PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC) has called for all state governments to develop standard operating procedures specifically for Rare Earth Elements (REE) operations.
MACC Chief Commissioner Tan Sri Azam Baki said that based on their previous investigations, there wasn't a proper REE SOP which could lead to illegal mining and theft.
Azam said the current SOP needs improvement as the existing SOP for issuing mineral licences was quite specific. He cited an example of when issuing mining licences, specific minerals were listed, but REE was not included.
"It's up to the state government to decide whether to permit it (REE extraction) However, many states may not have a complete SOP for the use of such minerals.
"Let me give another example, like bauxite. Initially, there wasn't a SOP for bauxite either. The SOP was only established later, especially in terms of issuing mining licences.
"Tomorrow, we might discover a new mineral, while the current SOP only covers existing minerals such as gold, tin, iron, bauxite and others. We don't yet know if new minerals like REE will be discovered," he told reporters after the 2024 state-level Agency Governance Improvement Appreciation Ceremony at the MACC headquarters.
Azam said the SOP should also involve the federal government, and relevant ministries including agencies such as the Customs Department, especially on taxation issues. Azam said without the SOP, anyone could mine without permission, leading to illegal activities like theft and misuse.
"Therefore, a clear SOP is necessary, which could also involve Environmental Impact Assessment (EIA) reports. All these elements need to be clarified.
"This is based on my observations and our experience in the MACC," he said.
Earlier in his speech at the event, Azam cited a case last year involving the misappropriation of REE which was partly due to weak monitoring and the absence of an SOP related to REE enforcement.
He said as such it was crucial for organisations to review and improve existing practices, systems and procedures to close off opportunities for corruption.
"Furthermore, the use of systems and technology can enhance organisational governance. "In relation to this, the Governance Investigation Division at the MACC headquarters, along with the Governance Investigation Units at the state-level MACC offices, are ready to assist any organisation in improving their practices, systems and procedures.
"As of the third quarter of 2024, a total of 422 recommendations for improvement resulting from governance investigations conducted by the MACC have been provided to agencies. Of this number, 229 recommendations, or 54.3 per cent, have been successfully implemented," he said.
Azam also awarded the Polytechnic and Community College Education Department and Kedah State Land and Mines Office with this year's state-level Agency Governance Improvement Award.
He said the agencies had met established criteria, including the full implementation of improvement recommendations within two years following the MACC's suggestions, publicity related to the improvements, positive impacts from the improvements made, and a record free from major corruption issues during the evaluation period.