THE move of the government to make chief executive officers of government-linked companies (GLCs) and government-linked investment companies (GLICs), as well as members of the judiciary to declare their assets to the Malaysian Anti-Corruption Commission (MACC) is a wise measure and will open up a new perspective in the country.
An effective asset declaration system should cover all members of the executive, legislative, judiciary and also and members of the bureaucracy.
The current asset declaration mechanism for members of the government administration, members of parliament (MPs), and senators would also be enhanced by the MACC, and would be strengthened to boost the government's credibility and integrity. The government should also include State Assemblymen (ADUN) in the list.
A new code of ethics for MPs would also be introduced under the Houses of Parliament (Privileges and Powers) Act 1952, considering the principles of the separation of powers between the executive and legislative branches.
This is a valid demand because allocation of resources and their salaries, allowances and perks are paid from tax revenues.
In this regard is noted that members of parliament were ranked as the most corrupt among the top six key institutions in Malaysia, ahead of the police and government officials, business executives, judges, and magistrates based on the 2020 TI’s General Corruption Barometer (GCB).
Hence, it is for them to improve governance and dispel the negative perceptions against them. In this context, the importance of declaring their assets and source of income is clear.
In 2019, the former MACC deputy chief commissioner (Prevention) Datuk Seri Shamshun Baharin Mohd Jamil noted that, the Dewan Rakyat unanimously approved a motion to make it compulsory for all MPs to declare their assets to the Speaker of the Dewan Rakyat, and for a copy of the declaration to be lodged with the MACC.
However, MACC only acts as the 'custodian' (guardian) of the information. The Commission will then display it on the Assets Declaration Portal within three months after it is declared (https://mydeclaration.sprm.gov.my/).
As this juncture, Datuk Seri Shamshun stated that there is no specific law nor clear punishment for those MPs who do not comply. Further, the MACC is not empowered to conduct any verification on the information contained in the declaration documents received.
Investigations are only conducted by the MACC on individuals who are seen as living extravagant lifestyles beyond their income level under Section 36 of the MACC Act 2009. He suggested Malaysia should follow the lead of neighbouring countries such as Indonesia and Thailand which already have legal provisions in place pertaining to assets declaration.
Any false declaration can also be investigated under Section 3 of Act 783 and Section 199 of the Penal Code and if the civil servant is convicted, he or she would be imprisoned for a term not exceeding three years and be subject to monetary penalty.
With regard to civil servants, their respective assets declaration is currently verified internally. The Institute for Democracy and Economic Affairs (IDEAS) suggested that this current system should be changed and that the MACC should be given the mandate to verify and monitor asset declarations.
There is a growing international trend that requires public officials to honestly declare their assets and income, and also increasingly the assets and incomes of spouses, children and immediate family members. This is a practice in Thailand, Indonesia and Philippines.
After all, there is no beneficiary ownership law in Malaysia to identify who is the owner behind the companies.
The main aim of the declaration of assets is to prevent corruption and to detect misappropriation of public funds. This measure increases transparency and trust in the public administration.
Further these measures seek to avoid situations where there are conflicts of interest, illicit enrichment and aids in the detection of unexplained wealth.
No one is above the law. Published information on a person’s assets allows civil society to hold leaders to account.
The declaration of assets should be done before and after the holding of a position in the office, with net worth analysis conducted periodically – advisable to do it once every 2 years.
The public declaration of assets would not bring about any harm as perceived by many, as the names of the top 10 most riches people in Malaysia are often publicized in the media and none of them have faced any trouble in declaring their wealth.
There should be nothing to hide on their part if they are clean and honest. Clarifying the source of the gained personal wealth can moreover increase the people’s trust prevent cases of false accusations.
Compelling all the three branches of government to declare their sources of income, assets, debts and financial interests is a huge step forward in the government’s efforts to maintain, uphold the principles of honesty, transparency and to take a stand for integrity and against corruption.
DATUK SERI AKHBAR SATAR
President, Malaysian Association of Certified Fraud Examiners
Akhbar Satar
Thu Sep 22 2022
Ismail Sabri recently announced that chief executive officers of government-linked companies (GLCs) and government-linked investment companies (GLICs) as well as members of the judiciary must declare their assets to the MACC. - BERNAMA
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