KUALA LUMPUR: The enforcement of a new provision of the Malaysian Anti-Corruption Commission (MACC) Act 2009 regarding graft offences involving commercial organisations comes into effect today.
The Malaysian Anti-Corruption Commission (MACC), in a statement today, said the new provision, under Section 17A of the MACC Act 2009 (Amendment 2018), was enforced following a federal gazette on May 27, which was issued on the authority of Minister in the Prime Minister's Department (Parliament and Law) Datuk Takiyuddin Hassan.
"The new provision, which is known as corporate liability is to encourage business activities to be carried out with integrity and to promote good governance practices in organisations; it is not done merely to punish commercial organisations.
"Fundamentally, under Section 17A of the MACC Act 2009 (Amendment 2018), commercial organisations are also liable and they can be punished if their employees or associates are involved in corruption crimes.
"The commercial organisation could be considered liable in the event when its management or representative is aware of the corrupt act committed by the employee or associate.
"If a commercial organisation is convicted, the penalty under Section 17A (2) is a fine of no more than 10 times of the amount of bribe received or RM1 million, whichever is higher, or 20 years jail sentence or both.
"However, the commercial organisation is allowed to defend itself to prove that it had 'adequate procedures' in place to prevent corruption in their operations or businesses," it said.
Parliament had approved the amendment of the act on April 5, 2018, and it was then gazetted on May 4 this year.
The statement said the government had also allowed for a two-year postponement of enforcement of the new provision to provide time for commercial organisations to prepare for it.
The public could obtain more information on the new provision under the MACC Act by surfing the MACC official website at https://www.sprm.gov.my/. The provision's guidelines are available on http://giacc.jpm.gov.my/garis-panduan-tatacara/.