption to
economic growth, has set itself
states, based on networking as
well as the collective expertise Amendment of Law
the task of fighting corruption and resources of its membership.
by actively supporting the need
for international cooperation This Conference and General The Malaysian Anti-Corruption changing the name was to reflect more accurately
through the Malaysian Anti- Corruption used to be very Meeting should provide an Commission (MACC) began its operation officially the role of the Agency as an institute that was solely
Corruption Commission (MACC) domestic, very local, and usually opportunity for those who are not on January 1, 2009, replacing the Anti-Corruption responsible for the prevention of corruption.
with the resolution of creating a took the place of a simple cash only responsible for preventing Agency (ACA) Malaysia. It was established by
corruption-free country. payment which could be easily and controlling corruption, but legislation, namely the Malaysian Anti-Corruption In 2008, the Government and Parliament agreed
traced and identified. to all those who are increasingly Commission Act 2009 (Act 694). Prior to that, that the MACC be established in order to enhance
This General Meeting and concerned about the devastating efforts to combat corruption were formally carried the effectiveness and efficiency of nationwide
Conference is an important event Today, it has gone far beyond this effects of corruption and equally out by a small unit under the Prime Minister’s anti-corruption efforts, as well as to improve the
in the ongoing effort to combat with the progress in Information convinced that it is now time Department which handled corruption-prevention perception of independence and transparency of
corruption. I am pleased that Technology. The cross-border to strengthen our collective activities mainly through lecturing. Concurrently, the functions of the Commission. The MACC is
Malaysia has undertaken the element is so normal today, and efforts against this practice. criminal investigations involving corruption were governed by a system of checks and balances to
formidable challenge related for this reason, the technical This conference will help us all being handled by the “Special Crimes” branch that ensure that the Commission operates in line with
to anti-corruption efforts. The assistance and information in looking for the best practices was set up within the Police Department while the national laws and the aspiration of society.
success we have in driving away exchange have become more and from the participating countries prosecution of corruption cases was conducted
corruption is directly related to more important and very much as we collectively address the by the Prosecution Division of the Law Ministry. The Commission commenced its operation on
the economic success we will needed today. As corruption issue of corruption. In view of the fact that anti-corruption efforts January 1, 2009 and was officially launched on
enjoy in the future. In particular, is now often tied to money were being carried out independently by different February 24, 2009, in which the five mechanisms
the IAACA is significant to the laundering and international With this note, I hope that agencies, the Government decided to consolidate established by law were officially enacted.
MACC as we strive to make crime syndicates, anti-corruption together we will put into action them under one roof known as the Anti-Corruption
improvements in the processes agencies cannot work alone. We what we have agreed upon and Agency (ACA). Vision
of detection, prevention, and must evolve. be committed to combating 1. To create a corruption-free Malaysian society
prosecution of corruption. corruption. Again, welcome to On July 1, 1973, the National Bureau of based on high spiritual and moral values.
As for the MACC – previously the Malaysia. It is our sincere hope Investigation Act was passed by Parliament and the 2. To make the MACC a professional anti-corruption
The IAACA General Meeting Anti-Corruption Agency (ACA) that your time here is enjoyable ACA’s official name was changed to the National agency par excellence.
and Conference will focus of Malaysia – we have been and productive. Bureau of Investigation (NBI). This change of name
on technical assistance and one of the founding members was for the purpose of giving more power to the Mission
information exchange, two of this association since 2005. Bureau, which not only handled cases related to the 1. To eradicate corruption, abuse of power, and
crucial areas for capacity- IAACA aims at facilitating the National Interest, but also represented the first malpractice in Malaysia.
building for all law enforcement implementation of UNCAC, time a department had been established by a legal 2. To concertedly and continuously strengthen
agencies seeking to identify and consolidating international Act. integrity and enhance expertise through human
eliminate corruption. cooperation to combat Dato’ Sri Abu Kassim bin resources development programs.
corruption, promoting measures Mohamed The name of this department then reverted back
In my nearly 30 years of fighting for prevention of corruption in Chief Commissioner to the original name, ACA, on May 13, 1982, when Objective
corruption, I can say the patterns both public and private sectors, Malaysian Anti-Corruption the Anti-Corruption Agency Act 1982 was passed by 1. To continually address and eliminate all forms of
have changed tremendously. and facilitating the exchange and Commission (MACC) Parliament and put into force. The main objective in corruption, abuse of power, and malpractice.  

