Corruption among the privileged rampant! Graft probe in Sabah almost done

Perak Ruler warns against corruption committed by high-ranking individuals

TANJUNG MALIM: The Sultan of Perak, Sultan Nazrin Muizzuddin Shah, is concerned about the corruption and criminal breach of trust committed wantonly by highly-educated and high-ranking individuals and on a large scale.

“Allah has stressed that humans should not take for themselves the property of others through methods disallowed by Islamic law.

“It is equally wrong for one to hire false witnesses or give bribes to judges with the intention of influencing a decision to enrich oneself.

“Property acquired through such methods is tantamount to cruelty and oppression of others,” he said at the state-level Maulidur Rasul 1438H celebration here.

On judges, Sultan Nazrin said that a human being, conscious and fearful of God, would realise that his duty was entrusted to him by God.

“A judge should not be so bold as to change the law in his judgment to wrong what is right and to right what is wrong because it is a sin in Allah’s eyes to do so.”

Sultan Nazrin said history had shown many a government and civilisation collapse because of acts of embezzlement and corruption, greed for material possessions and abuse of power.

“In the history of Islamic governments, many among the leaders of the Bani Umaiyyah (Umayyad Caliphate) and Bani Abbas (Abbasid Caliphate) were preoccupied with worldly pleasures and willing to use their wealth to remain in power.”

He said that as followers of Prophet Muhammad, every Muslim should instil in themselves the determination and willpower to be incorruptible and trustworthy.

In Kuala Terengganu, the Sultan of Terengganu, Sultan Mizan Zainal Abidin, urged Muslims to avoid quarrelling among themselves and forming factions, reports Bernama.

He said Muslims should have an open attitude and practise tolerance so they can live in peace with each other, hence receiving the blessings of Allah.

“With the theme of the Maulidur Rasul celebration this year being ‘Islamic Solidarity: The Foundation of Muslim Unity’, it is only apt to use Prophet Muhammad as the best example.

“The Prophet did not use force, but changed people by being exemplary and with the spirit of brotherhood, love and care for the welfare of the community, which led to the formation of a sovereign Islamic community in Madinah.”

He said Prophet Muhammad had left mankind two legacies, namely the Quran and the Sunnah (sayings and teachings of the prophet).

Source: The Star/ANN

Graft probe in Sabah almost done

KOTA KINABALU: The Malaysian Anti-Corruption Commission (MACC) is one step closer to completing its probe on the suspected graft and abuse of power in the Sabah Water Department.

MACC deputy chief commissioner (operations) Datuk Azam Baki said investigators had pored over nearly 12 tonnes of documents and would be submitting the investigation papers to the Attorney-General’s Chambers soon.

He said MACC officials had spent nearly a month analysing 8,000 payment vouchers between 2008 and 2016 from tens of thousands of documents.

The documents were seized from 30 locations around Sabah, including Kota Kinabalu, Tawau, Sandakan and Lahad Datu.

Azam said 28 people including the department’s director and two of his deputies were detained during the course of their investigations since early October.

Also detained were 23 divisional and district engineers and two more individuals who are involved in the case.

MACC also recorded statements from 200 witnesses, Azam added.

He said MACC also seized properties and cash and froze bank accounts, unit trusts and other assets totalling some RM114.5mil within and outside the country.

Azam said 137 MACC officers from headquarters as well as various divisions and states were involved in the investigations.

In the scandal, several Sabah Water Department officials are being investigated over allegations that they abused their power by awarding contracts to 38 companies owned by their families or cronies to siphon off federal funds.

MACC investigators have implicated top department officials in connection with the siphoning of RM3.3bil worth of federal allocations for state rural water projects since 2010.

Azam had been reported as saying that certain individuals in the department may have collected as much as 27% to 30% in kickbacks from the contracts awarded.

MACC investigators are also looking into suspected money laundering activities in their bid to recover some of the RM30mil that has reportedly been stashed in overseas accounts.

