Legal Requirement and Compliance to Anti-Bribery Management System
Malaysian organizations are not doing enough to protect themselves. Reported incidents of bribery and corruption have increased every year which concerning that Malaysian organizations appear to be ambivalent about addressing the risks of bribery and corruption.
The non-legal definitions of corruption can be categorized as below;
- The abuse of entrusted power for private gain
- Misuse of public power, office or authority for private benefit
- A civil servant abuses his authority in order to obtain an extra income from the public
The corruption can be in forms of bribery, embezzlement, fraud, extortion, favouritism, and nepotism. The bribery offences can be described as accepting, receiving, soliciting, demanding or attempting to obtain gratification. Under Section 16 & 17, the Malaysian Anti-Corruption Commission (MACC) Act 2009 (amendment 2018), the bribery described as a giving/offering gratification. While in Section 165, Penal Code mentioned that the bribery is receiving/obtaining valuable thing without consideration. The bribery can be manifested in many ways such as money, donation, gift, entertainment, sponsorship, discount, commission, etc.
Section 17A has been added inside the MACC Act to add the Offence by the Commercial Organization. This Amendment Act was passed by the Malaysian Parliament on 4th April 2018 with Royal Assent being granted on 27th April 2018. However, the Amendment Act will come into effect on 1st June 2020. Prior to the Amendment Act, only individuals were liable for committing bribery offences under the MACC Act 2009. Although an employee or director of the company could be punished for the crime, the company itself did not suffer any penal consequences. In fact, in many cases from a business point of view, the company benefited from the corrupt act committed by the individual.