New provision to tackle corruption in commercial organisations

New provision to tackle corruption in commercial organisations

PUCHONG: The Malaysian Anti-Corruption Commission (MACC) will enforce the new provision in the MACC Act 2009, effective June 2020, to enable commercial organisations involved in corruption to prosecuted.

MACC deputy chief commissioner (operations) Datuk Seri Azam Baki said the enforcement of Section 17A of the MACC Act was to fulfil the international requirements under Article 26 of the United Nation Convention Against Corruption (UNCAC), which refers to Liability of Legal Persons.

He also said before the provision came into existence, the MACC Act only focused on the prosecution of a natural person, which is the individual involved in corruption.

“As such, Section 17A was enacted to enable companies involved in corruption activities to be subjected to legal action.

“Section 17A was passed in Parliament on April 5, 2018, which focuses on corruption by commercial organisations,” said Azam.

Azam said under the new provision, a commercial organisation could be prosecuted if a person associated with the organisation committed the corrupt act to enable the organisation to acquire or retain a contract, or interest.

“At the same time, the provision requires, as a precautionary measure, the commercial organisation to create policies and efforts to prevent corruption in the organisation,” he said.

Azam added that in the drafting of the provision, the MACC had referred to various legal sources, both domestic and overseas.


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