By Ruben Sario The Star/ANN

Related:

MACC analyses 12 tonnes of files in Sabah graft probe

Graft probe into Sabah Water Department uncovers another S$10 ...

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Corruption among the privileged rampant! Graft probe in Sabah almost done

Perak Ruler warns against corruption committed by high-ranking individuals

TANJUNG MALIM: The Sultan of Perak, Sultan Nazrin Muizzuddin Shah, is concerned about the corruption and criminal breach of trust committed wantonly by highly-educated and high-ranking individuals and on a large scale.

“Allah has stressed that humans should not take for themselves the property of others through methods disallowed by Islamic law.

“It is equally wrong for one to hire false witnesses or give bribes to judges with the intention of influencing a decision to enrich oneself.

“Property acquired through such methods is tantamount to cruelty and oppression of others,” he said at the state-level Maulidur Rasul 1438H celebration here.

On judges, Sultan Nazrin said that a human being, conscious and fearful of God, would realise that his duty was entrusted to him by God.

“A judge should not be so bold as to change the law in his judgment to wrong what is right and to right what is wrong because it is a sin in Allah’s eyes to do so.”

Sultan Nazrin said history had shown many a government and civilisation collapse because of acts of embezzlement and corruption, greed for material possessions and abuse of power.

“In the history of Islamic governments, many among the leaders of the Bani Umaiyyah (Umayyad Caliphate) and Bani Abbas (Abbasid Caliphate) were preoccupied with worldly pleasures and willing to use their wealth to remain in power.”

He said that as followers of Prophet Muhammad, every Muslim should instil in themselves the determination and willpower to be incorruptible and trustworthy.

In Kuala Terengganu, the Sultan of Terengganu, Sultan Mizan Zainal Abidin, urged Muslims to avoid quarrelling among themselves and forming factions, reports Bernama.

He said Muslims should have an open attitude and practise tolerance so they can live in peace with each other, hence receiving the blessings of Allah.

“With the theme of the Maulidur Rasul celebration this year being ‘Islamic Solidarity: The Foundation of Muslim Unity’, it is only apt to use Prophet Muhammad as the best example.

“The Prophet did not use force, but changed people by being exemplary and with the spirit of brotherhood, love and care for the welfare of the community, which led to the formation of a sovereign Islamic community in Madinah.”

He said Prophet Muhammad had left mankind two legacies, namely the Quran and the Sunnah (sayings and teachings of the prophet).

Source: The Star/ANN

Graft probe in Sabah almost done

KOTA KINABALU: The Malaysian Anti-Corruption Commission (MACC) is one step closer to completing its probe on the suspected graft and abuse of power in the Sabah Water Department.

MACC deputy chief commissioner (operations) Datuk Azam Baki said investigators had pored over nearly 12 tonnes of documents and would be submitting the investigation papers to the Attorney-General’s Chambers soon.

He said MACC officials had spent nearly a month analysing 8,000 payment vouchers between 2008 and 2016 from tens of thousands of documents.

The documents were seized from 30 locations around Sabah, including Kota Kinabalu, Tawau, Sandakan and Lahad Datu.

Azam said 28 people including the department’s director and two of his deputies were detained during the course of their investigations since early October.

Also detained were 23 divisional and district engineers and two more individuals who are involved in the case.

MACC also recorded statements from 200 witnesses, Azam added.

He said MACC also seized properties and cash and froze bank accounts, unit trusts and other assets totalling some RM114.5mil within and outside the country.

Azam said 137 MACC officers from headquarters as well as various divisions and states were involved in the investigations.

In the scandal, several Sabah Water Department officials are being investigated over allegations that they abused their power by awarding contracts to 38 companies owned by their families or cronies to siphon off federal funds.

MACC investigators have implicated top department officials in connection with the siphoning of RM3.3bil worth of federal allocations for state rural water projects since 2010.

Azam had been reported as saying that certain individuals in the department may have collected as much as 27% to 30% in kickbacks from the contracts awarded.

