Transforming Malaysia

The Fight Against Corruption

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2 3
THE MALAYSIAN ANTI-CORRUPTION
COMMISSION (MACC) began its operation ofcially
on January 1, 2009, replacing the Anti-Corruption
Agency (ACA) Malaysia. It was established by
legislation, namely the Malaysian Anti-Corruption
Commission Act 2009 (Act 694). Prior to that,
efforts to combat corruption were formally carried
out by a small unit under the Prime Ministers
Department which handled corruption-prevention
activities mainly through lecturing. Concurrently,
criminal investigations involving corruption were
being handled by the Special Crimes branch that
was set up within the Police Department while the
prosecution of corruption cases was conducted
by the Prosecution Division of the Law Ministry.
In view of the fact that anti-corruption efforts
were being carried out independently by different
agencies, the Government decided to consolidate
them under one roof known as the Anti-Corruption
Agency (ACA).
On July 1, 1973, the National Bureau of
Investigation Act was passed by Parliament and the
ACAs ofcial name was changed to the National
Bureau of Investigation (NBI). This change of name
was for the purpose of giving more power to the
Bureau, which not only handled cases related to the
National Interest, but also represented the rst
time a department had been established by a legal
Act.
The name of this department then reverted back
to the original name, ACA, on May 13, 1982, when
the Anti-Corruption Agency Act 1982 was passed by
Parliament and put into force. The main objective in
changing the name was to reect more accurately
the role of the Agency as an institute that was solely
responsible for the prevention of corruption.
In 2008, the Government and Parliament agreed
that the MACC be established in order to enhance
the effectiveness and efciency of nationwide
anti-corruption efforts, as well as to improve the
perception of independence and transparency of
the functions of the Commission. The MACC is
governed by a system of checks and balances to
ensure that the Commission operates in line with
national laws and the aspiration of society.
The Commission commenced its operation on
January 1, 2009 and was ofcially launched on
February 24, 2009, in which the ve mechanisms
established by law were ofcially enacted.
Vision
1. To create a corruption-free Malaysian society
based on high spiritual and moral values.
2. To make the MACC a professional anti-corruption
agency par excellence.
Mission
1. To eradicate corruption, abuse of power, and
malpractice in Malaysia.
2. To concertedly and continuously strengthen
integrity and enhance expertise through human
resources development programs.
Objective
1. To continually address and eliminate all forms of
corruption, abuse of power, and malpractice.
MACC Background:
Transformation of MACC and
Amendment of Law
Creating a Corruption-Free Malaysia
Selamat datang! A very warm
welcome to those attending
the 6th Annual IAACA General
Meeting and Conference. We
are pleased to have you in
Malaysia as we work together
to ght corruption at all levels.
The Malaysian Government,
cognisant of the prevalence
of corruption and recognising
the dangers of corruption to
economic growth, has set itself
the task of ghting corruption
by actively supporting the need
for international cooperation
through the Malaysian Anti-
Corruption Commission (MACC)
with the resolution of creating a
corruption-free country.
This General Meeting and
Conference is an important event
in the ongoing effort to combat
corruption. I am pleased that
Malaysia has undertaken the
formidable challenge related
to anti-corruption efforts. The
success we have in driving away
corruption is directly related to
the economic success we will
enjoy in the future. In particular,
the IAACA is signicant to the
MACC as we strive to make
improvements in the processes
of detection, prevention, and
prosecution of corruption.
The IAACA General Meeting
and Conference will focus
on technical assistance and
information exchange, two
crucial areas for capacity-
building for all law enforcement
agencies seeking to identify and
eliminate corruption.
In my nearly 30 years of ghting
corruption, I can say the patterns
have changed tremendously.
Foreword
Corruption used to be very
domestic, very local, and usually
took the place of a simple cash
payment which could be easily
traced and identied.

Today, it has gone far beyond this
with the progress in Information
Technology. The cross-border
element is so normal today, and
for this reason, the technical
assistance and information
exchange have become more and
more important and very much
needed today. As corruption
is now often tied to money
laundering and international
crime syndicates, anti-corruption
agencies cannot work alone. We
must evolve.
As for the MACC previously the
Anti-Corruption Agency (ACA)
of Malaysia we have been
one of the founding members
of this association since 2005.
IAACA aims at facilitating the
implementation of UNCAC,
consolidating international
cooperation to combat
corruption, promoting measures
for prevention of corruption in
both public and private sectors,
and facilitating the exchange and
dissemination of expertise and
experience.
To raise awareness of
international cooperation against
corruption, goals have been set
for fostering capacitybuilding
for anti-corruption authorities
and improving law enforcement
skills for ofcials from member
states, based on networking as
well as the collective expertise
and resources of its membership.
This Conference and General
Meeting should provide an
opportunity for those who are not
only responsible for preventing
and controlling corruption, but
to all those who are increasingly
concerned about the devastating
effects of corruption and equally
convinced that it is now time
to strengthen our collective
efforts against this practice.
This conference will help us all
in looking for the best practices
from the participating countries
as we collectively address the
issue of corruption.
With this note, I hope that
together we will put into action
what we have agreed upon and
be committed to combating
corruption. Again, welcome to
Malaysia. It is our sincere hope
that your time here is enjoyable
and productive.
Dato Sri Abu Kassim bin
Mohamed
Chief Commissioner
Malaysian Anti-Corruption
Commission (MACC)
4 5
Creating a Corruption-Free Malaysia
Fighting corruption is now an essential part of
the governments ambitious plans to transform
the nation and accelerate economic growth.