2 3
Creating a Corruption-Free Malaysia

6th Annual IAACA

General Meeting and
Conference 2012

Photo courtesy of Kuala lumpur convention Centre

Fighting corruption is now an essential part of
the government’s ambitious plans to transform
“A major milestone
the nation and accelerate economic growth. for Malaysia, moving
Spurred by its determination to achieve the
goal of becoming a high-income nation by the forward for MACC…”
year 2020, the Malaysian government made
fighting corruption a priority which needs to raising awareness of international cooperation
be immediately addressed by both the public against corruption, fostering capacity-building
and private sectors. Various initiatives have for anti-corruption authorities, and improving
been implemented to encourage integrity and law enforcement skills, based on networking
transparency as part of the National Key Result and drawing on the collective expertise of its
Areas (NKRA) goal of fighting corruption under members. As of today, the IAACA has launched
the Government Transformation Programme global anti-corruption resources and a directory
(GTP). Seeing the effectiveness of its anti-graft of anti-corruption authorities, collected and
campaigns, the government seeks now to share systematised practices of anti- corruption
the various techniques with countries abroad. authorities operating under different legal systems Business Practices.” Another Workshop deals Attorney General, Swiss Federation; Dato’ Seri
for its members’ usage. with “International Recovery of Ill-Gotten Assets: Idris Jala, CEO of PEMANDU and Minister at
The IAACA, which Malaysia has the honour of Case Histories,” while the final Workshop is the Prime Minister’s Office; Martin Kreutner,
hosting this year, is an international organisation For this year’s conference, a wide range of topics entitled “The Role of Prosecutors and Judiciary in President of European Partners Against
with the objective of implementing the United will be discussed during the six Plenary Sessions Combating Corruption.” Corruption Network (EPAC/EACN) and Chair of
Nations Convention Against Corruption (UNCAC) and four Workshops, which will consist of two International Steering Committee, International
and has prioritised the importance of technical Parallel Workshops each. The Plenary Sessions The Conference will be opened by the Prime Anti-Corruption Academy (IACA), Republic of
assistance and information exchange from are entitled “The Need for Intelligence-Led Minister of Malaysia and will welcome speakers Austria; and Giovanni Kessler, Director General,
its establishment in 2006. The Malaysian Policing in The Investigation of Corrupt Practices,” from all around the world. The closing ceremony European Anti Fraud Office (OLAF). There will also
Anti-Corruption Commission (MACC) Chief “Denial of Safe Havens: Core Elements and will then be officiated by the Deputy Prime be speakers from INTERPOL, the international
Commissioner Dato’ Sri Abu Kassim Mohamed Strategies,” “Income and Asset Declarations,” Minister of Malaysia. Highlighted speakers police organisation, and other prominent
was appointed as one of the executive committee “Effective Mechanisms for Capacity-Building include Dato’ Sri Abu Kassim Mohamed, member speakers from member countries.
members of the IAACA, a platform seen as a Through Technical Assistance,” “Workshop of the Executive Commitee of IAACA and Chief
golden opportunity for national anti-corruption Reports and General Discussion,” and “Adoption Commissioner of the MACC; Dimitri Vlassis, A total of 1,000 participants from 120 different
authorities to discuss groundbreaking stratagem. of Conclusions and Recommendations: The Kuala Chief of Corruption and Economic Crime Branch, countries are expected to participate in this
Lumpur Declaration.” Division for Treaty Affairs, United Nations Office Conference and General Meeting, and the
The IAACA – headed by president Professor Cao on Drugs and Crime (UNODC); The Honourable theme for this year is “Technical Assistance and
Jianming, Prosecutor General of the Supreme The first Workshop is entitled “Proactive Tan Sri Gani Patail, Attorney General, Attorney Information Exchange.” The Conference will be
People’s Procuratorate, People’s Republic of Investigation: Staying Ahead”, while the second General’s Chambers Malaysia; Patrick Moulette, an ideal platform for anti-corruption practitioners
China – has successfully hosted a series of Annual Workshop is titled “Performance, Accountability, Head of Anti Corruption Division (OECD); Maria to exchange ideas, best practices, and successful
Conferences and General Meetings worldwide, and Integrity in Government Administrative and Schnebli Federal Prosecutor, Office of the methods.

