Annual Report 2010

Annual Report 2010

2010 Annual ReportMalaysian Anti-Corruption CommissionINDEPENDENTThe MACC is independent in performing anddischarging its duties without having to refer to anygroup or party.TRANSPARENTThe MACC activities are monitored and dulyadvised by five oversight external bodies, followedby the presentation of its activities report to theParliament.PROFESSIONALThe Officers of the MACC are bound by its ownlegal perimeters and code of ethics. They areequipped with the necessary skills and knowledgein executing their duties in an effective, competentand creative manner.i

2010 Annual ReportMalaysian Anti-Corruption CommissionForewordCHIEF COMMISSIONER OF MACCAssalamualaikum warahmatullaahi wabarakaatuh and greetings.The task of building high moral standing and integrity of a nation is not an easy task.To do it successfully, that is, to fight corruption and ward off existing negativeperceptions as well as boost the country’s standing in the international scene requiresthe concerted efforts of all Malaysians and the involvement of all levels of society.The responsibility for eradicating corruption should not be placed wholly upon the MACCas if the Commission is solely and entirely responsible for the task. Fighting corruption isa responsibility that should be shared amongst all parties and not directed according to aparticular race, religion, culture, age or economic group. The notion that eliminatingcorruption is the sole responsibility of the MACC and no one else’s serves to hamperthe fight.The fight against corruption should not be based on ‘who’ the person is, and must bepursued regardless of the stature of the individual. We need to keep this in mind as toppriority when we combat the ‘mammoth beast’ in earnest, with all the power, ability andstrength of the law because failure is not an option. We are only too aware that failurecan bring about severe and dire consequences to the future of the next generation.3

INDEPENDENT • TRANSPARENT • PROFESSIONALCorruption involves the question of an individual’s integrity and violation of the law.What should be combated is the perpetration of the crime itself, rather than the partyentrusted to fight corruption. This is in fact, one of the challenges facing the MACC withthe existing perception being unfavourable towards the Commission. Notwithstanding,for the year 2010, the MACC launched a new tagline, namely, “Let’s Make A Difference:Fight CORRUPTION” and invited the entire community to join in its fight against the‘real’ enemy, corruption.INDEPENDENT, TRANSPARENT AND PROFESSIONALISMThe biggest challenge faced by the MACC in the year 2010 was to prevail in the eyes ofthe public as being independent, transparent and professional in its efforts to combatcorruption. This was aligned to the MACC 2010 Aspiration of ‘Strengthening confidenceand enhance domestic and international perception on the effectiveness of the MACCin combating corruption based on the principles of independence, transparency andprofessionalism’. However, as expected, this was easier said than done owing to the factthat the MACC is still plagued by the long-standing negative connotations attached to theAnti-Corruption Agency; legal jurisdictions; bias and prejudice over outstanding inquestsand the persisting negative perceptions created by ambiguous and damaging statementsof parties bearing own personal agendas.For the MACC Aspiration to be fully realized, it requires careful planning as well as specificinitiatives, actions and effective preventive measures that best reflect these principles. Inaddition to the effort of increasing public confidence towards the Commission, a toughchallenge awaits the personnel of the Commission, which is to ensure that it needs notonly to be seen, but be heard by all levels of society. Thus, the Commission embarked on athree-pronged strategy, namely, detection and investigation, monitoring and consulting;communication and education.The establishment of the MACC is supported by five external oversight bodies set upadministratively and by legislative. These five entities namely, the Anti-CorruptionAdvisory Board (ACAB), Special Committee on Corruption (SCC), the ComplaintsCommittee (CC), Operations Review Panel (ORP), and the Consultation and CorruptionPrevention Panel (CCPP) are responsible for ensuring that the MACC performs its dutiesin an independent, transparent and professional manner through the participation ofcivil society. These entities also perform as a check and balance mechanism in ensuringthat the MACC acts in accordance to its designated legal requirements, national andsocietal aspiration.4

