STRENGHTHENING INTEGRITY AND COMBATING CORRUPTION MALAYSIAN EXPERIENCE

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STRENGHTHENING INTEGRITY AND COMBATING
CORRUPTION MALAYSIAN EXPERIENCE by DATO
ZULKIPLI MAT NOOR DIRECTOR-GENERAL ANTI-CORRUPTION
AGENCY MALAYSIA BRISBANE, AUSTRALIA 7 OCTOBER
2002
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CORRUPTION IS BETTER KNOWN AS A PRACTISE WHICH
ENABLES SOMEONE TO OBTAIN REMUNERATION THROUGH
ILLEGITIMATE MEANS.. GENERALLY, CORRUPTION IS
UNDERSTOOD AS GIVING SOMETHING TO SOMEONE WITH
POWER SO THAT HE WILL ABUSE HIS POWER AND ACT
FAVOURING THE GIVER.
The Challenge - 1996 Datuk Seri Dr. Mahathir
Mohamad Prime Minister of Malaysia
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Corrupt means doing an act knowing that the act
done is wrong, doing so with evil feelings and
evil intentions
Raja Azlan Shah, Former Lord President
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CORRUPTION REALITIES -

• - Not new
• Every country and society is faced with this
  problem
• Greed
• Opportunity
• Mutually beneficial
• Secret
• Hampers economic growth, social and political
  developments
• Undermine nation-building efforts
• Destroy the efficient functioning of any society

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CHALLENGES

• TO ERADICATE CORRUPTION, ABUSE OF POWER AND
  MALPRACTICES
• TO MOULD AND UPHOLD INTEGRITY
• FIRM COMMITMENT AND DRIVE BY ALL SECTORS A
  COMPREHENSIVE NATIONAL EFFORT

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..ALREADY IN PLACE..

• FIRM COMMITMENT AT THE HIGHEST POLITICAL AND
  ADMINISTRATIVE LEVELS
• NECESSARY LEGISLATIONS
• ENFORCEMENT AGENCIES
• ADEQUATE LOGISTICAL SUPPORTS
• INTERNATIONAL CO-OPERATION

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Strategic Approach

• 1. Education
• Prevention
• Investigation Prosecution
• Public relations

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LEGAL ASPECTS

• LEGAL PARAMETERS
• LEGAL MEANS

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LEGAL PARAMETERS
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LEGISLATIONS An important weapon in the fight
against corruption, abuse of power and
malpractices
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ANTI-CORRUPTION ACT 1997
EMERGENCY (ESSENTIAL POWERS) ORDINANCE NO. 22/1970
PENAL CODE
POLICE ACT, 1967
CUSTOM ACT, 1967
ANTI-MONEY LAUNDERING ACT 2001
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ENFORCEMENT/ REGULATORY AGENCIES
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POLICE
CUSTOMS
SECURITIES COMMISSION
COMPANIES COMMISSION OF MALAYSIA
CENTRAL BANK OF MALAYSIA
AUDITOR GENERAL ACCOUNTANT GENERAL MALAYSIAN
MODERNISATION AND MANAGEMENT PLANNING UNIT
(MAMPU) PUBLIC COMPLAINTS BUREAU (PCB)
ANTI-CORRUPTION AGENCY
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LEGAL MEANS
ANTI-CORRUPTION ACT 1997
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• DETECTION
• INVESTIGATION
• PROSECUTION
• PREVENTION
• COMMUNITY EDUCATION

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6. DECLARATION OF ASSETS 7. SEIZURE OF
PROPERTY 8. FORFEITURE 9. CONFISCATION 10. DUTY
TO REPORT CORRUPTION 11. PROTECTION OF WITNESS
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• OFFENCES
• Soliciting
• Accepting
• Obtaining
• Agreeing to accept
• Attempting to obtain
• Giving
• Agreeing to give
• Offering any gratification
• as an inducement or reward for doing or
  forbearing to do anything for the benefit or
  advantage of the offerer or bribe giver (section
  10 and 11 ACA 1997). These sections apply to both
  an officer of a public body as well as persons in
  the employment of companies, commercial and
  corporate entities.

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PENALTY
IMPRISONMENT - Minimum 14 days, - Maximum 20
years and FINE - Not less than 5 times the
value of the gratification or - RM10,000.00
whichever is the higher
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• DECLARATION OF ASSETS
• to furnish written statement made under oath on
  all sources of income and assets owned or held
• failure to comply - mandatory imprisonment for a
  term of not less than 14 days and not more than
  20 years and a fine of not less than RM
  100,000.00

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Any public officials, owns, possesses, controls
or holds any interest in any property which is
excessive, having regard to his present or past
emoluments and all other relevant circumstances,
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the Public Prosecutor may by written direction
require him to furnish a statement on oath or
affirmation explaining how he was able to own,
possess, control or hold such excess. Failure to
explain satisfactorily such excess, shall be
guilty of an offence and on conviction be liable
to -
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(a) Imprisonment of not less than fourteen days
and not exceeding 20 years and

• Fine not less than five times the value of the
  excess, or ten thousand ringgit (A5,000.00),
  whichever is the higher.

