SC to work on anti-corruption plan

by RAHIMI YUNUS/ pic by MUHD AMIN NAHARUL

THE Securities Commission Malaysia (SC) is working on an anti-corruption action plan, comprising corporate liability provisions, as its review found that only 59% of listed companies in the country have an anti-corruption policy.

The SC said the Cabinet Special Committee on Anti-Corruption (JKKMAR) has approved its recommendations to require listed companies to put in place anti-corruption measures and for the former to develop a framework to promote effective discharge of directors’ responsibilities.

According to the SC, it had presented its action plan to the JKKMAR chaired by the Prime Minister (PM) Tun Dr Mahathir Mohamad on July 18, 2019, with recommendations to strengthen the standards of corporate governance to prevent corruption, misconduct and fraud.

“In view of the coming-into-force of the corporate liability provision in the Malaysian Anti-Corruption Commission (MACC) Act 2009 in June 2020, the SC urges listed companies

to prepare themselves and take the necessary measures to establish an effective anti-corruption framework in line with the Guidelines on Adequate Procedures,” it said in a statement yesterday.

The statutory body under the Finance Ministry said JKKMAR also agreed that several other measures proposed by the SC are to be discussed further with the Debt Management Office.

It said the anti-corruption action’s main objectives are to support the National Anti-Corruption Plan (2019-2023) and with the view to improve Malaysia’s ranking in the biennial Corporate Governance Watch survey by the Asian Corporate Governance Association.

The Guidelines on Adequate Procedures was released on Dec 10, 2018, by the PM’s Department pursuant to Subsection (5) of Section 17A under the MACC Act 2009.

The guidelines assist commercial organisations to understand the adequate procedures to be implemented to prevent corrupt practices in their business activities.