Spurred by its determination to achieve the
goal of becoming a high-income nation by the
year 2020, the Malaysian government made
ghting corruption a priority which needs to
be immediately addressed by both the public
and private sectors. Various initiatives have
been implemented to encourage integrity and
transparency as part of the National Key Result
Areas (NKRA) goal of ghting corruption under
the Government Transformation Programme
(GTP). Seeing the effectiveness of its anti-graft
campaigns, the government seeks now to share
the various techniques with countries abroad.
The IAACA, which Malaysia has the honour of
hosting this year, is an international organisation
with the objective of implementing the United
Nations Convention Against Corruption (UNCAC)
and has prioritised the importance of technical
assistance and information exchange from
its establishment in 2006. The Malaysian
Anti-Corruption Commission (MACC) Chief
Commissioner Dato Sri Abu Kassim Mohamed
was appointed as one of the executive committee
members of the IAACA, a platform seen as a
golden opportunity for national anti-corruption
authorities to discuss groundbreaking stratagem.
The IAACA headed by president Professor Cao
Jianming, Prosecutor General of the Supreme
Peoples Procuratorate, Peoples Republic of
China has successfully hosted a series of Annual
Conferences and General Meetings worldwide,
Business Practices. Another Workshop deals
with International Recovery of Ill-Gotten Assets:
Case Histories, while the nal Workshop is
entitled The Role of Prosecutors and Judiciary in
Combating Corruption.

The Conference will be opened by the Prime
Minister of Malaysia and will welcome speakers
from all around the world. The closing ceremony
will then be ofciated by the Deputy Prime
Minister of Malaysia. Highlighted speakers
include Dato Sri Abu Kassim Mohamed, member
of the Executive Commitee of IAACA and Chief
Commissioner of the MACC; Dimitri Vlassis,
Chief of Corruption and Economic Crime Branch,
Division for Treaty Affairs, United Nations Ofce
on Drugs and Crime (UNODC); The Honourable
Tan Sri Gani Patail, Attorney General, Attorney
Generals Chambers Malaysia; Patrick Moulette,
Head of Anti Corruption Division (OECD); Maria
Schnebli Federal Prosecutor, Ofce of the
Attorney General, Swiss Federation; Dato Seri
Idris Jala, CEO of PEMANDU and Minister at
the Prime Ministers Ofce; Martin Kreutner,
President of European Partners Against
Corruption Network (EPAC/EACN) and Chair of
International Steering Committee, International
Anti-Corruption Academy (IACA), Republic of
Austria; and Giovanni Kessler, Director General,
European Anti Fraud Ofce (OLAF). There will also
be speakers from INTERPOL, the international
police organisation, and other prominent
speakers from member countries.
A total of 1,000 participants from 120 different
countries are expected to participate in this
Conference and General Meeting, and the
theme for this year is Technical Assistance and
Information Exchange. The Conference will be
an ideal platform for anti-corruption practitioners
to exchange ideas, best practices, and successful
methods.
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raising awareness of international cooperation
against corruption, fostering capacity-building
for anti-corruption authorities, and improving
law enforcement skills, based on networking
and drawing on the collective expertise of its
members. As of today, the IAACA has launched
global anti-corruption resources and a directory
of anti-corruption authorities, collected and
systematised practices of anti- corruption
authorities operating under different legal systems
for its members usage.
For this years conference, a wide range of topics
will be discussed during the six Plenary Sessions
and four Workshops, which will consist of two
Parallel Workshops each. The Plenary Sessions
are entitled The Need for Intelligence-Led
Policing in The Investigation of Corrupt Practices,
Denial of Safe Havens: Core Elements and
Strategies, Income and Asset Declarations,
Effective Mechanisms for Capacity-Building
Through Technical Assistance, Workshop
Reports and General Discussion, and Adoption
of Conclusions and Recommendations: The Kuala
Lumpur Declaration.
The rst Workshop is entitled Proactive
Investigation: Staying Ahead, while the second
Workshop is titled Performance, Accountability,
and Integrity in Government Administrative and
A major milestone
for Malaysia, moving
forward for MACC
6
th
Annual IAACA
General Meeting and
Conference 2012
6 7
As part of its bold Vision 2020 plan, whereby
Malaysia aspires to become a fully developed, high-
income nation by 2020, it has set out a number of
key initiatives to meet that challenge. Among the
most wide-reaching is the initiative to transform
the very government of the country.
The Government Transformation Programme (GTP)
is an ambitious, broad-based initiative aimed
at addressing key areas of concern to society
while supporting Malaysias transformation into a
developed and high-income nation as per the goals
set forth in Vision 2020. In line with 1Malaysia
People First, Performance Now, the GTP is
focused on:
Identifying and addressing the relevant
priorities that matter most to the people; and
Delivering and sustaining fundamental
changes on a nationwide basis.
The Prime Minister identied seven National
Key Results Areas (NKRAs, see below) following
months of evaluating the peoples expectations
of government and the most pressing issues
were selected to develop the NKRAs. A focused
list of projects and initiatives for each NKRA was
developed to ensure that measurable results for
specic targets could be achieved.
The NKRAs are the responsibility of each relevant
ministry, and the Performance Delivery and
Management Unit (PEMANDU) was initiated to
monitor and measure these achievements. The
NKRAs and its detailed targets were made public
with the publishing of the GTP Roadmap making it
transparent to Malaysians.
Following the rst year in implementation, a
majority of the NKRAs achieved more than 90% of
their respective targets; these results were made
available via the GTP Annual Report 2010.