4 5
Creating a Corruption-Free Malaysia

MACC: Transparency and Accountability

Five independent entities work together
as a check-and-balance mechanism Government Transformation
The Malaysian Anti-Corruption Commission
(MACC) is an organisation created solely for the
executing its obligations are met. The idea is to
create and maintain a positive public perception Programme (GTP)
purpose of eradicating corruption. Corruption of the MACC, and the government facilitates their
takes many forms but, according to the Stanford efforts in obtaining public support and cooperation As part of its bold “Vision 2020” plan, whereby were selected to develop the NKRAs. A focused
Encyclopedia of Philosophy, the most accurate in combating corruption, abuse of power, and Malaysia aspires to become a fully developed, high- list of projects and initiatives for each NKRA was
definition of corruption is “the abuse of power by a malpractices. income nation by 2020, it has set out a number of developed to ensure that measurable results for
public official for private gain.” key initiatives to meet that challenge. Among the specific targets could be achieved.
One of the five bodies of of the “check and balance most wide-reaching is the initiative to transform
Let’s take the term “abuse of power” as an mechanism” is the Anti-Corruption Advisory Board the very government of the country. The NKRAs are the responsibility of each relevant
example. An abuse of power can take many forms: (ACAB), which was set up by the provision of law ministry, and the Performance Delivery and
accepting bribes, accepting gifts, manipulating under section 13 of the Malaysian Anti-Corruption The Government Transformation Programme (GTP) Management Unit (PEMANDU) was initiated to
others for one’s own benefit and many others all Commission Act 2009 (Act 649) and came into is an ambitious, broad-based initiative aimed monitor and measure these achievements. The
constitute an abuse of power. Why does it happen? being at the same time as the MACC. at addressing key areas of concern to society NKRAs and its detailed targets were made public
In most cases, those who are caught usually have while supporting Malaysia’s transformation into a with the publishing of the GTP Roadmap making it
the same answer: greed. The people of Malaysia are the priority in the work developed and high-income nation as per the goals transparent to Malaysians.
of the ACAB, as it represents the public and strives set forth in Vision 2020. In line with “1Malaysia
The Prime Minister of Malaysia, Y. Bhg Dato’ Sri on their behalf to ensure that the MACC adheres – People First, Performance Now,” the GTP is Following the first year in implementation, a
Najib Bin Tun Haji Abdul Razak, recently attended the to its intended purpose, working and acting as focused on: majority of the NKRAs achieved more than 90% of
Certified Integrity Officer Program and stated that the public’s eyes and voice. Sadly, only a small • Identifying and addressing the relevant their respective targets; these results were made
the government refuses to back down in its efforts percentage of the general public are aware of the priorities that matter most to the people; and available via the GTP Annual Report 2010.
to eradicate corruption, saying, “Corruption is the existence and purpose of the ACAB, as the means • Delivering and sustaining fundamental
country’s number one enemy.” He also stressed that of educating the public on this matter is limited changes on a nationwide basis. The transparency is a testament to Malaysia’s move
words alone are not enough to combat corruption; to government websites and portals. It is vital to in a new direction to inject more accountability
it is a serious matter and the challenge is enormous. spread this information and educate more people The Prime Minister identified seven National and growth into its environment. GTP measures
In line with this, the government stepped up its on the ACAB’s existence and purpose. Key Results Areas (NKRAs, see below) following will be implemented to ensure a strong foundation
approach to combating corruption, establishing the months of evaluating the people’s expectations is laid for the transformation of Malaysia into a
Malaysian Anti–Corruption Commission (formerly Perhaps most importantly, the ACAB is bolstered by of government and the most pressing issues progressive, high-income nation.
the Anti-Corruption Agency) in 2009 along with five its sister Committees and Panels, each serving in a
free entities, comprised of 42 officials elected by the check and balance capacity, and each contributing
people, that serve and act on behalf of the public to to the transparency and accountability of the
ensure that the MACC and country are corruption-free. MACC. These bodies include a Special Committee National Key Results Areas (NKRAs)
on Corruption, a Complaints Committee, an
So how does the Commission operate to eradicate Operations Review Panel, and a Consultation and
corruption? The principle of the MACC is to act Corruption Prevention Panel.
without favour, and to combat the country’s number
one enemy by attacking it from all angles, and the Finally, to further boost the public’s belief
commission is built upon trust and faith as it carries that corruption is being treated seriously, the
out the duties necessary to eradicate corruption. The government has announced that it will be
MACC is placed under five external bodies that all increasing the workforce of the MACC, looking to
offer supervision – this is known as the “check and boost the intake of workers by 150 people each
balance mechanism” – as it performs its function year. It is hoped that increased awareness of the
and roles to ensure that the public’s expectations purpose and existence of the MACC will attract
towards the commission’s independence, efficiency, more people to join in the fight to eradicate
effectiveness, transparency, and accountability in corruption.

6 7
Creating a Corruption-Free Malaysia

NKRA INITIATIVES - SUCCESS STORIES NKRA INITIATIVES - SUCCESS STORIES

CORE INITIATIVES ACHIEVEMENTS INITIATIVES IN PROGRESS status

1 Establishment of
Compliance Units in Key
Enforcement Agencies
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,
1 Central Agency to
Manage Confiscated
Assets (CAMCORP)
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.
reduce bureaucracy, and conduct integrity testing on officers.

2 Parameter of
Support Letters
Circular by MAMPU issued on 8 March 2010 as guidance for civil
servants to deal with attempts to influence their decisions.
2 Mandatory training for
procurement officers
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.
3 Disclose details of all MyProcurement portal launched on 1 April 2010 as a database

3
government procurement for government procurement listing companies awarded Develop a centralized Two accountable officers have been given an ID to access
and privatization tender and tender price. MyPartnership portal launched on 25
database for declaration the database. Moving forward, access to asset declaration
contracts September 2010 disclosing information on privatization and
of assets at MACC for MPs.
procurement procedures.

4
Increase public
awareness on public
Pilot project completed by NKRA, compiling initiatives
from ministries and agencies on public service delivery 4 Revamp on political
financing
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
service delivery system/ transformation and were distributed to the public and also
change in laws, policies, announced through radio stations using local dialect of each individual’s.
and procedure respective state. ii. Fund donated must be recorded and issued a receipt.
iii. Party’s account is subject to audit.

