KUALA LUMPUR, Nov 11 – According to a survey by Ipsos released last November 6, corruption remains the top public concern in Malaysia, surpassing even unemployment and poverty.
In comparison, on average among countries globally, corruption ranked at the bottom of issues to worry about.
The issue of corruption was also discussed at a forum to mark the launch of the National Social Policy 2030 (Dasar Sosial Negara 2030, DSN 2030) last October 21 where an expert on the panel said DSN 2030 cannot be realised if social injustices like corruption, poor governance, and issues of compromised integrity continue to plague the country.
Mohd Nasir Ab Hadi, president of the Malaysian Anti-Corruption Organisation (Pakar) told the audience at the forum that Malaysia has never reached an acceptable position in the global Corruption Perceptions Index (CPI).
When the government launched the National Anti-Corruption Plan in 2019 (NACP 2019-2023), Malaysia ranked 51 out of 180 countries on the CPI with a score of 53 (out of 100), but in subsequent years the country’s ranking plummeted to 57 in 2020 with a score of 51, and 62 in 2021 with a score of 48.
Malaysia edged slightly up the ranks in 2022 to the 61st position but with a lower score of 47.
In 2023, the country improved its score to 50 and moved up to 57th position on the CPI.
Reasons NACP 2019-2023 Failed To Fully Achieve Its Objectives
Nasir said there were a number of reasons NACP 2019-2023 failed to fully achieve its objectives.
One of the reasons was intervention by influential figures, he said.
“Meaning government officers and politicians in the country’s main institutions were often influenced by individuals who had their own agendas.”
He cited media manipulation as another reason.
“We find that the media glorifies corrupt individuals to the extent that unethical behaviour is cultivated as a norm and sometimes celebrated.”
According to Nasir, the final reason was that the NACP was treated as merely a symbolic gesture.
“(Efforts made) were not serious and there was no political commitment. Meaning there was no tone from the top to carry out the anti-corruption strategy. So we see NACP achieving up to about 70 per cent (of its goals) only.”
Under the current government led by prime minister Anwar Ibrahim, a National Anti-Corruption Strategy (NACS) has been developed with the specific target of positioning the country in the top 25 ranking on the CPI by 2030.
“Layers” Of Institutions To Address Corruption
The forum’s moderator, Sayed Munawar Sayed Mohd Mustar, asserted that the problem is because the country has many “layers” of institutions to address the issue of corruption.
“We don’t just have the MACC, we have the EAIC (Enforcement Agency Integrity Commission), we have the (Malaysian) Institute of Integrity, we have the IPCC (Independent Police Conduct Commission) — all of that but our ranking on the CPI still falls.
He recalled that when the country’s integrity officers went for a course in Sweden, they were told that in Sweden, corruption is not addressed by various institutions like it is in Malaysia. “Its laws are solid, courts are free and that is sufficient,” said Sayed Munawar.
Sweden is currently ranked sixth out of 180 countries on the CPI with a score of 82.
“We don’t need layers of institutions. Because the fact that we have them means we don’t have integrity because we’re spending the people’s money without delivering any results.”
MACC Hampered By Limitations
However, Nasir said the MACC is hampered in its efforts to eradicate corruption due to its limitations.
“The MACC’s power is limited as it can only conduct investigations. The job of prosecuting falls under the purview of the attorney general’s chambers. It is stated in the constitution that the attorney general has the authority to decide whether to proceed with charges against the accused.”
Furthermore, the MACC is hindered by its shortage of manpower.
“If we look at its community education division for states, in KL there are only four or five officers. How are they supposed to educate KL society on what is corruption, the culture of corruption, and efforts to abolish corruption?
“Based on research, ideally MACC should have a workforce of 5,000 people but it only has about 2,800. So, we are short of 2,400 people to address the issue of corruption in this country with its population of 34 million.”
What Are The Impacts Of Integrity Units In Public Agencies
Nasir said this is why the government established integrity units (IU) in all public agencies. The implementation of IU in every ministry, department and public agency, both at the federal and state level was enforced on August 1, 2013.
IU function as the focal point for management issues relating to integrity in all public agencies by implementing six core functions: governance, integrity enhancement, detection and verification, complaints management, compliance and discipline.
“So, now we have about 3,000 integrity officers, who were trained by MACA (Malaysian Anti-Corruption Academy).” However, the integrity officers are also faced with constraints,” Nasir said.
“According to the prime minister’s office, the IU must report straight to the governing body. Meaning if it is a GLC, the IU must report to the board of directors. But in reality there are some agencies, their IU are reporting to the CEO.”