The transparency is a testament to Malaysias move
in a new direction to inject more accountability
and growth into its environment. GTP measures
will be implemented to ensure a strong foundation
is laid for the transformation of Malaysia into a
progressive, high-income nation.
Government Transformation
Programme (GTP)
Creating a Corruption-Free Malaysia
National Key Results Areas (NKRAs)
The Malaysian Anti-Corruption Commission
(MACC) is an organisation created solely for the
purpose of eradicating corruption. Corruption
takes many forms but, according to the Stanford
Encyclopedia of Philosophy, the most accurate
denition of corruption is the abuse of power by a
public ofcial for private gain.
Lets take the term abuse of power as an
example. An abuse of power can take many forms:
accepting bribes, accepting gifts, manipulating
others for ones own benet and many others all
constitute an abuse of power. Why does it happen?
In most cases, those who are caught usually have
the same answer: greed.
The Prime Minister of Malaysia, Y. Bhg Dato Sri
Najib Bin Tun Haji Abdul Razak, recently attended the
Certied Integrity Ofcer Program and stated that
the government refuses to back down in its efforts
to eradicate corruption, saying, Corruption is the
countrys number one enemy. He also stressed that
words alone are not enough to combat corruption;
it is a serious matter and the challenge is enormous.
In line with this, the government stepped up its
approach to combating corruption, establishing the
Malaysian AntiCorruption Commission (formerly
the Anti-Corruption Agency) in 2009 along with ve
free entities, comprised of 42 ofcials elected by the
people, that serve and act on behalf of the public to
ensure that the MACC and country are corruption-free.

So how does the Commission operate to eradicate
corruption? The principle of the MACC is to act
without favour, and to combat the countrys number
one enemy by attacking it from all angles, and the
commission is built upon trust and faith as it carries
out the duties necessary to eradicate corruption. The
MACC is placed under ve external bodies that all
offer supervision this is known as the check and
balance mechanism as it performs its function
and roles to ensure that the publics expectations
towards the commissions independence, efciency,
effectiveness, transparency, and accountability in
executing its obligations are met. The idea is to
create and maintain a positive public perception
of the MACC, and the government facilitates their
efforts in obtaining public support and cooperation
in combating corruption, abuse of power, and
malpractices.
One of the ve bodies of of the check and balance
mechanism is the Anti-Corruption Advisory Board
(ACAB), which was set up by the provision of law
under section 13 of the Malaysian Anti-Corruption
Commission Act 2009 (Act 649) and came into
being at the same time as the MACC.
The people of Malaysia are the priority in the work
of the ACAB, as it represents the public and strives
on their behalf to ensure that the MACC adheres
to its intended purpose, working and acting as
the publics eyes and voice. Sadly, only a small
percentage of the general public are aware of the
existence and purpose of the ACAB, as the means
of educating the public on this matter is limited
to government websites and portals. It is vital to
spread this information and educate more people
on the ACABs existence and purpose.
Perhaps most importantly, the ACAB is bolstered by
its sister Committees and Panels, each serving in a
check and balance capacity, and each contributing
to the transparency and accountability of the
MACC. These bodies include a Special Committee
on Corruption, a Complaints Committee, an
Operations Review Panel, and a Consultation and
Corruption Prevention Panel.
Finally, to further boost the publics belief
that corruption is being treated seriously, the
government has announced that it will be
increasing the workforce of the MACC, looking to
boost the intake of workers by 150 people each
year. It is hoped that increased awareness of the
purpose and existence of the MACC will attract
more people to join in the ght to eradicate
corruption.
MACC: Transparency and Accountability
Five independent entities work together
as a check-and-balance mechanism
8 9
Creating a Corruption-Free Malaysia
Compliance units established in the key enforcement agencies,
e.g., MACC, RMP, RTD, Customs and Immigration to verify
compliance of laws and procedures, ensure Hot Job Rotation,
reduce bureaucracy, and conduct integrity testing on ofcers.
Circular by MAMPU issued on 8 March 2010 as guidance for civil
servants to deal with attempts to inuence their decisions.
MyProcurement portal launched on 1 April 2010 as a database
for government procurement listing companies awarded
tender and tender price. MyPartnership portal launched on 25
September 2010 disclosing information on privatization and
procurement procedures.
Pilot project completed by NKRA, compiling initiatives
from ministries and agencies on public service delivery
transformation and were distributed to the public and also
announced through radio stations using local dialect of each
respective state.
Act came into force Dec 15, 2010. Five key enforcement
agencies, i.e., MACC, RMP, RTD, Immigration, and Customs now
have Whistleblower Guidelines, SOP, and reporting mechanisms
and serve as a model to other agencies.
14 Special Session Corruption Courts established throughout
Malaysia, coming into operation on 16 February 2011 to speed
up trials and clear backlogged cases.
Established on MACC website www.sprm.gov.my on 4 March
2010 with the objective of creating awareness and as a
prevention measure to stop individuals from engaging in
corrupt practices. Information will remain on the website for
three years.
A scheme created to give recognition to public servants who
report on corrupt practices and those who refuse to accept
bribes. A circular on the implementation was issued by Chief
Secretary General and came into force on 1 Jun 2011.
Ministry of Finance issued a circular on 8 March 2010 consisting
of guidelines on the implementation of and integrity pact
covering all government contracts.