MACC investigators are also looking into suspected money laundering activities in their bid to recover some of the RM30mil that has reportedly been stashed in overseas accounts.

By Ruben Sario The Star/ANN

Related:

MACC analyses 12 tonnes of files in Sabah graft probe

Graft probe into Sabah Water Department uncovers another S$10 ...

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International Anti-Corruption Day, Work with MACC to fight corruption, Malaysians urged

United against corruption for development, peace and security Aerial group photo of staff in Geneva simulating the Sustainable Developme...

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Let us do more against graft, bring corrupt culprits to court fast !

https://en.wikipedia.org/wiki/Sabah_State_Water_Department_corruption_probe

BY now, it’s clear that many ordinary Malaysians have the perception that corruption in this country has degenerated into a hugely disturbing situation.

To many of us, rightly or wrongly, corruption has become an entrenched culture involving many in the political and government circle.

But who would have suspected that a seemingly innocent department like the Sabah Water Department could end up being investigated for such a staggering amount of money, in what is now known as our very own Watergate scandal.

The Malaysian Anti-Corruption Commission (MACC) seized RM114mil worth of assets – RM53.7mil in cold cash stashed in the houses and offices of two senior Sabah Water Department officials on Oct 4.

Many of the department’s staff, apart from the top two officials, are also being investigated for alleged abuse of power and money laundering linked to contracts for RM3.3bil federal-funded projects channelled to the department since 2010.

MACC has traced RM30mil stashed in foreign banks and another RM30mil in 127 land titles for housing, agriculture and commercial purposes.

That’s not all. MACC also seized nine vehicles worth RM2.7mil, an assortment of jewellery worth RM3.64mil and designer handbags with a value of RM500,000.

To many Malaysians, when the topic is corruption, they would think of the police, customs, immigration, council enforcement officers and authorities with the power to arrest someone, to issue approvals or permits.

These authorities have earned such notoriety through mere generalisation or plain prejudice as there are surely many good and honest officials.

And of course, many Malaysians think lowly of high-level politicians, sniggering over their purported wealth even if they have little evidence and information.

The MACC must be commended for its successful investigations into the Sabah Water Department.

It has, in fact, led to loose talk among Sabahans that the MACC need only check the Facebook postings of some staff, even the low ranking ones, of another government department in the state to see the kind of lifestyle led by some of the workers.

There might not be sufficient evidence but the raid on the department will surely encourage more whistle blowers to tip off the MACC.

Malaysia ranked 54 among 168 countries in the Corruption Perception Index (CPI) 2015 with a score of 50 out of 100.

This is a drop from 50 out of 175 countries in the CPI 2014 with a score of 52 out of 100. High scores indicate a less corrupt perception.

Obviously, the 1MDB issue is a major perception issue and has affected the minds of many Malaysians, contributing to the slide in ranking.

In a 2014 news report, it said that the international accounting firm KPMG’s Fraud, Bribery and Corruption Survey 2013 revealed that an overwhelming 90% of business organisations feel that bribery and corruption is necessary to do business in Malaysia at the moment.

Transparency International- Malay­sia’s first ever Malaysian Corruption Barometer (MCB) 2014 recorded that as many as 45% of Malaysians feel political parties are the most corrupt, followed by the police force, then the public and civil servants, the report added.

It is safe to say that such perception among Malaysians have not changed much over the past few years. It has probably gone worse.

There is little doubt that many Malaysians feel, even with the current blitz on corruption, that the actions against the corrupt have not been sufficiently effective.

The tentacles of corruption, to many, has become so prevalent that no sector in government has become immune – that’s the scary perception even if the reality is otherwise.

It has tarnished the image of our institutions and must have affected investors who want to put money in Malaysia, even if we are seen as a country that is business-friendly.

To be fair, much efforts have been taken such as enacting the Whistle Blower’s Act in 2012 and increasing corruption arrests, as well as publishing the names of more than 1,000 corruption offenders on the MACC website.