He said Pakar has suggested to MACC that the management of IU get on the ground to observe for themselves how the integrity officers are conducting their duties. “Are they really performing their responsibilities as instructed by the prime minister?
Nasir added that Pakar has also suggested that MACC conduct advanced courses for the integrity officers so that they will have the confidence to perform their duties.
“I believe there are integrity officers who do not know how to perform their duties at all: how to conduct an interrogation, how to conduct a domestic inquiry.”
He said former officers of MACC established Pakar to assist MACC officers. “We know the constraints they are facing. We want all NGOs to work together under the same platform. We have TI-M (Transparency International Malaysia), Rasuah Busters, but all are working in a silo. We need to work together.”
If MACC is not able to provide training for integrity officers, Pakar would be willing to provide the training, said Nasir.
“Pakar has assisted state corporations, GLCs, to create or establish organisational integrity plans. We have assisted Mimos, PKNK (Kedah State Development Corporation), Mada (Muda Development Authority) and also some agencies as we have a technical committee that can help.”
At this stage, there are a lot of personnel and machinery to tackle corruption but it is not being adequately utilised, Nasir opined.
He suggested that integrity officers be seconded to MACC for six months to find out how the commission performs its duties including conducting investigations and carrying out corruption prevention work.
“We’ve had integrity officers for 10 years now. What are their impacts and effects?”
Corruption Law Reforms
The government has also made law reforms through the introduction of a corporate liability clause under Section 17A of the MACC Act 2009, Nasir pointed out.
The provision, which took effect on June 1, 2020, provides that a commercial organisation commits an offence if any person associated with the commercial organisation commits a corrupt act for the commercial organisation.
However, as a defence, the corporate organisation can demonstrate that they have put in place ‘adequate procedures’ to deter persons associated with the commercial organisation from committing corrupt acts of gratification.
If a commercial organisation is convicted under Section 17A, the penalty under Section 17A (2) is a fine of not less than 10 times the value of the bribe or RM 1 million, whichever is higher, or imprisonment for up to 20 years, or both.
“We didn’t have this law before. It used to be whoever gives the bribe, if they get caught, they will be punished. But now, the corporate liability clause says the company can also be held liable,” Nasir said.
“To date, we have two cases currently being tried, which are Pristine Offshore and Menara KL. But we don’t have a decision yet on both these cases so we don’t have a reference or precedent yet.”
While the law reform of Seksyen 17 is commendable, there are still a lot of loopholes, he maintained.
“We follow the UK Bribery Act and the FCPA (Foreign Corrupt Practices Act) but we don’t have other laws that follow up to it. For example, the FCPA has a Deferred Prosecution Agreement.”
In the United Kingdom, a Deferred Prosecution Agreement (DPA) is an agreement reached between a prosecutor and an organisation which could be prosecuted, under the supervision of a judge.
The DPA enables a corporate body to make full reparation for criminal behaviour without the collateral damage of a conviction (for example, sanctions or reputational damage that could put the company out of business and destroy the jobs and investments of innocent people).
“In Malaysia, we don’t have that. We came up with Section 17A under desperate circumstances to meet the requirements of UNCAC (United Nations Convention Against Corruption). We are a signatory to UNCAC,” Nasir said.
He cited another example where the lack of a proper law to address an issue has allowed it to persist.
“We know the annual national audit reports show a lot of wastage and leakages in government agencies and ministries but nothing is ever done to address this. But if we have a law called MiPO (Misconduct in Public Office), then we can hold the people responsible to account.”
In the UK, MiPO is a common law offence concerning serious wilful abuse or neglect of the power or responsibilities of the public office held. It carries a maximum sentence of life imprisonment.
Trust Deficit Extends To Religious Institutions
Based on his many years of experience tackling the issue though, people are not deterred by explanations, laws and penalties because corruption is deeply embedded in the culture, according to Nasir.
He suggested that appealing to a person’s faith might be a more effective way of eradicating corruption.
“We have to practise the concept of muraqabah. Muraqabah means whatever we do, we will be watched over by God. It means what we do, we will receive the punishment.”
However, Syed Munawar pointed out that the trust deficit also extends to religious institutions. “You see religious people being arrested, muraqabah or no muraqabah. They may quote Quranic verses but it is the very same Quranic verses that they are violating behind the scenes.”
He suggested that the separation of powers is needed to avoid the complications of layered institutions.
“In Sweden, the system is to report to the police, go to court…and it’s all taken care of from there. The separation of powers is clear.”
Syed Munawar cited the example of a Malaysian couple who was sentenced to prison in Sweden for hitting their children.
“When we tried to use diplomatic channels to help, the minister said: Sorry, this is a court process. If you want to help, enter the court process.
“We have not reached the maturity of that system.”