5
Zero-tolerance Act came into force Dec 15, 2010. Five key enforcement
policy supported by
Whistleblower Protection
agencies, i.e., MACC, RMP, RTD, Immigration, and Customs now
have Whistleblower Guidelines, SOP, and reporting mechanisms 5 Hot Job Rotation Already implemented in the key enforcement agencies on
a quarterly reporting basis. Ongoing initiative, enforced
framework and serve as a model to other agencies. according to findings and research by Compliance Unit on
‘Hot Job,’ ‘Hot Spot,’ and ‘Hot Staff.’

6 Completion of Corruption
Case Trials within one
year
14 Special Session Corruption Courts established throughout
Malaysia, coming into operation on 16 February 2011 to speed
up trials and clear backlogged cases. 6 Review the
Procurement Price
A module implemented by MOF for the public to review past
procurement prices by ministries and agencies.
Negotiation process

7 “Name and Shame” Established on MACC website www.sprm.gov.my on 4 March

offender database 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
7 Stiffer punishment for
corruption offenders
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
three years. in progress by JPA.

8 Recognition to civil
servants who reports on
corrupt practice
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
8 Reduce bureaucracy 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
Secretary General and came into force on 1 Jun 2011.
timely.

9
Implementation of Ministry of Finance issued a circular on 8 March 2010 consisting
Integrity Pact of guidelines on the implementation of and integrity pact
covering all government contracts.
9 Reduce discretion
through automation
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.

8 9
Creating a Corruption-Free Malaysia

MACC
Anti-Corruption
Making an Secretariat Dato’ Sutinah Sutan, Deputy Chief Commissioner

Impact
(Prevention), MACC.

The Malaysian Anti-Corruption Commission 1) UNIMAP

(MACC) plays a vital role in Malaysia. This agency 2) Universiti Utara Malaysia (UUM)
Success in anti-corruption efforts is a result of is tasked with the role of preventing and averting 3) Universiti Sains Malaysia (USM)
the actual investigations as well as the effective the corruption and the abuse of power in Malaysia, 4) Universiti Pendidikan Sultan Idris (UPSI)
implementation of the investigation process. This both in the public and private sectors. Promoting 5) Universiti Teknologi Mara (UiTM)
process requires cooperation from the public, the mission, vision, and objectives of MACC is 6) Universiti Kebangsaan Malaysia (UKM)
especially in providing quality information. In not an easy task as it faces a number of potential 7) Universiti Putra Malaysia (UPM)
addition, members of the public should be willing problems. MACC is continually seeking ways 8) International Islamic University Malaysia (UIAM)
to testify either during the investigation or the to achieve its goals within the confines of both 9) Universiti Pertahanan Nasional Malaysia (UPNM)
prosecution of a case and also have the awareness Malaysian law and the specific MACC Act that gives 10) Universiti Sains Islam Malaysia (USIM)
to report acts of corruption. the Commission its power. 11) Universiti Teknikal Malaysia Melaka (UTEM)
12) Universiti Teknologi Malaysia (UTM)
When conducting an investigation (and even in its One of the most challenging obstacles to overcome 13) Universiti Malaysia Sabah (UMS)
own operations), the MACC adopts two approaches, is building public confidence in MACC in a society 14) Universiti Malaysia Terengganu (UMT)
namely the proactive-based investigation and the that is understandably cynical about purported 15) Universiti Malaysia Kelantan (UMK)
intelligence-based investigation. efforts to fight corruption. Perhaps one effective 16) Universiti Sultan Zainal Abidin (UNISZA)
Success of Prosecution Cases ways to achieve this is through education, in order 17) Universiti Malaysia Pahang (UMP)
The proactive-based investigation has been In 2011, a total of 472 persons were convicted to reach younger generations and lay a foundation 18) Universiti Tun Hussein Onn Malaysia (UTHM)
successful in revealing syndicate-based criminal on corruption offences such as bribery, for a society free from bribery and graft, and
activities apart from the norm of arresting and misappropriation, and abuse of power. Some of a society which understands and supports the All of these universities are working in partnership
indicting those involved in acts of corruption. these cases caught the attention of the public as government’s efforts to do this. with MACC to promote positive values in
the sentences had reflected the seriousness of the educational society which falls in line with MACC’s
The intelligence-based investigation typically crime of corruption. The joint force of MACC, known as a Anti- mission, vision, and objectives that focuses
centres on following up leads and investigating Corruption Secretariat and the educational towards a constructive and productive Malaysian
reports of individual abuse. Statistics on Prosecution Cases institutions is put forward as a way to society free from bribery, corruption, and abuse
In 2011, a total of 263 persons were prosecuted communicate the positive value of anti-corruption of power.
However, acts by individuals are rarely the in the courts of which 80 (30%) were public sector efforts among youth as they are in their
sole reason corruption occurs. Weaknesses in officials, 141 (54%) members of the public, 41 adolescent and early adult years. Youth is in the IPG (English: Teachers Education Institute) is a
the governance (systems and procedures) of (15%) from the private sector, and one politician. stage of early period of development and at this comprehensive,structured, and well-designed
an organisation uncovered through operation The public sector category further highlights two stage, SPR aims to develop and strengthen the programme serving as an outreach method to
activities is a contributory factor resulting in the persons (3%) from the top management level, 17 positive values and qualities among the young reach students and to teach them the importance
inefficiencies of employees engaging in corrupt (21%) from management and professional levels, in our community. Therefore, the prevalence of of eradicating corruption. The programme is
practices such as allowing room for bribery or and the remaining 61 (76%) from the supporting corruption and abuse of power can be reduced designed to plant the seed of integrity from early
abuse of power. This can, and often does, result in staff level. in the future. Malaysia will be a country that childhood through education syllabuses and
losses and damages to the organisation. possesses the dignity and honour befitting a courses of study. So far, 27 IPGs are involved
The establishment of the 14 Special Courts for country striving to be labeled as world-class. in the programme, parallel with the Education
In 2011, the MACC experienced successes Corruption on 16 February 2011, allowed for Transformation Programme that was launched by
through continuous, integrated, and well-planned much more timely processing of cases related This collaborative effort was officially launched Prime Minister in early September. Each of these
enforcement actions that required a collective effort to corruption, and this resulted in a significant on 6 December 2007 and among the educational initiatives functions collaboratively in MACC’s
in the implementation of the MACC’s operations increase in the statistics on disposition of institutions that have joined force with MACC/SPR ongoing effort to combat corruption – in this case,
and investigations. corruption cases as compared to 2010. are as follows: even before it begins!