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If the information/evidence gathered shows that
his standard of living attributes to corrupt
activities and there is reasonable ground to
suspect that his excess income or property held
or acquired by him could be attributed to such
activities then he could be formally indicted for
an offence under this Act.
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SEIZURE OF PROPERTY
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SEIZURE OF MOVABLE PROPERTY
In the course of an investigation, any movable
property which any officer of the Agency has
reasonable grounds to suspect to be the
subject-matter of an offence or evidence relating
to the offence shall be liable to seizure.
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SEIZURE OF IMMOVABLE PROPERTY
Where the Public Prosecutor is satisfied on
information given to him by an officer of the
Agency that any immovable property is the
subject-matter of an offence, such property shall
be liable to seizure, and the seizure shall be
effected
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SEIZURE OF MONEY, SHARES, SECURITIES, STOCKS
Any movable property seized under this Act
consists of money, shares, securities, stocks,
debentures or any chose-in-action, in the
possession or under the custody or control of any
person other than the person against whom the
prosecution is intended to be taken, the seizure
shall be effected. Henceforth
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(a) prohibiting him from using, transferring,
or dealing with such property or (b)
Requiring him to surrender the property to an
officer of the Agency in the manner and within
the time specified in the order
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ABUSE OF POWER
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OFFENCE OF USING OFFICE OR POSITION FOR
GRATIFICATION
Any officer of a public body who uses his office
or position for any gratification shall be guilty
of an offence.
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DUTY TO REPORT CORRUPTION
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DUTY TO REPORT CORRUPTION
Any public official, given, promised, or offered
gratification shall make a report to the nearest
officer of the Agency or police officer.
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DUTY TO REPORT WHEN GRATIFICATION HAS BEEN
SOLICITED OR OBTAINED
Any person from whom any gratification has been
solicited or obtained, or an attempt has been
made to obtain such gratification, shall report
to the nearest officer of the Agency or police
officer.
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PROTECTION OF INFORMERS AND INFORMATION
Information received and the identity of the
informers shall be kept secret and shall not be
disclosed in any civil, criminal or other
proceedings in any court, tribunal or other
authority.
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FOCUS POINTS
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• Practical and efficient procedures
• Code of ethics
• Code of conduct
• Recognition
• Declaration of assets and liabilities
• Monitoring
• Auditing
• Internal control
• Protection of whistle-blowers
• Accountability and responsibility
• Transparency
• Recruitment and training
• Excellent work culture TQM, QCC,

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PUBLIC SECTOR
National program to eradicate corruption and
uphold integrity in the public service
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DISCIPLINARY ACTION
Public Officers (Conduct And Discipline)
(Amendment) Regulations 2002 P.U.(A) 246
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• Special Cabinet Committee on Management
  Integrity Chaired by Deputy Prime Minister
• Integrity Management Committee in all
  Government Departments

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THE MANAGEMENT INTEGRITY COMMITTEE

• Objective
• Efficient and disciplined Government
  Administration and Public Service
• Highest level of integrity
• Practice of noble values
• Ensuring efficient and dynamic management
• Zero tolerance towards corruption, abuse of power
  and malpractices

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LAWS REGULATIONS
REHABILITATON
SYSTEMS WORK PROCEDURES
INTERNAL CONTROL
TERMS OF REFFERENCE
POSITIVE VALUES ETHICS
MONITORING PUNITIVE ACTION
CODE OF ETHICS
RECOGNITION
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PREVENTION OF CORRUPTION
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• EXAMINE THE PRACTICES, SYSTEMS AND PROCEDURES OF
  PUBLIC BODIES
• OBJECTIVE TO FACILITATE DISCOVERY OF OFFENCES
• REVISION OF SUCH PRACTICES, SYSTEMS OR PROCEDURES

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INSTRUCT, ADVISE AND ASSIST ANY PERSON, ON THE
LATTERS REQUEST, ON WAYS IN WHICH CORRUPTION MAY
BE ELIMINATED
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ADVISE HEADS OF PUBLIC BODIES TO REDUCE THE
LIKELIHOOD OF THE OCCURANCE OF CORRUPTION
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OTHER REGULATORY MEASURES
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• Punch Card
• Total Quality Management
• Clients Charter
• Quality Control Circles
• Code of Ethics
• Implementation of MS ISO 9000
• Administrative Circulars
• Excellent Work Culture Movement
• E-Government
• Letter of Undertaking

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INTEGRITY VETTING

• Promotions
• Optional retirement
• Conferrment of awards Federal or State

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PRIVATE SECTORS
Guidelines for developing a corruption prevention
plan
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1. Develop and circulate a comprehensive and
integrated corruption prevention
policy a. explain position on corruption
b. set aims, objectives c. outline work that
need to be done to minimise corruption
risk. Reference to be made to existing
policies and procedures that relate to
corruption prevention.
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• 2. Internal Auditing
• Financial
• Management
• Manpower
• 3. Corruption Prevention Unit
• Coordinate
• Monitor
• Analyse
• Recommend
• Ensure implementation
• Disciplinary action

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• 4. Risk Assessment
• An important management tool
• Awareness raising program
• 6. Effective internal reporting system
• Encourage whistle-blower
• 7. Clear policy and detailed procedures for
  reporting corrupt practices to the ACA or Police

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CONCLUSION
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Transparency Accountability Responsibility Integr
ity Hands-on Management Ethics and Noble
Values Determination
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THANK YOU
UPHOLDING INTEGRITY ERADICATE CORRUPTION