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Establishment of
Compliance Units in Key
Enforcement Agencies
Parameter of
Support Letters
Disclose details of all
government procurement
and privatization
contracts
Increase public
awareness on public
service delivery system/
change in laws, policies,
and procedure
Zero-tolerance
policy supported by
Whistleblower Protection
framework
Completion of Corruption
Case Trials within one
year
Name and Shame
offender database
Recognition to civil
servants who reports on
corrupt practice
Implementation of
Integrity Pact
CORE INITIATIVES ACHIEVEMENTS
NKRA INITIATIVES - SUCCESS STORIES
Engagement with relevant agencies has been coordinated, e.g.,
Bank Negara, MOF, AGC, PDRM, Customs, JPJ, Immigration and
MACC. Bill to be sent to Parliament in March.
Engagement with INTAN, JPA, and MOF whereby JPA
will identify ofcers in procurement jobs and send for
mandatory training. INTAN and MOF to coordinate module
to avoid redundancy in training.
Two accountable ofcers have been given an ID to access
the database. Moving forward, access to asset declaration
for MPs.
A study has been carried out, with three elements identied
and set to be implemented:
i. Fund donated must be in the partys name, not
individuals.
ii. Fund donated must be recorded and issued a receipt.
iii. Partys account is subject to audit.
Already implemented in the key enforcement agencies on
a quarterly reporting basis. Ongoing initiative, enforced
according to ndings and research by Compliance Unit on
Hot Job, Hot Spot, and Hot Staff.
A module implemented by MOF for the public to review past
procurement prices by ministries and agencies.
Only three types of punishment in place for civil servants
convicted of corruption offense, which are suspension from
work, salary reduction, or dismissal. Amendment to PPPA is
in progress by JPA.
All ministries and agencies dealing with public must review
their processes and client charter according to the current
situation. Procedures must be clear, easy to understand, and
timely.
Pilot project done by key enforcement agencies PDRM, JPJ,
and Customs and Immigration to transition from manual to
computerized systems and utilize CCTV as a monitoring device.
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Central Agency to
Manage Conscated
Assets (CAMCORP)
Mandatory training for
procurement ofcers
Develop a centralized
database for declaration
of assets at MACC
Revamp on political
nancing
Hot Job Rotation
Review the
Procurement Price
Negotiation process
Stiffer punishment for
corruption offenders
Reduce bureaucracy
Reduce discretion
through automation
INITIATIVES IN PROGRESS STATUS
NKRA INITIATIVES - SUCCESS STORIES
10 11
Creating a Corruption-Free Malaysia
Success in anti-corruption efforts is a result of
the actual investigations as well as the effective
implementation of the investigation process. This
process requires cooperation from the public,
especially in providing quality information. In
addition, members of the public should be willing
to testify either during the investigation or the
prosecution of a case and also have the awareness
to report acts of corruption.
When conducting an investigation (and even in its
own operations), the MACC adopts two approaches,
namely the proactive-based investigation and the
intelligence-based investigation.
The proactive-based investigation has been
successful in revealing syndicate-based criminal
activities apart from the norm of arresting and
indicting those involved in acts of corruption.
The intelligence-based investigation typically
centres on following up leads and investigating
reports of individual abuse.
However, acts by individuals are rarely the
sole reason corruption occurs. Weaknesses in
the governance (systems and procedures) of
an organisation uncovered through operation
activities is a contributory factor resulting in the
inefciencies of employees engaging in corrupt
practices such as allowing room for bribery or
abuse of power. This can, and often does, result in
losses and damages to the organisation.
In 2011, the MACC experienced successes
through continuous, integrated, and well-planned
enforcement actions that required a collective effort
in the implementation of the MACCs operations
and investigations.
Success of Prosecution Cases
In 2011, a total of 472 persons were convicted
on corruption offences such as bribery,
misappropriation, and abuse of power. Some of
these cases caught the attention of the public as
the sentences had reected the seriousness of the
crime of corruption.
Statistics on Prosecution Cases
In 2011, a total of 263 persons were prosecuted
in the courts of which 80 (30%) were public sector
ofcials, 141 (54%) members of the public, 41
(15%) from the private sector, and one politician.
The public sector category further highlights two
persons (3%) from the top management level, 17
(21%) from management and professional levels,
and the remaining 61 (76%) from the supporting
staff level.
The establishment of the 14 Special Courts for
Corruption on 16 February 2011, allowed for
much more timely processing of cases related
to corruption, and this resulted in a signicant
increase in the statistics on disposition of
corruption cases as compared to 2010.
MACC
Making an
Impact
The Malaysian Anti-Corruption Commission
(MACC) plays a vital role in Malaysia. This agency
is tasked with the role of preventing and averting
the corruption and the abuse of power in Malaysia,
both in the public and private sectors. Promoting
the mission, vision, and objectives of MACC is
not an easy task as it faces a number of potential
problems. MACC is continually seeking ways
to achieve its goals within the connes of both
Malaysian law and the specic MACC Act that gives
the Commission its power.

One of the most challenging obstacles to overcome
is building public condence in MACC in a society
that is understandably cynical about purported
efforts to ght corruption. Perhaps one effective
ways to achieve this is through education, in order
to reach younger generations and lay a foundation
for a society free from bribery and graft, and
a society which understands and supports the
governments efforts to do this.

The joint force of MACC, known as a Anti-
Corruption Secretariat and the educational
institutions is put forward as a way to
communicate the positive value of anti-corruption
efforts among youth as they are in their
adolescent and early adult years. Youth is in the
stage of early period of development and at this
stage, SPR aims to develop and strengthen the
positive values and qualities among the young
in our community. Therefore, the prevalence of
corruption and abuse of power can be reduced
in the future. Malaysia will be a country that
possesses the dignity and honour betting a
country striving to be labeled as world-class.