10 11
Creating a Corruption-Free Malaysia

Frequently Asked Questions: Corporate Integrity Pledge and

Anti-Corruption Principles for Corporations in Malaysia (2011)
1. What is the Pledge? and internal systems and processes. Thus, it helps a
The Corporate Integrity Pledge is a document that allows company to make a first step toward creating the means
a company to make a commitment to uphold the Anti- to reduce corruption and increase chances of detecting it.
Corruption Principles for Corporations in Malaysia. By It does not change the existing laws or law enforcement
signing the pledge, a company is making a declaration that infrastructure relating to corruption.
it will not commit corrupt acts, will work toward creating
a business environment that is free from corruption, and 6. What is the Corporate Integrity Agreement?
will uphold the Anti-Corruption Principles for Corporations For companies that want to begin incorporating an MACA – the world’s first anti corruption academy. International Anti-Corruption Acadamy (IACA)
in Malaysia. anti-corruption policy in its interactions with business Chairman Martin Kreutner.
partners, the Corporate Integrity Agreement is a good way
2. How do I execute the Pledge? to start extending your commitment to them. In addition
The soft copy of the Pledge is available for download at
the Malaysian Institute of Integrity website at www.iim.
to your declaration of your commitment via the Pledge,
you can enter into a bilateral commitment with your Anti-Corruption Efforts Strengthened
business counterpart, whether it be a vendor, supplier,
Through Education
com.my. You may use that to create an execution copy.
The standard Pledge document provides for execution JV partner or any other counterpart to operate using
by company seal, but you may execute in any other the same Principles. This agreement can be entered into
manner as long as it is a valid method of execution for independently or incorporated into your existing contract.
such a document by your company, under the relevant The Malaysia Anti-Corruption Academy (MACA) • To organize the capacity and capability
constituent documents and laws pertaining to your 7. What is the effect of signing a Corporate Integrity was established in 2003 with the idea that the development programmes for global community.
company. Agreement?
The form of the Corporate Integrity Agreement provided is
establishment of the MACA would enhance the
3. What is the effect of signing the Pledge? a tool for companies to help them agree that it is a policy competency and professionalism of the Anti- The overall mission of the MACA includes the
The effect of this is twofold: first, a company will be to engage in clean business relations with one another Corruption Agency (ACA) officers. The ACA is now, following:
making a clear stand, in writing, on how it operates, and and the adherence to the terms of the agreement will not of course, known as the Malaysian Anti-Corruption • To lead dynamic, progressive and continuous
this will serve as guidance to the company in its business be monitored or tracked by any regulatory authority or
interactions. Second, a company can use this Pledge to agency. Once entered into, the terms of the agreement
Commission (MACC), but the goal of the MACA development of MACC’s human capital;
set itself apart from its peers by demonstrating to its are between the two signatories and are given the same remains the same: Enhancing and strengthening • To increase the capacity and capability of public
stakeholders that its business operations do not include force as with any other contractual term. Any sanctions or anti-corruption efforts through education. and private sectors in preventing corruption
any hidden risks or costs that are associated with corrupt provisions for breach of those terms, if any, will be a matter through smart partnerships; and
activities. to be determined by the parties in their actual contractual
documentation.
Many international institutions and organizations • To strengthen strategic partnership network at
4. Is adherence to the Pledge monitored? have agreed to cooperate with Malaysia in the international level through anti-corruption
The Pledge is a tool to be used by companies and is not As to September 2012 a total of 131 companies and developing anti-corruption programmes, including training programmes.
a regulatory instrument of any sort. Breach of the pledge corporate organisation have signed the pledge. Amongst conducting the courses, trainings, seminars, and
– e.g., if a signatory company is later found to have been the pledge signatories are Chamber of Commerce and
complicit in corruption – will not carry any legal sanction Business chambers such as the Malaysian Business
workshops annually that will cater to the Asia- According to International Anti-Corruption Acadamy
under the pledge on its own. Instead, the Pledge will be Chambers (DPMM), The Associated Chinese Chambers Pacific region. This is made possible through the (IACA) Chairman Martin Kreutner, the IACA is
given force through self-reporting by the company, to of Commerce and Industry of Malaysia ( ACCIM), bilateral and multilateral agreements with other expected to sign a memorandum of understanding
meet the demands of its stakeholders, in line with the Malaysian Associated Indian Chamber of Commerce and enforcement agencies in the region. with MACC in order to establish a framework of
model adopted under the 10th Principle of the UN Global Industry (MAICCI), Malaysian International Chamber Of
Compact. Adherence to the Pledge is therefore monitored Commerce & Industry (MICCI) , Federation Of Malaysian
cooperation for its first International Masters
to the same extent that other non-mandated disclosures Manufacturers (FMM). The MACA has a stated vision of being a world-class Programme in Anti-Corruption. Parts of the
by any company to its stakeholders are monitored – centre of education and excellence in anti-corruption. programme will be conducted at the Malaysia Anti-
through scrutiny and demands of the stakeholders. Accordingly, the MACA objectives are as follows: Corruption Academy (MACA) in Kuala Lumpur, the
How do I get included on the • To enhance the accountability and integrity of world’s first anti-corruption academy.
A system is being developed to eventually enable more list of signatories?
convenient means of cross-checking whether a signatory MACC officers through elective and continuous
Companies that seek to be included on the list of
has in fact been found to have conducted activities that signatories carried on the website can inform Malaysian training programmes; The 24-month Masters Programme, which is
are contrary to the terms of the Pledge. Institute of Integrity by depositing a copy of the executed • To train human capital in public sectors to optimise suitable for anti-corruption professionals, police
5. What happens if I know there is corruption at a
pledge with them at the address below, through post, the capacity and capability of anti-corruption; officers, judges, and other enforcement agency
fax or email: • To increase anti-corruption training programmes officers, will be launched on 9 December 2012 to
company? Does this Pledge help me?
You should report any instances of breaches of laws or Director, Private Sector, Level 7, Menara Integriti, through smart partnership with the private coincide with World Anti-Corruption Day. It is the
regulations to the relevant regulator, and report any Persiaran Duta, Off Jalan Duta, 50480 Kuala Lumpur.
Tel: 03-62092061/62/66 Fax: 03-62092067
sectors; first full-fledged programme on global corruption
corruption to the Malaysian Anti-Corruption Commission
(you can call their toll-free hotline at 1-800-88-6000). This Email: swasta@iim.com.my • To expand collaboration and cooperation with studies. The programme addresses corruption from
Pledge is an additional tool for companies, to encourage website: www.iim.com.my enforcement agencies, training institutions, and various perspectives, and will involve participants
them to work on their own anti-corruption programme international bodies; and from all five continents and all regions.