There has also been a sharp decrease in business licenses and online publication of government contracts.

But one does not need another survey, although the Performance Management and Delivery Unit (Pemandu) has actually carried out one, which showed that a large segment of Malaysians do not believe that enough has been done to combat corruption.

That’s simply because the perception is that actions have only been taken against those at the lower and middle rungs of government.

If the fat cats – or big fishes – are left untouched, it may actually encouraged the bottom to be corrupt as they may think their bosses are dirty anyway, so why shouldn’t they, too, grease their hands to just pay the bills.

It is incredulous that a country like Malaysia, which has becoming more conservatively religious, are not seeing a corresponding decline in corruption.

Our religious leaders, regardless of their faith, seems to be more preoccupied with religious forms and theological aspects, and forgetting that they can be effective tools in the fight against corruption – not just against the takers but givers.

They should spend more time at their sermons, services and prayers to talk about the ills of corruption, among others – and not be too preoccupied with just politics.

More often than not, we hear the open grumbling of businessmen who lament the corrupt practices, which adds to their cost of doing business but if there are no givers, then, there will be no takers.

Never mind, if others want to give.

Let the policeman issue summons instead of offering a bribe to “settle it”.

If we give, why then are we still complaining about dirty cops?

If we do not do something more resolute now, the young will soon see corruption as an acceptable culture.

If we remember, in 2007, the majority of 1,800 university students interviewed felt it was acceptable to give or take bribes.

Surely, this is troubling. Have we come to this level where many of us can no longer differentiate between right and wrong?

It’s time to wake up, don’t let our beloved Malaysia go down the drain.

On The Beat By Wong Chun Wai The Star

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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  https://en.wikipedia.org/wiki/Sabah_State_Water_Department_corruption_probe   Malaysia still suffers from corporate scandal after ...

Let us do more against graft, bring corrupt culprits to court fast !

https://en.wikipedia.org/wiki/Sabah_State_Water_Department_corruption_probe

BY now, it’s clear that many ordinary Malaysians have the perception that corruption in this country has degenerated into a hugely disturbing situation.

To many of us, rightly or wrongly, corruption has become an entrenched culture involving many in the political and government circle.

But who would have suspected that a seemingly innocent department like the Sabah Water Department could end up being investigated for such a staggering amount of money, in what is now known as our very own Watergate scandal.

The Malaysian Anti-Corruption Commission (MACC) seized RM114mil worth of assets – RM53.7mil in cold cash stashed in the houses and offices of two senior Sabah Water Department officials on Oct 4.

Many of the department’s staff, apart from the top two officials, are also being investigated for alleged abuse of power and money laundering linked to contracts for RM3.3bil federal-funded projects channelled to the department since 2010.

MACC has traced RM30mil stashed in foreign banks and another RM30mil in 127 land titles for housing, agriculture and commercial purposes.

That’s not all. MACC also seized nine vehicles worth RM2.7mil, an assortment of jewellery worth RM3.64mil and designer handbags with a value of RM500,000.

To many Malaysians, when the topic is corruption, they would think of the police, customs, immigration, council enforcement officers and authorities with the power to arrest someone, to issue approvals or permits.

These authorities have earned such notoriety through mere generalisation or plain prejudice as there are surely many good and honest officials.

And of course, many Malaysians think lowly of high-level politicians, sniggering over their purported wealth even if they have little evidence and information.

The MACC must be commended for its successful investigations into the Sabah Water Department.

It has, in fact, led to loose talk among Sabahans that the MACC need only check the Facebook postings of some staff, even the low ranking ones, of another government department in the state to see the kind of lifestyle led by some of the workers.

There might not be sufficient evidence but the raid on the department will surely encourage more whistle blowers to tip off the MACC.

Malaysia ranked 54 among 168 countries in the Corruption Perception Index (CPI) 2015 with a score of 50 out of 100.