2010 Annual ReportMalaysian Anti-Corruption CommissionThe MACC appreciates the roles of the external oversight bodies in monitoringduties performed by the MACC are in line with the determined legislative andadministrative jurisdictions. Constructive views and suggestions provided by themembers of the Board / Committee / Panel provide strength and moral support to theMACC in facing challenges in order to work towards achieving its aspirations.History, for the very first time on 28 April 2010 was created when the MACC submittedits annual report to the SCC which was appointed by the Yang di-Pertuan Agongconsisting of the Members of Parliament. In accordance to the provisions of the law, theCommission also has to clarify and explain matters raised by the SCC members. This wasthen followed by the submission of the SCC report on the discharge of their functions tothe Prime Minister who had after that laid a copy of the annual report before eachHouse of Parliament on 13 July 2010. The submission of its Annual Report and thethorough clarifications and explanations session to the SCC, proves that the Commission’sindependence in fulfilling the mandate given to them.MACC ENFORCEMENT AND OPERATIONSDuring the year 2010, a total of 1,220 (21.6%) Investigation Papers were openedfrom the 5,646 reports received containing element of corruption. This percentagerepresents an increase of 29.9% in comparison to the Investigation Papers openedin year 2009. Of these, 900 (73.8%) Investigation Papers were completed in thecurrent year, compared to 67.4% in the year 2009. Besides the increase in thenumber of Investigation Papers completed, the increment of 6.4% upon thecompleted Investigation Papers reflects the MACC’s positive progress in its efficiencytowards the completion of the investigations undertaken.The MACC realizes that the community in general expects immediate action is takenon cases that are categorized as high-profile and of public interest. The MACC alsotakes up proposals outlined in the National Key Result Areas (NKRA) in which grandcorruption cases have to be given special focus in order to increase public confidencetowards the MACC. As such, in the year 2010, the MACC established a Special OperationsDivision to handle such cases of importance. This division comprises of the MACC Officersas well as officers possessing expertise in specialized areas engaged from outside of theCommission. This new approach has yielded results in which several high profile cases suchas the one on Sime Darby Bhd, were swiftly brought to court and the investigations intomost of these cases took merely less than 3 months.5

INDEPENDENT • TRANSPARENT • PROFESSIONAL“a total of 944 arrests were made making itthe highest number ever in the history ofanti-corruption efforts in Malaysia.“During the year 2010, the MACC also focused on cases linked to syndicated corruptionsuch as illegal sand mining and smuggling activities, illegal logging, illegal immigrationand abuse of subsidized diesel. These under investigations activities involved not onlythe loss of hundreds of million Ringgit in revenue and royalties to the nation but had alsocaused irreparable destruction to the environment and threatened national security.Throughout 2010, a total of 944 arrests were made making it the highest numberever in the history of anti-corruption efforts in Malaysia. The number of arrests saw anincrease of 444 (88.8%) arrests, or compared to only 500 arrests made in the year 2009.From the total, 293 (31.0%) arrests involved public officials, 102 (10.8%) of those fromprivate sector, 545 (57.8%) involving members of the public and four (0.4%) were amongthe members of political parties. The significant increase in arrests can be attributed to thecampaign launched by the Chief Secretary to the Government of Malaysia on 26 April 2010called “Restrain from Accepting : Fight Against Bribe Givers”. Subsequently, 414 (43.8%)arrests were made contributing to the total number of arrests in the year 2010.A total of 381 individuals were charged in court during the year 2010. This figure reflectsan increase of 207 (119.0%) individuals charged over the previous year. Those charged incourt comprised of 131 (34.4%) public officials, 56 (14.7%) members from the privatesector, 193 (50.7%) involving members of the public and one (0.2%) former ChiefMinister. The conviction rate of cases during the initial trial stages is also seen to risefrom 64.4% in 2009 to 71.0% during the year under review. It is also interesting to notethat heavier sentences were being meted out by the Courts throughout the 2010over sentences compared to the ones imposed in year 2009.6