12 13
Challenges For MACC Officers

Han Chee Rull

Deputy Commissioner, Putrajaya MACC
Headquarters Senior Deputy Director

On his job scope: illegal fees to certain lawyers. But detailed report. Clearly, had we
PROFILE “Basically, I oversee
investigations at the
the main crux of the investigation
was a payment of around RM76.4
received this report earlier, our
investigation would have been so
SNAPSHOTS: Headquarters level, particularly
monitoring high-profile cases.
million purportedly made to a
company in Japan in connection
much easier. That was the major
hurdle we had faced back then as
I also scrutinise Investigation with the beam and section mill we were trying to do the auditors’
Dato’ Hj Zakaria Papers (IPs) for high-profile plant project undertaken by job and our own investigations at
cases that are submitted by the the same time.
bin Hj Jaffar State. My job scope also requires
Perwaja in Gurun, Kedah. The
beam and mill section project
me to have discussions with was undertaken by one of the Another difficulty that we had
Deputy Chief Commissioner
the Senior Federal Counsels for major companies under Perwaja faced was gathering evidence. Lots
(Management and Professional),
high-profile cases. Besides this, and a Japanese consortium was of evidence was required from
MACC
another main task of my job is supposed to provide technical overseas witnesses, particularly
to table findings of investigation assistance while another was the those from Japan. There was no
He served for more than 25 positions in MACC per year. this issue, it is important that before our Operation Review equipment supplier. legal framework for mutual legal
years in the investigative Additionally, for the first time decisive action be taken, and this Panel for consideration – assistance back then. So, we had
field, and now serves as the since the establishment of the has been the case as stronger whether they find it necessary For this case, we should a multitude of problems when
Deputy Chief Commissioner MACC, the government approved implementation of disciplinary to review decisions reached by have allowed auditors like we were required to investigate
(Management and Professional), a substantial allocation of action has taken hold. the Public Prosecutors or they PricewaterhouseCoopers (PwC) overseas.
and his job scope includes funding for new projects, such endorse the decision. I hope for to go into the case first and
improving the overall as the construction of new office To that end, the establishment more understanding from the tell us from where the money Most of the difficulties were
professionalism of the MACC buildings in several states, each of the Excellent Leadership public and urge them not to have siphoned off and what the resolved through the use of
in terms of care management, of which is purpose-built for the Centre of the Academy of Anti- unreasonably high expectations other malpractices detected the Internet. At that time, the
financial and human resource goal of detecting, preventing, Corruption is one mechanism as MACC can only do things were. What happened, however, Internet was still relatively
administration, and control of and prosecuting corruption. utilised to train and improve within the law. The Commission was that we went in first. Had new. People did not usually
security matters involving MACC MACC officers. This measure will can only proceed if there is we let the auditors go in first, use it for investigations. So, I
premises. Perhaps the main challenge ensure officers have extensive evidence for a particular case. I and then investigated on what made use of the Internet and
faced by the Deputy Chief knowledge and special expertise hope the IAACA participants and they presented to us, our job did a lot of searches. In fact,
A major challenge inherent in Commissioner is to ensure in their respective fields of delegates can learn more about would have been much easier. I I communicated with various
this position is handling and that all MACC officers comply work and it is hoped that by MACC during the upcoming remembered we had to spend parties overseas as well as the
managing multiple aspects of with the department’s code of enhancing and strengthening Conference just as MACC would months trying to trace the history Swiss authorities through the
the concept of professionalism ethics. Discipline is a priority in training, increased compliance like to learn more from them.” and background of the Perwaja Internet. Moreover, as Hong
to ensure that real organizational the organization, and ensuring with department guidelines will   Group, such as how they got Kong was a Commonwealth
change is noticeable. It is crucial compliance with ethical follow suit. On Perwaja Steel: involved in this steelmaking country, they shared the same
