PETALING JAYA: The government has been urged not to delay the gazetting and implementation of Section 17A of the Malaysian Anti-Corruption Act, which provides strict liability offence to commercial organisations for failing to prevent corruption.
Transparency International-Malaysia (TI-M) said this is especially as businesses are financially hit by the Covid-19 pandemic, which may force smaller companies to turn to corrupt practices to cover for their losses.
“We urge the minister in charge of law Datuk Takiyuddin Hassan to take the appropriate measures to gazette the Corporate Liability Section 17A provision to be enforced in June 2020, as had been promised.
“While requests to defer its implementation can be considered as businesses are hit by the pandemic, it should not be postponed for too long. The provision should be enforced by this year,” TI-M president Muhammad Mohan said in a statement today.
On April 5, 2018, Parliament passed amendments to the MACC Act 2009 to further strengthen laws on the prevention of corruption in Malaysia, especially in the business world.
Under Section 17A, a commercial organisation will be liable if any individuals involved in the organisation gives or agree to give any form of corruption with the intent to profit the company.
Muhammad said the enforcement of this provision was necessary as it is an effective method to fight corruption at the corporate level.
He also noted that based on a survey by Malaysian Institute of Corporate Governance (MICG), 54% of top 100 listed companies in Malaysia have prepared their own Adequate Measures, which he said was a positive development.
“In addition, MACC needs to continue with its efforts to provide clearer explanations to commercial organisations so as not to be involved in graft,” he said.
On suggestions that a Deferred Prosecution Agreement (DPA) clause be introduced, Muhammad said this could be done under the supervision of a judge, so as not to waste court’s time.
“It will also provide the opportunity to the companies involved to make negotiations on the payment of fines, and take proactive steps to ensure the matter does not repeat,” he said.
