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Friday, 9 December 2016

International Anti-Corruption Day, Work with MACC to fight corruption, Malaysians urged

United against corruption for development, peace and security

Aerial group photo of staff in Geneva simulating the Sustainable Development Goals logo on United Nations Staff Day. UN Photo/Jean-Marc Ferré. "On International Anti-corruption Day, let us reaffirm our commitment to ending the deceit and dishonesty that threaten the 2030 Agenda and our efforts to achieve peace and prosperity for all on a healthy planet." — UN Secretary-General, Ban Ki-moon

Every year $1 trillion is paid in bribes while an estimated $2.6 trillion are stolen annually through corruption – a sum equivalent to more than 5 per cent of the global GDP. In developing countries, according to the United Nations Development Programme, funds lost to corruption are estimated at 10 times the amount of official development assistance.

Corruption is a serious crime that can undermine social and economic development in all societies. No country, region or community is immune. This year UNODC and UNDP have developed a joint global campaign, focusing on how corruption affects education, health, justice, democracy, prosperity and development.

The 2016 joint international campaign focuses on corruption as one of the biggest impediments to achieving the Sustainable Development Goals (SDGs).

what you can do.

Work with MACC to curb graft, Malaysians urged

Raising awareness: Dzulkifli (second from left) handing out caps, posters and leaflets to members of the public at the KLCC LRT station during MACC’s walkabout session held in conjunction with International Anti-Corruption Day.

KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has urged the public to work with the agency to curb graft and make the country a corruption-free nation within three years.

Its chief commissioner Datuk Dzulkifli Ahmad said efforts to combat corruption and abuse of power did not lie exclusively with MACC and should be supported by the society at large.

“Firstly, we must hate corruption. Secondly, we must reject corruption and thirdly, the people must cooperate with MACC to fight corruption and abuse of power,” he told pressmen yesterday during a MACC walkabout session held in conjunction with International Anti-Corruption Day.

Dzulkifli said he appreciated the support given by people regardless of age, race and religion because “corruption is detrimental to all layers of society”.

The MACC team and NGO volunteers distributed leaflets to RapidKL LRT passengers at 15 stations during the walkabout.

Among others, the leaflets stated that corrupt practices also included those who offered bribes to officials or made false claims for work or services done.

“If one does not report a corrupt practice, one is passively encouraging corruption and allowing the corrupt to walk free,” it said.

“Tax money and resources that are meant to build the country are being wasted or siphoned for personal gain, and the quality of goods and services provided would be poor.”

In Kota Baru, Bernama reported that at least three high-profile cases with losses worth millions of ringgit were being probed by Kelantan MACC.

State director Datuk Moh Samsudin Yusof said investigations were still in the early stages involving organisations, individuals and senior government officials.

“The cases are related to tampering with government revenue, hindering revenue collection, incurring government losses and carrying out development project without following the rules,” he told reporters after opening the state-level International Anti-Corruption Day celebration yesterday.

A total of 31 investigation papers have been opened in relation to complaints of corruption in the state this year.

By Loh Foon Fong The Star/ANN

MACC: Fight corruption with us

Commission urges public to be proactive

PUTRAJAYA: Drawing parallel to the Liverpool FC anthem You’ll Never Walk Alone, the Malaysian Anti-Corruption Commission (MACC) is calling upon the public to play a proactive role and work closely with them to nip all forms of corruption in the bud.

In saying that the fight against corruption was a never ending task, MACC deputy chief commissioner (prevention) Datuk Shamshun Baharin Mohd Jamil (pic) said the anti-graft body would continue to carry out its duties in accordance with the three key pillars – free, transparent and professional.

<< MACC deputy chief commissioner (prevention) Datuk Shamshun Baharin Mohd Jamil.

“Let me put on record that as long as there is a report, we will probe the alleged wrongdoer, and this includes politicians.

“We don’t need to refer to others or wait for the green light to start an investigation.

“As far as we are concerned, we will go after any shark or small fry in the public or private sector, regardless of their background, position or social status.

“Our target over the next three years is to clean up the public sector, particularly those involving enforcement authorities, local councils and government-linked companies,” he said in an interview in conjunction with the International Anti-Corruption Day today.

Shamshun Baharin said while it was impossible to totally eradicate corruption, the MACC would do all it could to cut down such unhealthy practices.

“Frankly, there is not a single country in the world with zero corruption.

“But our continuous anti-graft efforts have started to bear fruit and get strong public support.

“We have also received international recognition. Some countries have requested to sign MoUs to share our expertise,” he said, citing Bhutan, Bangladesh, Iran, Pakistan and Mongolia.

Shamshun Baharin said battling public perception was still its biggest challenge, and that the MACC was also trying hard to convince people to give information and lodge reports.