that all staff work together to guidelines is of paramount “The Perwaja case started back in business, the rationale of their system with us and we had a
improve overall integrity and importance, and of course, The Deputy Chief Commissioner 1999 when the group suffered a various projects, as well as the history of a working relationship
provides the necessary training excellence and professionalism hopes that the public will come loss of RM2.85 million. There was roles and responsibilities of with them. Thus, it was not a
appropriate to the current in disciplinary matters involving to understand the burden a huge public outcry and the Anti- the board of directors. Had we problem. But for countries like
needs in terms of the needs of MACC officers is expected to be shouldered by MACC in the Corruption Agency (ACA), as it asked PwC to prepare a report Japan, we had to approach
the investigation of cases of upheld at all times. pursuit of eradicating corruption was known then, was required to on this earlier, it would have the Japanese embassy here to
corruption and mismanagement. in Malaysia, and also hopes investigate the case. There were been better. A few months after establish contact. That was how
Challenges also presented Managing disciplinary matters for that the people will support the a number of focus areas in our our investigations, PwC was I got it going, and basically, that
themselves when the officers who violate department MACC as it fights corruption for investigation such as awarding commissioned to prepare a was how we solved the problem.
government approved an regulations has proven to be a the betterment of society and of contracts to companies and report on Perwaja. Subsequently, Times have definitely changed in
allocation of 150 new personnel challenge, as well. To address progress of the nation. payment of large amount of they came up with a very the last decade!”

14 15
Challenges For MACC Officers

Tan Kang Sai

Selangor MACC State Deputy Director Chief
Senior Assistant Commissioner

Junipah Wandi “Currently, I am the Selangor perceptions can be easily and

rapidly formed. Although we
MACC Deputy State Director in
Deputy Director of Inspection and Consultation Division, MACC charge of operations involving fulfill our duties according to
Investigations, Intelligence, the law, we will not be able to
Job scope have very good systems and that we use as a tool to help the Prosecution, and Records accomplish the objectives of our
“Basically my job scope, based procedures in place, and at the organization review its systems Management. That is my main job if public perception continues
on provisions of Seksyen 7 (c) same time, ensure the system and procedures, and at the job. In addition to that, I also to be low. My hope for us is I believe we also need to engage
(d) and (e), MACC Act 2009, and procedures are followed same time, they can use this assist my Director in managing to be more transparent in our in grassroots-style meetings
consists of giving consultation by the staff. An effort must resource to enhance their system the overall workflow of Selangor decision making. However, it is more often to help us understand
to public bodies, organizations, also be made to monitor the and procedures to pluck in the MACC involving Prevention and not for MACC officers to reveal what the public wants. My hope
and private companies on how effectiveness of the systems and loophole for corruption and Administrative Work. I must the process of investigations as it for all IAACA participants is for
to close loopholes and also to procedures because loopholes malpractices that can be happen admit that I face challenges in is forbidden under the MACC Act. them to make use of their time
relay opportunities on combating in established procedures can in the organization.” improving the public perception Instead, the five independent here to share their experiences
corruption throughout system create opportunities for abuse by on corruption issues. committee/panel, represented and exchange knowledge and
control.” those who lack integrity.” Hope by the public, should be used information with one another.
“I hope the public will come to “Previously, the Internet was as a platform to explain the
Challenges Overcoming Obstacles perceive MACC as a free and not so widespread and we did processes of high-profile cases. “Through mutual cooperation
“We have to convince the “We have a new approach we independent body committed to not have to deal with bloggers For this, however, we need to and networking, we can assist
head of the organization to call Corruption Risk Management combating corruption.” and the new media. These days, change in accordance with time. each other in combating graft.”

