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Holding firms accountable for graft acts of employees

KUALA LUMPUR:  The new provision on “corporate liability”, which will be amended under the Malaysian Anti-Corruption Commission (MACC) Act 2009, is expected to come into force in 2018. 

Minister in the Prime Minister’s Department Senator Datuk Paul Low Seng Kuan said the new provision was ready to be tabled in the third session of the Dewan Rakyat on Oct 17.

“I definitely want to see this implemented.  After we implement it, we need a one-year grace period for companies to adjust their procedures and put in place anti-corruption measures. 

“Even though we may have it this October, we can only implement it properly by January 2018,” he said after the Corporate Integrity Pledge Conference 2016. 

More than 800 companies signed the Corporate Liability Pledge at the conference yesterday.

Once it comes into force, Low said he would like to see all companies in Bursa Malaysia sign the pledge and rope in their vendors, buyers and lenders.

“About 900 companies is a small number. We should build it up to 3,000 to 4,000 in the next three years,” he said. 

Low believed most companies would accept this new provision, which made them responsible for the corrupt acts of their employees. 

He said it would also create a level-playing field for all in the private sector.

The new provision would help them build their compliance capabilities, not only in Malaysia, but in other countries as well.

“For business purposes, it is a benefit for them because building up anti-bribery procedures takes time and it cannot happen overnight.

“This could be the catalyst for helping them build that capacity.”

He said curbing corruption was not solely the job of MACC or government, but must also include the private sector.

He urged more companies to join the cooperate integrity pledge.

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