MACC mulls making firms accountable for employees’ actions

KUALA LUMPUR: The Anti-Corruption NKRA under the GTP Roadmap 2.0 will look at holding companies accountable if their employees are found guilty of graft.

Currently, even if the corrupt practice is carried out on behalf of the company, only the individual can be charged.

The second phase of GTP will focus on inserting a corporate liability provision into the Malaysian Anti-Corruption Commission Act 2009 to make this possible.

The extension of liability to the company stems from a recommendation from the United Nations Convention against Corruption and the Organisation for Economic Cooperation and Development to discourage corruption.

“The enactment of this provision will give an impetus for companies to strengthen their internal processes to fight corruption as the companies themselves could be punished if their employees are found guilty,” the report stated.

Malaysian Anti-Corruption Commission (MACC) investigations director Datuk Mustafar Ali said the implementation of this proposal would leave little room for those from the corporate sector to “manoeuvre or get involved in graft”.

“Corporate liability is a must. This will force corporate firms to lay out stringent guidelines on ethical business practices.”

Transparency International Malaysia secretary-general Josie M. Fernandez said its calls had been answered as it had long been proponents of such a proposal.

“Corporate firms should bear responsibility for the actions of their employees as such corrupt practices benefit the companies.

“Therefore, if employees are found guilty of corrupt behaviour in the line of duty, the companies should be answerable as well,” she said.

The initiative looks to motivate companies to execute the proposals in the Corporate Integrity System Malaysia (CISM).

This will encourage each company to have the corporate liability in their corporate DNA and support the legal framework to fight corruption.

At present, a target of 150 government-linked companies and private companies, representing 90% of Bursa Malaysia’s market capitalisation, has been set to sign the corporate integrity pledge.

Companies that sign the pledge will be listed on CSIM’s website at www.cism.my.

The Anti-Corruption NKRA in the second phase of the GTP will also strive to transform the auditor general reporting process by speeding up the delivery of the A-G’s performance audit to the public, thereby allowing agencies to prosecute graft cases and other forms of misconduct faster.