Corporations Are Not Immune to Section 17A of MACC Act 2009

The existence of corruption prevention procedures in commercial organisations won’t spare them from any legal action if the procedures are not effectively implemented.

Malaysian Anti-Corruption Commission (MACC) investigation director Datuk Norazlan Mohd Razali stated Section 17A of the MACC Act 2009 does not grant immunity to the corporate sector if the company is suspected to be implicated in bribery, even though it already has its own corruption prevention procedures.

“For example, an organisation may have policies regarding such procedures, but do not have the proper training to deal with bribery cases involving their employees and they also do not educate their staff. So, the procedures are ineffective and the company can be charged in court in the event of corruption. Adequate procedures must be effective in providing company employees with a proper understanding (of corruption),” he said.

Norazlan said companies must have measures to fight corruption and abuse of power based on the guidelines published on the Governance, Integrity and Anti-Corruption Centre (GIACC) website.

He said commercial organisations must provide these adequate procedures themselves based on the specified guidelines as well as by emulating other countries, like the United Kingdom.

Promoting good corporate governance

Section 17A of the Malaysian Anti-Corruption Commission (MACC) Act 2009 (Amendment 2018) encourages business activities with good integrity and promote good corporate governance practices.

In principle, under Section 17A of the MACC Act 2009 (Amendment 2018), commercial organisations are also subject to punishment if their employees or associates are implicated in crimes of corruption.

The MACC said the date of enforcement was issued by the power of the Minister in the Prime Minister’s Department (Parliament and Law) Datuk Takiyuddin Hassan through the Federal Government Gazette P.U (B) 247 dated May 27, 2020.

The new provision came into force on June 1st.

“If a commercial organisation is found guilty, the penalty under Section 17A (2) is a fine of not less than 10 times the value of the bribe or RM1 million, whichever is higher, or imprisonment for up to 20 years, or both.

“However, commercial organisations can defend themselves if they can show that they have adequate procedures in place to prevent corruption in their operations or businesses,” it said.

Those who wish to learn more about the provisions of the new law can visit the official MACC portal at https://www.sprm.gov.my/. For more detailed guidelines, they can visit the link http://giacc.jpm.gov.my/garis-panduan-tatacara.

Sources: The Edge Markets & Malay Mail

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