This is a drop from 50 out of 175 countries in the CPI 2014 with a score of 52 out of 100. High scores indicate a less corrupt perception.

Obviously, the 1MDB issue is a major perception issue and has affected the minds of many Malaysians, contributing to the slide in ranking.

In a 2014 news report, it said that the international accounting firm KPMG’s Fraud, Bribery and Corruption Survey 2013 revealed that an overwhelming 90% of business organisations feel that bribery and corruption is necessary to do business in Malaysia at the moment.

Transparency International- Malay­sia’s first ever Malaysian Corruption Barometer (MCB) 2014 recorded that as many as 45% of Malaysians feel political parties are the most corrupt, followed by the police force, then the public and civil servants, the report added.

It is safe to say that such perception among Malaysians have not changed much over the past few years. It has probably gone worse.

There is little doubt that many Malaysians feel, even with the current blitz on corruption, that the actions against the corrupt have not been sufficiently effective.

The tentacles of corruption, to many, has become so prevalent that no sector in government has become immune – that’s the scary perception even if the reality is otherwise.

It has tarnished the image of our institutions and must have affected investors who want to put money in Malaysia, even if we are seen as a country that is business-friendly.

To be fair, much efforts have been taken such as enacting the Whistle Blower’s Act in 2012 and increasing corruption arrests, as well as publishing the names of more than 1,000 corruption offenders on the MACC website.

There has also been a sharp decrease in business licenses and online publication of government contracts.

But one does not need another survey, although the Performance Management and Delivery Unit (Pemandu) has actually carried out one, which showed that a large segment of Malaysians do not believe that enough has been done to combat corruption.

That’s simply because the perception is that actions have only been taken against those at the lower and middle rungs of government.

If the fat cats – or big fishes – are left untouched, it may actually encouraged the bottom to be corrupt as they may think their bosses are dirty anyway, so why shouldn’t they, too, grease their hands to just pay the bills.

It is incredulous that a country like Malaysia, which has becoming more conservatively religious, are not seeing a corresponding decline in corruption.

Our religious leaders, regardless of their faith, seems to be more preoccupied with religious forms and theological aspects, and forgetting that they can be effective tools in the fight against corruption – not just against the takers but givers.

They should spend more time at their sermons, services and prayers to talk about the ills of corruption, among others – and not be too preoccupied with just politics.

More often than not, we hear the open grumbling of businessmen who lament the corrupt practices, which adds to their cost of doing business but if there are no givers, then, there will be no takers.

Never mind, if others want to give.

Let the policeman issue summons instead of offering a bribe to “settle it”.

If we give, why then are we still complaining about dirty cops?

If we do not do something more resolute now, the young will soon see corruption as an acceptable culture.

If we remember, in 2007, the majority of 1,800 university students interviewed felt it was acceptable to give or take bribes.

Surely, this is troubling. Have we come to this level where many of us can no longer differentiate between right and wrong?

It’s time to wake up, don’t let our beloved Malaysia go down the drain.

On The Beat By Wong Chun Wai The Star

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

Related posts:

 Malaysia slides in global Corruption perception index

 Mar 10, 2016 … KUALA LUMPUR: Malaysia’s ranking dropped four places in the Corruption Perceptions Index (CPI) last year. The index, released by …

Ma'sia's skilled labour shortage, engineers not take up challenges, graduates can't solve problems

More trained workers needed to attract new capital investments Yap says manufacturers have to source for high-quality technology from pla...

Why we fail at corporate governance with corrupt officials?

  https://en.wikipedia.org/wiki/Sabah_State_Water_Department_corruption_probe   Malaysia still suffers from corporate scandal after ...

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MINISTER in the Prime Minister’s Department Datuk Paul Low recently told the Dewan Rakyat that the Malaysian Anti-Corruption Commission…

Sabah’s watergate scandal unfolds, engineers nabbed, civil service back in vogue 

 Oct 15, 2016 … Sabah’s watergate scandal unfolds, engineers nabbed, civil service back in vogue …. Civil service back in vogue – for the wrong reasons.

