An individual who attended a webinar of the Malaysian Anti-Corruption Commission Act’s provision on corporate liability for corruption, lamented to an esteemed guest speaker, the former Deputy Director-General of National Centre for Governance, Integrity & Anti-Corruption ("GIACC"): “Bribe-free companies are seeing declined revenue. How should the government compensate these companies for undertaking an anti-corruption position?”
The angle of this question seemingly reflects the rather antiquated mentality of many, if not all Malaysians who:
1. are failing to see that prevalent corruption in the country has chiefly caused:
rising costs in daily needs,
the widening socio-economic gaps,
inequitable access to healthcare, education & other infrastructures (energy, clean water, internet, etc.); and
2. have the notion that the going concern of Malaysian businesses has to have a nexus to government connections, concessions, mega projects, patronage, exclusive subsidisations, etc. (reciprocated with kickbacks and incentives to some degree).
Taking on an anti-corruption stride should be mutually exclusive of the reliance on the government to recompense! Here is why.
Malaysia continues to spiral downward on the annual Transparency International’s Corruption Perception Index. In the 2019 CPI, Malaysia scored 53 out of 100 points, a significant increase of 6 points from the 2018 CPI, which improved its global ranking. Scoring 51 points in the CPI 2020 and at 48 points in the CPI 2021, 9 out of 13 surveys (amongst them are WEF Executive Opinion Survey, IMD World Competitiveness Yearbook Executive Opinion, World Justice Project Rule of Law Index) that contributed results to the CPI barometer, have concurred around these reasons.
i) No real progress on reforms, ie. the Political Financing Bill yet to be tabled, the Independent Police Complaints Commission Act removing independent investigations of police misconducts, disregarding proposed independent oversight of the Malaysian Anti-Corruption Commission & amendments to the Whistleblower Protection Act not taking place.
ii) High-profile personalities whose corruption cases were discharged not amounting to acquittal
iii) A suspended Parliament due to state of emergency declared
iv) Refusal to curb systemic corruption and far less cadence on the National Anti- Corruption Plan’s initiatives than when it started
v) Revitalising political patronage that was once removed by the 2018 elected government
vi) No actions were taken against government officials who abused their position
vii) Continuous and repeated governance failure in the Auditor General’s annual reports
In summary, the government of the day has done little to stimulate the country’s democracy, development and economic growth in the past two years, but remarkably excels at corruption which stymies any political will to facilitate positive institution restructuring. It is no wonder that Malaysians cannot shake off their view that corruption is an exclusive affliction of the politicians and government officials.
Not uncommon is the Malaysian businessman’s opinion that law enforcers are somewhat short on integrity and efficiency, and knows they can get away with an unfair advantage or two if they so incline to offer a bribe. This disposition is perhaps very telling that the laws per se are not the deterrent entirely. Effective enforcement is. Either a sound or lack thereof leadership within the regulatory enforcement will influence how law enforcers carry out their duties. Some uphold the rectitude of being a model government official. Some choose to solicit bribes in the line of duty to enjoy material wealth that is otherwise inaccessible to a salaried public officer. Some are bound to accept bribes top-down, to loyally safeguard a perverse interest that is institutionalised in that public office.
In fact, corruption is just as conspicuous among other societal circles, ie. the HR manager making grease payments to expedite his foreign employees' work permit application on the advice of a labour recruitment agency, the CEO bribing a doctor with all-expenses-paid holiday for an exclusive supply contract, the road user who flouts traffic laws & pays off the officer from issuing a summons, etc.
If it is the case of no end to the insatiable appetite of the various `bribe tribes', then the stakes to keep bribery practices only get higher, eventually bleeding out commercially-driven entities that oblige. The price to pay?
Not being able to afford their employees the salaries, wages & benefits deserved.
A reputation of notoriety earned.
Fines & incarceration for directors, owners & senior management officers involved directly, indirectly or unknowingly, as provided under Section 17A MACCA.
Cessation of business.
What seems to be hindering Malaysian companies from getting their anti-corruption framework off terra firma?
Issue | Resolution |
Rhetorical leadership - Conjuring up anti-corruption pledges in the organisation, but acting in contradiction or exempting oneself from them. Not only is this paradoxical, it builds mistrust amongst employees and fellowship within the organisation. | Leaders must walk the talk - Driving a culture of compliance will always be an ongoing process, and modeling the behaviours of that culture is symbolic of true leadership. |
Lacking compliance intel - Having little experience and understanding in establishing a compliance culture; employees & even the senior management fatigue themselves from repeatedly attending `big picture anti-corruption movement' webinars and still do not find answers to their dilemma. | Get critical support and guidance - There are abundant compliance resources, free consultations & professional vantage points offering insightful anti-corruption stratagem that can be broken down into bite-sizes and adopted as best practices specific to an industry, business needs or not-for-profit objectives. |
Fear of losing business - Those who bribe get the business. Everyone is doing it. | Review opportunities in ethics - Expand business relations with ethically reputable partnerships. Everyone is doing it. |
A gentrification of mindset sparks a clarity to ask the right questions that arrest corruption:
“How does our company be a successful ambassador of our corporate values?”
“What can the communities do collectively to enable a circular compliance culture that is sustainable?”
“What are the rights accorded to me when I report unrepentant doings to the authorities, both internal (within the organisation) and external (the regulators)?”
Setting up an anti-corruption compliance regiment needs not be a complex undertaking. The five key principles; top-level commitment, risk assessment, undertaking control measures, systematic monitoring & review, and training & communication suffice to prevent, detect and respond to misconducts in any organisation. This calls for looking into how these compliance best practices around the world can be emulated, because they are tried and tested for pragmatism and effectiveness.
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