2010 Annual ReportMalaysian Anti-Corruption CommissionPREVENTION AND COMMUNITY EDUCATIONIn efforts to ensure that the Government’s delivery system be free of corruption, theMACC also conducts research on practices, systems and procedures used of those relevantauthorities. The research helps identify potential areas and opportunities for corruptionand seeks to pre-empt similar weaknesses from recurring. In the year 2010, 15 Letters ofAdvice and 16 Consultations were rendered to relevant authorities towards better workprocess and good governance. In addition, inspection was also carried out on publicinterest cases involving weaknesses in work systems thus resulting changes inGovernment’s policy being implemented. These included the smuggling of sand which hasin turn, resulted in the loss of Government’s annual revenue worth millions of Ringgit.Following the MACC’s recommendations to further strengthen the integrity of Governmentagencies, the Special Cabinet Committee on the Integrity of Government Management(JKKMKPK), chaired by the Prime Minister, agreed to the implementation of CertifiedIntegrity Officer (CeIO) pilot programme. The pilot programme, consisting of fourmodules, was implemented in August 2010 at the Malaysia Anti-Corruption Academy(MACA). To date, it is the first-ever-of-its-kind structured programme. Thecommissioned CeIO’s will have a role to ensure that integrity efforts are carried out in aplanned manner in their respective organizations. CeIO appointments in Governmentagencies and the establishment of Compliance Unit through the NKRA initiativeswill ensure more effective prevention of corruption over the long term.Various efforts were also implemented to restore public confidence towards the MACCwith the scope of action implemented in line with the MACC 2010 Aspiration. Variouspublic relation strategies, networking and collaboration between agencies throughmedia channels were planned and conducted. The use of the new media platforms suchas blog, Facebook, YouTube, Twitter and FLICKR were employed to reach out anddisseminate information to the public. The Frenz of MACC (FoMACC) platform wasamong the most effective medium in channelling of information, being accurate andlegitimate with e-mail and Short Messaging Services (SMS) sent with minimal cost tokey-communicators who had been previously identified. As a result, the total of negativefeedback received against to the MACC was greatly reduced from mid-year to the endof 2010.7

INDEPENDENT • TRANSPARENT • PROFESSIONALCAPACITY BUILDING AND PROFESSIONALISMCapacity building and professionalism are important features particularly for lawenforcement agencies such as the MACC in confronting increasingly complex andcross-border crime. The International Anti-Corruption Academy (IACA) based in Vienna,Austria on 30 July 2010 had signed a Letter of Intent making the Malaysia Anti-Corruption Academy (MACA) as their training hub within the Asia Pacific region. Thiscommitment was further accentuated when Malaysia became a signatory to theagreement establishing the IACA as an international organization in September 2010.By way of its support and Letter of Intent with the IACA, the MACA shall continue toreap benefits from the international expertise through training courses and programmeswhich are soon to be organized. The advanced training shall further improve thecapabilities and capacities of the MACC Officers in the fight against corruption.In year 2010, the MACA continued its role to enhance and strengthen the capabilitiesand technical knowledge of officers from anti-corruption agencies abroad. Severalcourses were conducted with the cooperation from the United Nations DevelopmentProgramme (UNDP) Malaysia, United Nations Office on Drugs and Crime (UNODC),Transparency International (TI) and the Economic Planning Unit (EPU) under theMalaysian Technical Co-operation Programme (MTCP). In addition, internationalcourses were also organized by the MACA itself.INITIATIVE AND ROLE AT INTERNATIONAL LEVELAt the international level, the MACC plays an active role in various forums organizedby South East Asia Parties Against Corruption (SEA-PAC); the Anti-Corruption andTransparency Task Force under the Asia Pacific Economic Cooperation (APEC); theADB-OECD Anti-Corruption Initiative for Asia and the Pacific; and the InternationalAssociation of Anti-Corruption Authorities (IAACA) as well as several task forces underthe United Nations Convention Against Corruption (UNCAC). These involvements werein addition to a number of bilateral and multilateral cooperations initiatives coveringprevention, training and operations that were already fostered with several othercountries.The MACC was also honoured by the recognition given to its Chief Commissioner whomwas appointed to sit on the International Advisory Board (Academic) IACA and theExecutive Committee of the IAACA. In September 2010, Malaysia was chosen to hostthe 15th Steering Group Meeting and 10th Regional Seminar on Criminalisation ofBribery of the ADB-OECD Anti-Corruption Initiative for Asia and the Pacific. The MACCrepresented Malaysia during the voting process for assessing the implementation ofUNCAC in June 2010 in Vienna, Austria where Malaysia, which has deposited itsinstrument of ratification to the UNCAC on 24 September 2008, has been designated toappear in the review mechanism in 2012.8