“Whistleblowers are worried about personal safety and that of their family members, so they choose to remain quiet.

“But this will permit wrongdoers to continue with their wicked ways for personal gain,” he said, adding that the Witness Protection Act 2009 and the Whistleblower Protection Act 2010 could be used to protect the identity of informers and keep them safe.

Shamshun Baharin said public expectation was high and that the people were scrutinising all cases, especially those involving big names and seizures, and alleging that the MACC was being selective.

“But they fail to realise that we only have investigative powers.

“Prosecution is solely in the hands of the Attorney-General while the courts decide on the verdict,” he said.

By Simon Khoo The Star/ANN

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Wednesday, 23 November 2016

Why we fail at corporate governance with corrupt officials?

https://en.wikipedia.org/wiki/Sabah_State_Water_Department_corruption_probe

Malaysia still suffers from corporate scandal after another, says Musa

PETALING JAYA: Malaysia is great at formulating legislation for corporate governance but lacks the ability to implement and enforce these, said former deputy prime minister Tun Musa Hitam (pic).

“As far as I can remember, Malaysia is the leading developing country that currently occupies the top half of the list in formulating legislation, rules and regulations for corporate governance.

“But when it comes to implementation and enforcement, we occupy the lower half of the list,” said Musa, who is also World Islamic Economic Forum chairman. Delivering his keynote address at the Women’s Institute of Management’s Conference on Integrity and Corporate Governance, Musa said that in the past, government and corporate leaders were required to attend a course on corporate governance.

“It is quite obvious that these efforts are to no avail and the programme seems to have been scrapped.

“After all our training, Malaysia still suffers one corporate scandal after another,” he said.

The country’s weakness in corporate governance lay in its inability to enforce the rules and was the major cause of its many scandals, he said.

Musa said that good governance extended to areas relating to corruption, abuse of power, accountability, application of corporate social responsibility (CSR), transparency and protecting shareholder interest.

“If you ensure transparency and accountability in decision making, apply CSR and care about shareholder interest, then you are practising good corporate governance,” he said.

Good corporate governance, Musa pointed out, could only happen if all the laws were implemented without fear or favour.

“This is most crucial for good corporate governance and it is up to the chairman and board of directors to administer this,” added Musa.

Another important ingredient was leadership with integrity, he said.

“Leadership by example produces good governance and in my experience, if this is practised, even the most influential person can be persuaded to act in the broader interest of the corporation and shareholders.” By Jo Timbuong The Star

Corporate governance – a shared responsibility

TUN Musa Hitam was spot on when he said at a conference on Monday that a company’s directors and managers were practising good corporate governance when they ensured transparency and accountability in decision making, applied corporate social responsibility, and cared about the shareholders’ interests.

These are indeed essential ingredients if we want our companies to be run well.

And Musa was right in pointing out that good corporate governance could only happen if the laws were implemented without fear or favour.

This matters because corporate governance thrives in an environment in which the rules are clear and robust, and the regulators are firm and consistent.

However, corporate governance is not just about complying with the letter of the law. It is also about directing and controlling a company through practices, structures and processes.

Many of these elements are voluntary; a thin line separates government oversight and the straightjacketing of business with an overkill of statutory prescriptions.

For example, most experts on corporate governance agree that the roles of chief executive officer and chairman of the board ought to be separated so as to avoid concentrating a lot of decision-making power in one person.

And yet, it is perfectly legal in Malaysia for an individual to wear these two hats at the same time. It is the same in some developed countries.

It remains a hot topic, but it is clear that most regulators continue to be reluctant to outlaw this practice of combining CEO and chairman duties.

The biggest challenge is to persuade company stewards to embrace the principles of corporate governance without being prodded by the authorities and their volumes of laws.

For this to happen, the directors and managers have to be convinced that good corporate governance adds significant value to their companies.

There are many studies that have concluded exactly that, but these findings mean little if there is still the perception that most people do not care about corporate governance.

Let us look at the listed companies, whose value is measured constantly in the stock exchange as investors buy and sell the companies’ shares.

On paper, a company with a poor track record in corporate governance would have trouble getting attention in the stock market.

And yet, we have frequently seen such companies at the centre of feeding frenzies sparked by speculation that the share prices will soar for whatever reason. This is not a great advertisement for corporate governance.

Nor is it encouraging that shareholder activism in Malaysia is limp. Many of those who own small amounts of shares in a company are often indifferent to how the company is performing, preferring instead to focus on the share price.

And when they do turn up at the shareholder meetings, it is seldom to engage with the board and management and to ask tough business questions.

The regulators and company stewards alone cannot push the corporate governance agenda.