This collaborative effort was ofcially launched
on 6 December 2007 and among the educational
institutions that have joined force with MACC/SPR
are as follows:
Anti-Corruption
Secretariat
Dato Sutinah Sutan, Deputy Chief Commissioner
(Prevention), MACC.
1) UNIMAP
2) Universiti Utara Malaysia (UUM)
3) Universiti Sains Malaysia (USM)
4) Universiti Pendidikan Sultan Idris (UPSI)
5) Universiti Teknologi Mara (UiTM)
6) Universiti Kebangsaan Malaysia (UKM)
7) Universiti Putra Malaysia (UPM)
8) International Islamic University Malaysia (UIAM)
9) Universiti Pertahanan Nasional Malaysia (UPNM)
10) Universiti Sains Islam Malaysia (USIM)
11) Universiti Teknikal Malaysia Melaka (UTEM)
12) Universiti Teknologi Malaysia (UTM)
13) Universiti Malaysia Sabah (UMS)
14) Universiti Malaysia Terengganu (UMT)
15) Universiti Malaysia Kelantan (UMK)
16) Universiti Sultan Zainal Abidin (UNISZA)
17) Universiti Malaysia Pahang (UMP)
18) Universiti Tun Hussein Onn Malaysia (UTHM)

All of these universities are working in partnership
with MACC to promote positive values in
educational society which falls in line with MACCs
mission, vision, and objectives that focuses
towards a constructive and productive Malaysian
society free from bribery, corruption, and abuse
of power.
IPG (English: Teachers Education Institute) is a
comprehensive,structured, and well-designed
programme serving as an outreach method to
reach students and to teach them the importance
of eradicating corruption. The programme is
designed to plant the seed of integrity from early
childhood through education syllabuses and
courses of study. So far, 27 IPGs are involved
in the programme, parallel with the Education
Transformation Programme that was launched by
Prime Minister in early September. Each of these
initiatives functions collaboratively in MACCs
ongoing effort to combat corruption in this case,
even before it begins!
12 13
Creating a Corruption-Free Malaysia
Frequently Asked Questions: Corporate Integrity Pledge and
Anti-Corruption Principles for Corporations in Malaysia (2011)
Anti-Corruption Efforts Strengthened
Through Education
1. What is the Pledge?
The Corporate Integrity Pledge is a document that allows
a company to make a commitment to uphold the Anti-
Corruption Principles for Corporations in Malaysia. By
signing the pledge, a company is making a declaration that
it will not commit corrupt acts, will work toward creating
a business environment that is free from corruption, and
will uphold the Anti-Corruption Principles for Corporations
in Malaysia.
2. How do I execute the Pledge?
The soft copy of the Pledge is available for download at
the Malaysian Institute of Integrity website at www.iim.
com.my. You may use that to create an execution copy.
The standard Pledge document provides for execution
by company seal, but you may execute in any other
manner as long as it is a valid method of execution for
such a document by your company, under the relevant
constituent documents and laws pertaining to your
company.
3. What is the effect of signing the Pledge?
The effect of this is twofold: rst, a company will be
making a clear stand, in writing, on how it operates, and
this will serve as guidance to the company in its business
interactions. Second, a company can use this Pledge to
set itself apart from its peers by demonstrating to its
stakeholders that its business operations do not include
any hidden risks or costs that are associated with corrupt
activities.
4. Is adherence to the Pledge monitored?
The Pledge is a tool to be used by companies and is not
a regulatory instrument of any sort. Breach of the pledge
e.g., if a signatory company is later found to have been
complicit in corruption will not carry any legal sanction
under the pledge on its own. Instead, the Pledge will be
given force through self-reporting by the company, to
meet the demands of its stakeholders, in line with the
model adopted under the 10th Principle of the UN Global
Compact. Adherence to the Pledge is therefore monitored
to the same extent that other non-mandated disclosures
by any company to its stakeholders are monitored
through scrutiny and demands of the stakeholders.
A system is being developed to eventually enable more
convenient means of cross-checking whether a signatory
has in fact been found to have conducted activities that
are contrary to the terms of the Pledge.
5. What happens if I know there is corruption at a
company? Does this Pledge help me?
You should report any instances of breaches of laws or
regulations to the relevant regulator, and report any
corruption to the Malaysian Anti-Corruption Commission
(you can call their toll-free hotline at 1-800-88-6000). This
Pledge is an additional tool for companies, to encourage
them to work on their own anti-corruption programme
The Malaysia Anti-Corruption Academy (MACA)
was established in 2003 with the idea that the
establishment of the MACA would enhance the
competency and professionalism of the Anti-
Corruption Agency (ACA) ofcers. The ACA is now,
of course, known as the Malaysian Anti-Corruption
Commission (MACC), but the goal of the MACA
remains the same: Enhancing and strengthening
anti-corruption efforts through education.
Many international institutions and organizations
have agreed to cooperate with Malaysia in
developing anti-corruption programmes, including
conducting the courses, trainings, seminars, and
workshops annually that will cater to the Asia-
Pacic region. This is made possible through the
bilateral and multilateral agreements with other
enforcement agencies in the region.
The MACA has a stated vision of being a world-class
centre of education and excellence in anti-corruption.