  Water fiasco: RM114 million seized from Sabah water officials

https://youtu.be/01stOYgM9x0 It was a record haul by the Malaysian Anti-Corruption Commission – RM114mil seized from two top officer…

No water but officials flush with funds: abuse of power, nepotism, cronyism, bribery and money laundering 

Jabatan Air Negeri Sabah – http://malaysianlogo.blogspot.my/2014/06/jabatan-air-negeri-sabah-sabah.html KOTA KINABALU: Everywhere in Sab…

 

Water theft: 60% of RM3.3bil project allocation stolen by senior officers

  Jabatan Air Negeri – Customer Service How the millions were stolen? 1. Contracts broken down to small packages of RM100,000 ea…

 

Water corruption, an integrity crisis is disruptive, debilitating, damaging and hurting us

Water Corruption | SSWM http://www.sswm.info/content/water-corruption The Star Says: A crisis of integrity and a lesson to be learnt 

Why we fail at corporate governance with corrupt officials?

  https://en.wikipedia.org/wiki/Sabah_State_Water_Department_corruption_probe   Malaysia still suffers from corporate scandal after ...

Why we fail at corporate governance with corrupt officials?

https://en.wikipedia.org/wiki/Sabah_State_Water_Department_corruption_probe

Malaysia still suffers from corporate scandal after another, says Musa

PETALING JAYA: Malaysia is great at formulating legislation for corporate governance but lacks the ability to implement and enforce these, said former deputy prime minister Tun Musa Hitam (pic).

“As far as I can remember, Malaysia is the leading developing country that currently occupies the top half of the list in formulating legislation, rules and regulations for corporate governance.

“But when it comes to implementation and enforcement, we occupy the lower half of the list,” said Musa, who is also World Islamic Economic Forum chairman. Delivering his keynote address at the Women’s Institute of Management’s Conference on Integrity and Corporate Governance, Musa said that in the past, government and corporate leaders were required to attend a course on corporate governance.

“It is quite obvious that these efforts are to no avail and the programme seems to have been scrapped.

“After all our training, Malaysia still suffers one corporate scandal after another,” he said.

The country’s weakness in corporate governance lay in its inability to enforce the rules and was the major cause of its many scandals, he said.

Musa said that good governance extended to areas relating to corruption, abuse of power, accountability, application of corporate social responsibility (CSR), transparency and protecting shareholder interest.

“If you ensure transparency and accountability in decision making, apply CSR and care about shareholder interest, then you are practising good corporate governance,” he said.

Good corporate governance, Musa pointed out, could only happen if all the laws were implemented without fear or favour.

“This is most crucial for good corporate governance and it is up to the chairman and board of directors to administer this,” added Musa.

Another important ingredient was leadership with integrity, he said.

“Leadership by example produces good governance and in my experience, if this is practised, even the most influential person can be persuaded to act in the broader interest of the corporation and shareholders.” By Jo Timbuong The Star

Corporate governance – a shared responsibility

TUN Musa Hitam was spot on when he said at a conference on Monday that a company’s directors and managers were practising good corporate governance when they ensured transparency and accountability in decision making, applied corporate social responsibility, and cared about the shareholders’ interests.

These are indeed essential ingredients if we want our companies to be run well.

And Musa was right in pointing out that good corporate governance could only happen if the laws were implemented without fear or favour.

This matters because corporate governance thrives in an environment in which the rules are clear and robust, and the regulators are firm and consistent.

However, corporate governance is not just about complying with the letter of the law. It is also about directing and controlling a company through practices, structures and processes.

Many of these elements are voluntary; a thin line separates government oversight and the straightjacketing of business with an overkill of statutory prescriptions.

For example, most experts on corporate governance agree that the roles of chief executive officer and chairman of the board ought to be separated so as to avoid concentrating a lot of decision-making power in one person.