Investors and other stakeholders too must show that they appreciate the fruits of good corporate governance, instead of complaining bitterly only after companies have collapsed and huge investments have gone down the drain. The Star Says

A-G: GLCs should adopt best practices

Praise and encouragement: Ambrin speaking during the WIM Conference on Integrity and Governance at the One World Hotel in Petaling Jaya.

“In theory, the country’s best practices could be easily adopted wholly or in part by most GLCs. But in reality this is not always the case as you can see from our audit findings with regard to the business performance and corporate governance of these GLCs.

“If guidelines are not being adhered to or given exemptions, it may severely compromise the governance and expose the companies to risk of fraud and corruption,” he said in a keynote address at the Women’s Institute of Management (WIM) conference on integrity and governance yesterday.

The 2015 Auditor-General Report (Series 2) was released two days ago, in which issues like poor management of the Cooking Oil Stabilisation Scheme and weaknesses in the management of medicinal supplies at health clinics nationwide were highlighted.

On the issue of GLCs that were not doing well, Ambrin said these companies were supposed to contribute to wealth creation for the government and act as a trustee to the public.

“Instead, they might become a burden, asking for bailouts and additional grants or to convert their loans to equity so they can continue to exist as a going concern, but to whose benefit really, one might ask,” he said.

The Auditor-General also observed that based on his audit experience, there were times where a GLC’s board of directors had been conveniently bypassed on major decisions.

He added that companies should have at least some, if not all, the best practices required to ensure integrity and good governance in their organisation.

“For example, I am very impressed with Khazanah, they have a high standard of governance and are very professional, so to me they are a model GLC.

“Of course we don’t expect smaller companies to have the full-scale best practices that they have, but at least have some elements like a standard operating procedure, internal audit committee, and a good board of directors,” he said.

Former Law Minister Datuk Zaid Ibrahim said merely having policies for integrity and good governance in place were not enough.

“Malaysians need to talk about it and live it in order to move a step ahead,” said Zaid who was a panellist at the conference.

He said putting integrity into action may be challenging because of restrictive laws like the Official Secrets Act but that shouldn’t stop people from doing so.

Zaid said if Malaysians were committed to the principles of integrity and good governance, they needed to be courageous in their cause.

“You cannot defend integrity without courage but be prepared to pay a price for it. You might not get promoted, or get the title, or the contract you want but integrity needs to be cultivated, no matter the price,” he said.

Zaid also said the courage to fight for integrity must come from within and individuals cannot expect the higher-ups to lead the way.

“You must own it and start with yourself,” he said, adding that the more people embrace the idea of integrity, the higher the chance of creating a society driven by morals and truth.
- By LOSHANA K SHAGAR and JO TIMBUONG The Star

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Saturday, 19 November 2016

Bring corrupt culprits to court fast

MINISTER in the Prime Minister’s Department Datuk Paul Low recently told the Dewan Rakyat that the Malaysian Anti-Corruption Commission (MACC) detained 1,011 civil servants and 26 executives of government-linked companies (GLCs) for alleged corruption and money-laundering between 2014 and September this year.

Assets amounting to almost RM172mil were seized and frozen in relation to these cases.

The government officers nabbed outnumbered the GLC executives by nearly 40 to one, but that is no reason to focus less on the fight against corruption in the GLCs.

The GLCs are in many ways a special class of companies.

A GLC is like any other company in the sense that its primary objective is to make money from commercial activities.

At the same time, a GLC is controlled by the Government (usually through majority shareholding) and is thus an extension of the Government.

But that is not the only way that a GLC is like a government department or a statutory body.

Often, GLCs serve as instruments of public policy.

For example, they undertake huge projects that drive the country’s development. They are in industries that are strategic to national interests — aviation, finance, telecommunications, natural resources, automotive, ports and power.

They tailor certain aspects of their operations, such as human resources and procurement, to suit objectives set by the Government. And they champion causes that support what the authorities want to do.

As such, we have every reason to be dismayed if a GLC is not run with integrity and efficiency.

Do we derive comfort from the MACC’s detention of two GLC top men over the past week?

On Nov 10, the Commission picked up the general manager of a GLC at his house in Seremban to assist in a corruption probe.

And on Monday, a director of a GLC was detained for alleged abuse of power and corruption back when he was chief executive officer of another GLC.

We can view these developments as encouraging signs of the MACC stepping up its efforts to combat corruption in GLCs.

But the feel-good factor will not last if the investigations are not followed by swift and successful prosecution.

Hauling up people for questioning and freezing assets is only half the job.

The culprits must be brought to court and people need to see justice delivered without fear or favour.

If this does not happen, it only serves to bolster the longstanding argument that government has no business being in business.

By The Star Says - The Star analyses the issues and developments of the day, and offers a viewpoint.

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