Accordingly, the MACA objectives are as follows:
To enhance the accountability and integrity of
MACC ofcers through elective and continuous
training programmes;
To train human capital in public sectors to optimise
the capacity and capability of anti-corruption;
To increase anti-corruption training programmes
through smart partnership with the private
sectors;
To expand collaboration and cooperation with
enforcement agencies, training institutions, and
international bodies; and
International Anti-Corruption Acadamy (IACA)
Chairman Martin Kreutner.
MACA the worlds rst anti corruption academy.
To organize the capacity and capability
development programmes for global community.
The overall mission of the MACA includes the
following:
To lead dynamic, progressive and continuous
development of MACCs human capital;
To increase the capacity and capability of public
and private sectors in preventing corruption
through smart partnerships; and
To strengthen strategic partnership network at
the international level through anti-corruption
training programmes.
According to International Anti-Corruption Acadamy
(IACA) Chairman Martin Kreutner, the IACA is
expected to sign a memorandum of understanding
with MACC in order to establish a framework of
cooperation for its rst International Masters
Programme in Anti-Corruption. Parts of the
programme will be conducted at the Malaysia Anti-
Corruption Academy (MACA) in Kuala Lumpur, the
worlds rst anti-corruption academy.
The 24-month Masters Programme, which is
suitable for anti-corruption professionals, police
ofcers, judges, and other enforcement agency
ofcers, will be launched on 9 December 2012 to
coincide with World Anti-Corruption Day. It is the
rst full-edged programme on global corruption
studies. The programme addresses corruption from
various perspectives, and will involve participants
from all ve continents and all regions.
and internal systems and processes. Thus, it helps a
company to make a rst step toward creating the means
to reduce corruption and increase chances of detecting it.
It does not change the existing laws or law enforcement
infrastructure relating to corruption.
6. What is the Corporate Integrity Agreement?
For companies that want to begin incorporating an
anti-corruption policy in its interactions with business
partners, the Corporate Integrity Agreement is a good way
to start extending your commitment to them. In addition
to your declaration of your commitment via the Pledge,
you can enter into a bilateral commitment with your
business counterpart, whether it be a vendor, supplier,
JV partner or any other counterpart to operate using
the same Principles. This agreement can be entered into
independently or incorporated into your existing contract.
7. What is the effect of signing a Corporate Integrity
Agreement?
The form of the Corporate Integrity Agreement provided is
a tool for companies to help them agree that it is a policy
to engage in clean business relations with one another
and the adherence to the terms of the agreement will not
be monitored or tracked by any regulatory authority or
agency. Once entered into, the terms of the agreement
are between the two signatories and are given the same
force as with any other contractual term. Any sanctions or
provisions for breach of those terms, if any, will be a matter
to be determined by the parties in their actual contractual
documentation.
As to September 2012 a total of 131 companies and
corporate organisation have signed the pledge. Amongst
the pledge signatories are Chamber of Commerce and
Business chambers such as the Malaysian Business
Chambers (DPMM), The Associated Chinese Chambers
of Commerce and Industry of Malaysia ( ACCIM),
Malaysian Associated Indian Chamber of Commerce and
Industry (MAICCI), Malaysian International Chamber Of
Commerce & Industry (MICCI) , Federation Of Malaysian
Manufacturers (FMM).
How do I get included on the
list of signatories?
Companies that seek to be included on the list of
signatories carried on the website can inform Malaysian
Institute of Integrity by depositing a copy of the executed
pledge with them at the address below, through post,
fax or email:
Director, Private Sector, Level 7, Menara Integriti,
Persiaran Duta, Off Jalan Duta, 50480 Kuala Lumpur.
Tel: 03-62092061/62/66 Fax: 03-62092067
Email: swasta@iim.com.my
website: www.iim.com.my
14 15
Challenges For MACC Ofcers
On his job scope:
Basically, I oversee
investigations at the
Headquarters level, particularly
monitoring high-prole cases.
I also scrutinise Investigation
Papers (IPs) for high-prole
cases that are submitted by the
State. My job scope also requires
me to have discussions with
the Senior Federal Counsels for
high-prole cases. Besides this,
another main task of my job is
to table ndings of investigation
before our Operation Review
Panel for consideration
whether they nd it necessary
to review decisions reached by
the Public Prosecutors or they
endorse the decision. I hope for
more understanding from the
public and urge them not to have
unreasonably high expectations
as MACC can only do things
within the law. The Commission
can only proceed if there is
evidence for a particular case. I
hope the IAACA participants and
delegates can learn more about
MACC during the upcoming
Conference just as MACC would
like to learn more from them.

On Perwaja Steel:
The Perwaja case started back in
1999 when the group suffered a
loss of RM2.85 million. There was
a huge public outcry and the Anti-
Corruption Agency (ACA), as it
was known then, was required to
investigate the case. There were
a number of focus areas in our
investigation such as awarding
of contracts to companies and
payment of large amount of
Han Chee Rull
Deputy Commissioner, Putrajaya MACC
Headquarters Senior Deputy Director
He served for more than 25
years in the investigative
eld, and now serves as the
Deputy Chief Commissioner
(Management and Professional),
and his job scope includes
improving the overall
professionalism of the MACC
in terms of care management,
nancial and human resource
administration, and control of
security matters involving MACC
premises.

A major challenge inherent in
this position is handling and
managing multiple aspects of
the concept of professionalism
to ensure that real organizational
change is noticeable. It is crucial
that all staff work together to
improve overall integrity and
provides the necessary training
appropriate to the current
needs in terms of the needs of
the investigation of cases of
corruption and mismanagement.