And yet, it is perfectly legal in Malaysia for an individual to wear these two hats at the same time. It is the same in some developed countries.

It remains a hot topic, but it is clear that most regulators continue to be reluctant to outlaw this practice of combining CEO and chairman duties.

The biggest challenge is to persuade company stewards to embrace the principles of corporate governance without being prodded by the authorities and their volumes of laws.

For this to happen, the directors and managers have to be convinced that good corporate governance adds significant value to their companies.

There are many studies that have concluded exactly that, but these findings mean little if there is still the perception that most people do not care about corporate governance.

Let us look at the listed companies, whose value is measured constantly in the stock exchange as investors buy and sell the companies’ shares.

On paper, a company with a poor track record in corporate governance would have trouble getting attention in the stock market.

And yet, we have frequently seen such companies at the centre of feeding frenzies sparked by speculation that the share prices will soar for whatever reason. This is not a great advertisement for corporate governance.

Nor is it encouraging that shareholder activism in Malaysia is limp. Many of those who own small amounts of shares in a company are often indifferent to how the company is performing, preferring instead to focus on the share price.

And when they do turn up at the shareholder meetings, it is seldom to engage with the board and management and to ask tough business questions.

The regulators and company stewards alone cannot push the corporate governance agenda.

Investors and other stakeholders too must show that they appreciate the fruits of good corporate governance, instead of complaining bitterly only after companies have collapsed and huge investments have gone down the drain. The Star Says

A-G: GLCs should adopt best practices

 

Praise and encouragement: Ambrin speaking during the WIM Conference on Integrity and Governance at the One World Hotel in Petaling Jaya.

“In theory, the country’s best practices could be easily adopted wholly or in part by most GLCs. But in reality this is not always the case as you can see from our audit findings with regard to the business performance and corporate governance of these GLCs.

“If guidelines are not being adhered to or given exemptions, it may severely compromise the governance and expose the companies to risk of fraud and corruption,” he said in a keynote address at the Women’s Institute of Management (WIM) conference on integrity and governance yesterday.

The 2015 Auditor-General Report (Series 2) was released two days ago, in which issues like poor management of the Cooking Oil Stabilisation Scheme and weaknesses in the management of medicinal supplies at health clinics nationwide were highlighted.

On the issue of GLCs that were not doing well, Ambrin said these companies were supposed to contribute to wealth creation for the government and act as a trustee to the public.

“Instead, they might become a burden, asking for bailouts and additional grants or to convert their loans to equity so they can continue to exist as a going concern, but to whose benefit really, one might ask,” he said.

The Auditor-General also observed that based on his audit experience, there were times where a GLC’s board of directors had been conveniently bypassed on major decisions.

He added that companies should have at least some, if not all, the best practices required to ensure integrity and good governance in their organisation.

“For example, I am very impressed with Khazanah, they have a high standard of governance and are very professional, so to me they are a model GLC.

“Of course we don’t expect smaller companies to have the full-scale best practices that they have, but at least have some elements like a standard operating procedure, internal audit committee, and a good board of directors,” he said.

Former Law Minister Datuk Zaid Ibrahim said merely having policies for integrity and good governance in place were not enough.

“Malaysians need to talk about it and live it in order to move a step ahead,” said Zaid who was a panellist at the conference.

He said putting integrity into action may be challenging because of restrictive laws like the Official Secrets Act but that shouldn’t stop people from doing so.

Zaid said if Malaysians were committed to the principles of integrity and good governance, they needed to be courageous in their cause.

“You cannot defend integrity without courage but be prepared to pay a price for it. You might not get promoted, or get the title, or the contract you want but integrity needs to be cultivated, no matter the price,” he said.

Zaid also said the courage to fight for integrity must come from within and individuals cannot expect the higher-ups to lead the way.

“You must own it and start with yourself,” he said, adding that the more people embrace the idea of integrity, the higher the chance of creating a society driven by morals and truth.
-  By LOSHANA K SHAGAR and JO TIMBUONG The Star

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