CORRUPTION is a universal endemic that entrenches the inequities within societies. It is where greed consumes life and power is abused for selfish gain at the expense of others.

The United Nations Convention against Corruption (UNCAC) is an instrument to overcome this. Malaysia became a signatory of UNCAC in 2003 and ratified the convention five years later.

The standard instrument drawn by the UNCAC moved Malaysia to repeal the Anti Corruption Act 1997 and replace it with the Malaysia Anti-Corruption Commission Act 2009.

This is the only principal legislation that deals with corruption.

The government has strived to show a strong anti-corruption stance.

1Malaysia Development Bhd (1MDB) has been Malaysia’s most serious corruption scandal to date.

The scale of embezzlement and money laundering investigators have uncovered has led the fund to be known as a “national embarrassment”.

Thus, this is why section 17A of the MACC Act was amended in 2018 and came into force in 2020, in line with article 26 of the UNCAC, giving the MACC powers of investigation into corporate corruption.

The amendments were adopted from the UK Bribery and Corruption Act 2010, but the MACC has a wider scope under the provision of “corporate liability”.

Under the general rule, the company and its director are two separate entities.

However, corporate criminal liability extends to the company and directors to be held accountable.

Nevertheless, the company or the commercial organisation shall be acquitted if it has adequate procedures in place, which will be determined by the court in adopting the “TRUST” concept:

• Top-level commitment
• Risk assessment
• Undertake control measures
• System review, monitoring and enforcement
• Training and communication.

These are similar to the guidelines set under the corresponding UK law and Singapore’s Corrupt Practices Investigation Bureau procedures, where they have introduced PACT “A Practical Anti-Corruption Guide for Businesses in Singapore”.

In light of the above, a former managing director of Goldman Sachs Group and Roger Ng were sentenced for facilitating corruption. Their companies, Goldman Sachs and Goldman Sachs Malaysia, have admitted to conspiring to violate the anti-bribery provision under the US Foreign Corrupt Practices Act (FCPA), where the company had to pay more than US$2.9 billion (RM14.3 billion) as part of a co-ordinated settlement for its role in the scandal.

The rationale of section 17A here does not only cover corporate liability for corruption but it also that liability that extends to its directors.

Perhaps it is time for the employees to stand together in helping the country to combat corruption. – May 1, 2023.

* Matilda George reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.