Challenges also presented
themselves when the
government approved an
allocation of 150 new personnel
Deputy Chief Commissioner
(Management and Professional),
MACC
positions in MACC per year.
Additionally, for the rst time
since the establishment of the
MACC, the government approved
a substantial allocation of
funding for new projects, such
as the construction of new ofce
buildings in several states, each
of which is purpose-built for the
goal of detecting, preventing,
and prosecuting corruption.
Perhaps the main challenge
faced by the Deputy Chief
Commissioner is to ensure
that all MACC ofcers comply
with the departments code of
ethics. Discipline is a priority in
the organization, and ensuring
compliance with ethical
guidelines is of paramount
importance, and of course,
excellence and professionalism
in disciplinary matters involving
MACC ofcers is expected to be
upheld at all times.
Managing disciplinary matters for
ofcers who violate department
regulations has proven to be a
challenge, as well. To address
this issue, it is important that
decisive action be taken, and this
has been the case as stronger
implementation of disciplinary
action has taken hold.

To that end, the establishment
of the Excellent Leadership
Centre of the Academy of Anti-
Corruption is one mechanism
utilised to train and improve
MACC ofcers. This measure will
ensure ofcers have extensive
knowledge and special expertise
in their respective elds of
work and it is hoped that by
enhancing and strengthening
training, increased compliance
with department guidelines will
follow suit.
The Deputy Chief Commissioner
hopes that the public will come
to understand the burden
shouldered by MACC in the
pursuit of eradicating corruption
in Malaysia, and also hopes
that the people will support the
MACC as it ghts corruption for
the betterment of society and
progress of the nation.
Dato Hj Zakaria
bin Hj Jaffar
illegal fees to certain lawyers. But
the main crux of the investigation
was a payment of around RM76.4
million purportedly made to a
company in Japan in connection
with the beam and section mill
plant project undertaken by
Perwaja in Gurun, Kedah. The
beam and mill section project
was undertaken by one of the
major companies under Perwaja
and a Japanese consortium was
supposed to provide technical
assistance while another was the
equipment supplier.
For this case, we should
have allowed auditors like
PricewaterhouseCoopers (PwC)
to go into the case rst and
tell us from where the money
siphoned off and what the
other malpractices detected
were. What happened, however,
was that we went in rst. Had
we let the auditors go in rst,
and then investigated on what
they presented to us, our job
would have been much easier. I
remembered we had to spend
months trying to trace the history
and background of the Perwaja
Group, such as how they got
involved in this steelmaking
business, the rationale of their
various projects, as well as the
roles and responsibilities of
the board of directors. Had we
asked PwC to prepare a report
on this earlier, it would have
been better. A few months after
our investigations, PwC was
commissioned to prepare a
report on Perwaja. Subsequently,
they came up with a very
detailed report. Clearly, had we
received this report earlier, our
investigation would have been so
much easier. That was the major
hurdle we had faced back then as
we were trying to do the auditors
job and our own investigations at
the same time.
Another difculty that we had
faced was gathering evidence. Lots
of evidence was required from
overseas witnesses, particularly
those from Japan. There was no
legal framework for mutual legal
assistance back then. So, we had
a multitude of problems when
we were required to investigate
overseas.
Most of the difculties were
resolved through the use of
the Internet. At that time, the
Internet was still relatively
new. People did not usually
use it for investigations. So, I
made use of the Internet and
did a lot of searches. In fact,
I communicated with various
parties overseas as well as the
Swiss authorities through the
Internet. Moreover, as Hong
Kong was a Commonwealth
country, they shared the same
system with us and we had a
history of a working relationship
with them. Thus, it was not a
problem. But for countries like
Japan, we had to approach
the Japanese embassy here to
establish contact. That was how
I got it going, and basically, that
was how we solved the problem.
Times have denitely changed in
the last decade!
PROFILE
SNAPSHOTS:
16 17
Challenges For MACC Ofcers
Currently, I am the Selangor
MACC Deputy State Director in
charge of operations involving
Investigations, Intelligence,
Prosecution, and Records
Management. That is my main
job. In addition to that, I also
assist my Director in managing
the overall workow of Selangor
MACC involving Prevention and
Administrative Work. I must
admit that I face challenges in
improving the public perception
on corruption issues.
Previously, the Internet was
not so widespread and we did
not have to deal with bloggers
and the new media. These days,
perceptions can be easily and
rapidly formed. Although we
fulll our duties according to
the law, we will not be able to
accomplish the objectives of our
job if public perception continues
to be low. My hope for us is
to be more transparent in our
decision making. However, it is
not for MACC ofcers to reveal
the process of investigations as it
is forbidden under the MACC Act.
Instead, the ve independent
committee/panel, represented
by the public, should be used
as a platform to explain the
processes of high-prole cases.
For this, however, we need to
change in accordance with time.
Job scope
Basically my job scope, based
on provisions of Seksyen 7 (c)
(d) and (e), MACC Act 2009,
consists of giving consultation
to public bodies, organizations,
and private companies on how
to close loopholes and also to
relay opportunities on combating
corruption throughout system
control.
Challenges
We have to convince the
head of the organization to
have very good systems and
procedures in place, and at the
same time, ensure the system
and procedures are followed
by the staff. An effort must
also be made to monitor the
effectiveness of the systems and
procedures because loopholes
in established procedures can
create opportunities for abuse by
those who lack integrity.
Overcoming Obstacles
We have a new approach we
call Corruption Risk Management
I am attached to the
Intelligence Division at the
Putrajaya MACC Headquarters.