P. Gunalan A/L Perumal

Putrajaya MACC Intelligence Officer

“I am attached to the I say this because corruption of a prospective witness.

Intelligence Division at the is increasingly a white-collar Secondly, a good negotiator
Putrajaya MACC Headquarters. crime. Nowadays, criminals is needed to persuade the
Westmoreland Ajom My job scope involves detecting who deal with corruption are witness to cooperate. Thus,
and investigating any suspected sophisticated and very wise. the Commission needs to
Senior Superintendent at Forensic Accounting Unit, offence under the MACC Act, any Other challenges include gaining invest more in developing
Investigation Division suspected attempt to commit collaboration from witnesses, human capital to combat graft
any offence under the MACC Act, particularly foreigners as key effectively.
Job Scope Challenges to Seksyen 27 of the MACC Act or any suspected conspiracy to witnesses in solving complex
“To assist an Investigation “In my 14 years’ experience and told him that it would be an commit any offence under the cases. Many witnesses will flee  “My hope for public perception
Officer for an IPs related to with MACC, there has been only offence for him not to testify in MACC Act. or do not want to cooperate and towards the MACC is very simple.
Financial Investigation by one case in which I faced an the case.” will hide themselves. So, how do The public must see that the
providing an expert opinion on uncooperative witness against “Since working with the MACC, you locate and persuade such Commission is just enforcing
financial or by using accounting the accused, which happened Hope I have gone through a lot of witnesses? Firstly, I use contacts the law accordingly. I strongly
as evidence to aid anti- to be his boss. In order to solve “The public should have faith in problems and challenges. The from other law enforcement hope that the public would work
corruption prosecution as an the problem, and convince us. We are genuinely working to MACC cases are mostly difficult departments or foreign agencies together with the Commission to
expert witness in accountancy.” him to testify, I referred him improve things.” to resolve in the short term. to identify or detect the location fight and eradicate corruption.”

16 17
Creating a Corruption-Free Malaysia

The Expat Group Backs

Malaysia’s Anti-Corruption Efforts
Andy Davison, CEO of The Expat Group, speaks of his company’s efforts to
involve the expat community in the fight against corruption.

T
here is no doubt that while eliminating The survey revealed that most expats were
corruption may be the impossible dream, concerned about corruption in Malaysia. They felt it
keeping it to a minimum is critically important was fairly widespread in Malaysia, although not all
as Malaysia seeks to improve the prosperity of its of them encountered it in their day-to-day business
citizens. The prevalence of corruption is always a dealings. Most expats felt that the Government’s
factor which discourages major companies from efforts would produce results, though they thought
investing in a country. it would take time to achieve these. On the positive
side, those who had experienced living and working
Hong Kong and Singapore, which commenced in other Asian countries felt the situation was better
their efforts to minimize corrupt practices back in in Malaysia than in other surrounding countries.
the 1970s, have seen the benefit with significant
increases in foreign investment. In 2011, we organized a roundtable discussion
between the MACC and selected senior
Malaysia may have started the battle somewhat management businesspeople in the expat
later but their commitment appears to be just as community so they could discuss the issues
strong. Involving the expat community is important directly with the people charged with improving
because in many cases they can directly assist the the situation. This exercise proved most fruitful and
efforts, but equally as important, these expats provided further insights into expats’ thinking on
can help spread the word that the country the subject. It also gave rise to suggestions
is committed to the process. from the expat community on ways to
tackle the problem.
The Expat Group has been keen to
support the Malaysian Government’s We publish The Expat magazine to which
efforts to fight corruption, and has all resident expats can subscribe free of
signed the Corporate Integrity Pledge, charge. As such, it is a highly effective
as well. During the last two years, channel for reaching the large expat
we have worked closely with community here. We have carried numerous
the various people charged stories about the efforts being made
with leading the effort to address the problem and have
to improve the situation encouraged expats to lend their
and find ways to support support.
their efforts and involve
the expat community. Our Additional messages have been
support has taken several carried on our website, www.
forms. ExpatGoMalaysia.com, which
is one of the most popular
In 2010, we conducted websites for expats seeking
research among resident information about living and
expats to gather their views on working in Malaysia.
corruption in Malaysia as well
as suggestions for combating We remain confident in the
it. The findings were shared Government’s efforts to eradicate the
with the Government and the problem of corruption in Malaysia and
Malaysia Anti-Corruption are delighted to continue supporting
Commission (MACC). their efforts, and those of the MACC.

18 19