Anti-graft NGO wants harsher penalties for white collar crimes

Putrajaya should immediately amend relevant laws to tackle white-collar crimes such as graft by imposing harsher punishments, said Transparency International Malaysia (TI-M) president Datuk Akhbar Satar.

Akhbar, in response to Prime Minister Datuk Seri Najib Razak's proposal for heavier penalties to givers and takers of bribes, said white collar crimes are more brutal than violent crimes because actions of one or few corrupt individuals can affect the livelihood of thousands.

"The punishment must be a deterrent so that offenders will not repeat the act. The implementation of harsher punishments would most likely reduce corrupt activities in this country.

"Surveys indicate that both the public and offenders consider prison to be the most severe or effective punishment of criminal behaviour including white collar criminals. In China, white-collar criminals can be given the death penalty," he said in a statement today.

Earlier this month, Najib had described corruption as the root cause of many problems, ranging from environmental degradation, citing the illegal farming issues in Cameron Highlands, to illegal activities such as gambling.

He had urged for stricter action against those who gave kickbacks, including by private companies, while political parties should take a common stand to address the issue.

Akhbar said Putrajaya should move ahead with the necessary amendments to increase the penalties immediately and institute other amendments or new laws as needed.

"It is worth to amend the existing law to provide a more severe punishment by at least inserting Section 16 of the Anti-Corruption Act 1997 to replace the penalty in the MACC Act 2009.

"By reinforcing this clause, anyone found guilty will face a prison sentence of no less than 14 days to a maximum of 20 years in prison," he said.

The Anti-Corruption Act (ACA) had been repealed following the enactment of the Malaysian Anti-Corruption (MACC) Act in 2009.

Under the old ACA, there was a provision of a jail term between 14 days and 20 years, as well as a fine of at least five times the bribe amount, or RM10,000 whichever higher for those found guilty of graft.

In contrast, those found guilty of corruption under the current MACC Act will be subjected to jail of not more than 20 years and a fine of at least five times the bribe amount, or RM10,000 whichever higher.

"Therefore, the ACA Act 1997 actually carries a more severe penalty," he said.

He said even offences related to criminal breach of trust carries a heavier penalty under the Penal Code, whereby those found guilty will be subjected to jail time of between two and 20 years, as well as whipping and a fine.

As for the penalty for cheating, those found guilty will be jailed between one and 10 years, whipping and a fine.

Akhbar said TI-M also supports the proposed amendment to the MACC Act to include corporate liability offences.

He said once the amendment comes into effect, companies can be held responsible if their employees commit bribery, unless they can prove that they had taken measures to prevent it.

Currently under the MACC Act, companies are not held liable for graft or corruption, as it is individuals, such as employees, who can be charged for bribery offences under the Act.

"There is already in the international arena the US Foreign Corrupt Practices Act and the UK Anti-Bribery Act, both of which have extra-territorial jurisdiction and hold corporations liable for corrupt acts of their employees and their subsidiaries’ employees.

"Malaysia is already behind on this and following in these footsteps will be a good move in the right direction," he said.

In referring to KPMG Fraud, Bribery and Corruption Survey 2013 of which 90% of respondents stated that bribery and corruption is the major problem for businesses in Malaysia, Akhbar said corporate liability has to be extended to cover the private sector so that companies will be taking responsibility for offences committed by its employees and sensitive in ensuring their business entities are transparent and corruption-free.

"Such an amendment would also strongly encourage companies to immediately look into their internal control policies to prevent bribes and ensure that there is comprehensive training programmes given to staff on ethics and integrity and promote good governance," he added. – December 23, 2014.

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