My job scope involves detecting
and investigating any suspected
offence under the MACC Act, any
suspected attempt to commit
any offence under the MACC Act,
or any suspected conspiracy to
commit any offence under the
MACC Act.
Since working with the MACC,
I have gone through a lot of
problems and challenges. The
MACC cases are mostly difcult
to resolve in the short term.
I say this because corruption
is increasingly a white-collar
crime. Nowadays, criminals
who deal with corruption are
sophisticated and very wise.
Other challenges include gaining
collaboration from witnesses,
particularly foreigners as key
witnesses in solving complex
cases. Many witnesses will ee
or do not want to cooperate and
will hide themselves. So, how do
you locate and persuade such
witnesses? Firstly, I use contacts
from other law enforcement
departments or foreign agencies
to identify or detect the location
of a prospective witness.
Secondly, a good negotiator
is needed to persuade the
witness to cooperate. Thus,
the Commission needs to
invest more in developing
human capital to combat graft
effectively.
My hope for public perception
towards the MACC is very simple.
The public must see that the
Commission is just enforcing
the law accordingly. I strongly
hope that the public would work
together with the Commission to
ght and eradicate corruption.
P. Gunalan A/L Perumal
Putrajaya MACC Intelligence Ofcer
Tan Kang Sai
Selangor MACC State Deputy Director Chief
Senior Assistant Commissioner
I believe we also need to engage
in grassroots-style meetings
more often to help us understand
what the public wants. My hope
for all IAACA participants is for
them to make use of their time
here to share their experiences
and exchange knowledge and
information with one another.
Through mutual cooperation
and networking, we can assist
each other in combating graft.
Junipah Wandi
Deputy Director of Inspection and Consultation Division, MACC
Job Scope
To assist an Investigation
Ofcer for an IPs related to
Financial Investigation by
providing an expert opinion on
nancial or by using accounting
as evidence to aid anti-
corruption prosecution as an
expert witness in accountancy.
Challenges
In my 14 years experience
with MACC, there has been only
one case in which I faced an
uncooperative witness against
the accused, which happened
to be his boss. In order to solve
the problem, and convince
him to testify, I referred him
to Seksyen 27 of the MACC Act
and told him that it would be an
offence for him not to testify in
the case.
Hope
The public should have faith in
us. We are genuinely working to
improve things.
that we use as a tool to help the
organization review its systems
and procedures, and at the
same time, they can use this
resource to enhance their system
and procedures to pluck in the
loophole for corruption and
malpractices that can be happen
in the organization.
Hope
I hope the public will come to
perceive MACC as a free and
independent body committed to
combating corruption.
Westmoreland Ajom
Senior Superintendent at Forensic Accounting Unit,
Investigation Division
18 19
Creating a Corruption-Free Malaysia
T
here is no doubt that while eliminating
corruption may be the impossible dream,
keeping it to a minimum is critically important
as Malaysia seeks to improve the prosperity of its
citizens. The prevalence of corruption is always a
factor which discourages major companies from
investing in a country.
Hong Kong and Singapore, which commenced
their efforts to minimize corrupt practices back in
the 1970s, have seen the benet with signicant
increases in foreign investment.
Malaysia may have started the battle somewhat
later but their commitment appears to be just as
strong. Involving the expat community is important
because in many cases they can directly assist the
efforts, but equally as important, these expats
can help spread the word that the country
is committed to the process.
The Expat Group has been keen to
support the Malaysian Governments
efforts to ght corruption, and has
signed the Corporate Integrity Pledge,
as well. During the last two years,
we have worked closely with
the various people charged
with leading the effort
to improve the situation
and nd ways to support
their efforts and involve
the expat community. Our
support has taken several
forms.
In 2010, we conducted
research among resident
expats to gather their views on
corruption in Malaysia as well
as suggestions for combating
it. The ndings were shared
with the Government and the
Malaysia Anti-Corruption
Commission (MACC).
The survey revealed that most expats were
concerned about corruption in Malaysia. They felt it
was fairly widespread in Malaysia, although not all
of them encountered it in their day-to-day business
dealings. Most expats felt that the Governments
efforts would produce results, though they thought
it would take time to achieve these. On the positive
side, those who had experienced living and working
in other Asian countries felt the situation was better
in Malaysia than in other surrounding countries.
In 2011, we organized a roundtable discussion
between the MACC and selected senior
management businesspeople in the expat
community so they could discuss the issues
directly with the people charged with improving
the situation. This exercise proved most fruitful and
provided further insights into expats thinking on
the subject. It also gave rise to suggestions
from the expat community on ways to
tackle the problem.
We publish The Expat magazine to which
all resident expats can subscribe free of
charge. As such, it is a highly effective
channel for reaching the large expat
community here. We have carried numerous
stories about the efforts being made
to address the problem and have
encouraged expats to lend their
support.
Additional messages have been
carried on our website, www.
ExpatGoMalaysia.com, which
is one of the most popular
websites for expats seeking
information about living and
working in Malaysia.
We remain condent in the
Governments efforts to eradicate the
problem of corruption in Malaysia and
are delighted to continue supporting
their efforts, and those of the MACC.
The Expat Group Backs
Malaysias Anti-Corruption Efforts
ANDY DAVISON, CEO OF THE EXPAT GROUP, SPEAKS OF HIS COMPANYS EFFORTS TO
INVOLVE THE EXPAT COMMUNITY IN THE FIGHT AGAINST CORRUPTION.