2010 Annual ReportMalaysian Anti-Corruption CommissionNATIONAL KEY RESULTS AREAS (NKRA) - FIGHTING CORRUPTIONCorruption was placed second in the six NKRAs that has been identified under theNational Transformation Programme (NTP) with the responsibility of coordinatingthis initiative under its NKRA-Fighting Corruption Lab. The NKRA-Fighting CorruptionLab was then placed under the umbrella of the MACC in the year 2010. Three mainpriority areas that have been identified include tackling grand corruption, reducingleakages in government procurement and regaining public confidence in regulatoryand enforcement agencies.Nine initiatives or big wins were identified under the NKRA-Fighting Corruption.These initiatives will be implemented in three phases until 2012. Most of the initiatives,such as defining parameters of supporting letters, building up a database of corruptionoffenders, disclosure of procurement information in website, implementation ofWhisteblower Protection Act 2010 and the enforcement of tougher penalties havebeen successfully realized throughout the year 2010.ADMINISTRATION AND MANAGEMENTIn 2010, the number of posts approved to the MACC was 2,580; a drop of 40 (1.5%)posts from the previous year. This was due to a trade-off in establishing the SpecialOperations Division. A total of 1,805 posts were designated for Officers of theCommission while the remaining 775 posts were approved for common staff. During theyear, only a total of 184 posts were filled. These included 141 (76.6%) positions forOfficers of the Commission and 43 (23.4%) posts for common staff. To meet currentoperational requirements, the MACC has with the cooperation of the Federation ofChinese Associations Malaysia, obtained 24 new officers who are well versed in Mandarinand other Chinese dialects. The cooperation has resulted in the drawing of attentionfrom other agencies, anxious to secure candidates from among the Chinese communityto serve in the Public Service.“The war against corruption shouldnot only be about the perpetrator butmore importantly, the undesirableeffects of corruption on the societyas a whole”.9

INDEPENDENT • TRANSPARENT • PROFESSIONALLOOKING AHEADIn line with the MACC Aspiration, the Commission believes that it shall able to increasethe level of public confidence and cooperation in the years to come. The MACC’stransformation process is still ongoing and will be further intensified in the year2011. Compared to the previous year, the MACC’s achievement could be seen from theenforcement and operations activities while activities pertaining to prevention andcommunity education were implemented proactively taking into consideration theimpact on expenditure. The MACC will continue to build capacity and enhance theprofessionalism of its Officers for the purpose of regaining its standing, credibilityand respect.Bearing in mind that the Commission has a legal obligation and responsibility foreradicating corruption, its duties shall be performed in an independent, transparentand professional manner without fear or favour; firmly and fairly, regardless of thestatus or political background of the individuals involved. The war against corruptionshould not only be about the perpetrator but more importantly, about the undesirableeffects of corruption on the society as a whole.The MACC on the same breath, appreciates having good support from all parties andshould not be left to work alone in its efforts against corruption. Every single person,regardless of race, religion, or political ideology should assist and contribute towardsthe war against corruption out of a sense of responsibility and love for the country.These include providing constructive views on enhancing the effectiveness onprevention of corruption rather than hurling accusations which seek to discreditindividuals or parties without any clear basis whatsoever, or worse, done for the sakeof one’s self interest.Let’s Make A DifferenceFight CORRUPTION(DATO’ SRI HJ. ABU KASSIM BIN MOHAMED)Chief CommissionerMALAYSIAN ANTI-CORRUPTION COMMISSION10

