KUALA LUMPUR: Companies running for government purchase contact tenders must make full disclosure of their information including beneficial ownerships.
Malaysian Anti-Corruption Commission (MACC) chief commissioner Latheefa Koya said tenders, for example, should not be awarded to companies linked to ministers or officials of the awarding organisations.
She also called for a specific law on addressing unscrupulous vested interests, which saw instances in cases linked to 1Malaysia Development Berhad involving billions of ringgit.
Latheefa said MACC was planning to draft a specific provision on beneficial ownership in the MACC Act.
It is understood it would be included under Section 20 of the MACC Act, which centres on offences on procuring withdrawal of a tender.
"In the past years, Malaysia has been faced with multiple cases that prove the importance of having strong beneficial ownership legislation.
"The SRC International case, which is currently on trial, (as well as) big cases that have been charged in court by the MACC particularly on 1MDB and the one involving a former deputy prime minister, are clear examples why a strong law on beneficial ownership becomes all the more important.
"Companies are being used in these cases to cloud the eyes of enforcement agencies and to 'legalise' (questionable) financial gains," Latheefa said in her speech to open a workshop on "Promoting Beneficial Ownership Transparency in Southeast Asia."
The workshop was organised by the MACC, the UK Foreign Commonwealth Office, United Nations Office on Drugs and Crime, and the World Bank.
Latheefa said early this year, Prime Minister Tun Dr Mahathir Mohamad had announced that amendments to the MACC Act would be made to allow authorities to determine the owner or stakeholders of a suspect company.
"The prime minister said the government saw a need for this as there had been many cases where the names of other individuals were used as 'proxies' to shield the actual owner from probable action.
"Millions of Malaysian taxpayers are paying a terrible price today for the greed of a few.
"We will not and must not allow corruption to recur. The full force of existing laws are being brought down on the wrongdoers, and we must ensure that unclear, or hidden beneficial ownership will not be used to enable criminal enterprises."
Later, when met by reporters, Latheefa expressed hope that the amendment would be hastened.
"It is viewed as a matter of utmost importance and should not be delayed. We need to be equipped with sufficient laws to support our investigations.
"(MACC) will be more effective with such laws. Today's workshop, for example, is important (to find ways) to iron out any redundancy or conflicts between jurisdictions.
"We have laws such as AMLA (Anti-Money Laundering, Terrorism Financing and Proceeds of Unlawful Activities Act) and Companies Act. We need to look into the MACC Act (to decide) whether for a new provision or additional reference.
"Yes, we will also look at examples of similar laws in other countries. They may have a different approach concerning enforcement. But based on MACC's experience, such a law is a necessity because there have been too many (cases involving) proxies."