Business owners to be hauled up for graft soon

PUTRAJAYA: A new provision will be included in the Malaysian AntiCorruption Commission Act to allow graft investigators to identify actual owners of businesses, not their proxies, says Tun Dr Mahathir Mohamad.

The Prime Minister said with this, action could be taken against the rightful owners should any corporation be found to have committed fraudulent activities or wrongdoings.

“We have found that some companies are registered under an individual but the actual owners are another person,” he said.

“We want the law to be changed so that we can also nab the actual owners if the companies do wrong,” Dr Mahathir said after chairing the Special Cabinet Committee Meeting on Anti-Corruption yesterday.

The Prime Minister said there were individuals who, to avoid being prosecuted should their companies run afoul of the law, used the names of others to run the businesses.

“Soon ... we will find evidence to identify the beneficial owner and make them responsible to,” he added, without giving any details as to when this law could take effect.

The Prime Minister also said a new ruling would also be enforced where a ceiling for off-budget provisions would be set.

This, Dr Mahathir added, would take off this year.

Dr Mahathir noted that there were instances where such provisions were more than the actual budget.

“We have found that off-budget mechanisms had previously contributed to financial scandals such as 1Malaysia Development Bhd and the setting up of special purpose vehicles.

“Hence, the government will make an effort to minimise offbudget provisions,” he added.

“Also, we plan to improve procurement procedures as well as the conditions in using consultants to improve the government’s financial management.”

Dr Mahathir also announced that the National Anti-Corruption Plan would be launched on Jan 29, adding that this would enable the top brass of administrations as well as the civil service to be champions against the menace.

“All ministers, secretaries-general as well as heads of services must champion the cause against corruption.

“It is not just the job of the Prime Minister to fight this menace,” he said.

The special Cabinet committee on anti-corruption, which was set up six months ago, to date has come up with 61 initiatives to improve governance, administrative system, integrity and anti-corruption involving the government system.