2010 Annual ReportMalaysian Anti-Corruption CommissionCHECK AND BALANCEMECHANISM11

INDEPENDENT • TRANSPARENT • PROFESSIONALCheck and BalanceMechanismIn accordance to the establishment of the MACC, five external oversight bodies were alsoformed as the check and balance mechanism towards the running of the MACC inperforming its functions and roles.The formation of the Anti-Corruption Advisory Board (ACAB), the Special Committeeon Corruption (SCC) and Complaints Committee (CC) is made through the provision ofthe law while the establishment of Operations Review Panel (ORP) and the Consultationand Corruption Prevention Panel (CCPP) are established through administrative order.These five entities are responsible for ensuring that the MACC performs their duties inan independent, transparent and professional manner.These mechanisms shall assist in fulfilling the public’s expectations towards theCommission’s independence, efficiency, effectiveness, transparency and accountabilityin executing its designated legal obligations. Positive perception towards the MACC andthe Government shall facilitate the efforts in obtaining public support and cooperationin combating corruption, abuse of powers and malpractices.The handing over of the MACC Annual Report 2009 to theSpecial Committee on Corruption (SCC)12

Anti-CorruptionAdvisory Board2010 Annual ReportMalaysian Anti-Corruption CommissionFrom bottom left :Tan Sri Datuk Amar (Dr.) Hj. Hamid Bugo, Tan Sri Dato’ Seri Megat Najmuddin Bin Megat Khas, Tan Sri Datuk Yong Poh Kon,Tun Abdul Hamid Bin Hj. Mohamad (Chairman), Datuk Rashpal Singh a/l Jeswant Singh, Puan Sri Zaitun Zawiyah Binti Putehand Tan Sri Datuk Seri Panglima Simon Sipaun.From top right :Mr. Chelvarajah Ramasamy Reddiar, Tan Sri Dato’ Sri Mohamed Jawhar Hassan, Prof. Dato’ Anwar Fazal,Prof. Emeritus Tan Sri Dr. Khoo Kay Kim and Prof. Tan Sri Dr. Mohd Kamal Hassan.The Anti-Corruption Advisory Board (ACAB) is set up by the provision of law under section13 of the Malaysian Anti-Corruption Commission Act 2009 (Act 694). The members ofACAB are appointed by the Yang di-Pertuan Agong among individuals whom have rendereddistinguished public service or have achieved distinction in their professions. The ChiefCommissioner of MACC shall be appointed as an ex-officio member of ACAB as provisionedunder section 13(2)(b) of the said Act.TERMS OF REFERENCE : ANTI-CORRUPTION ADVISORY BOARD• To advise the Commission on any aspect of the corruption problem in Malaysia;• To advise the Commission on policies and strategies of the Commission in its efforts toeradicate corruption;• To receive, scrutinise and endorse proposals from the Commission towards efficient andeffective running of the Commission;• To scrutinise and endorse resource needs of the Commission to ensure its effectiveness;• To scrutinise the annual report of the Commission before its submission to the SpecialCommittee on Corruption; and• To submit its comments to the Special Committee on Corruption as to the exercise by theCommission of its functions under this Act.13

INDEPENDENT • TRANSPARENT • PROFESSIONALSpecial Committeeon CorruptionFrom left :Dato’ Hj. Ismail Bin Hj. Abd Mutalib, Dr. Tan Seng Giaw, Tuan Salahuddin Bin Hj. Ayub,Dato’ Seri Mohd Radzi Bin Sheikh Ahmad (Chairman), Senator Dato’ Armani Binti Hj. Mahirudin,Senator Ir. Hj. Zamri Bin Hj. Yusuf and Dato Hj. Abdul Rahman Bin Dahlan.The Committee is set up by the provision of law under section 14 of the MalaysianAnti-Corruption Act 2009 (Act 694). The members of the SCC are appointed by the Yangdi-Pertuan Agong, who shall be drawn from both the members of the Senate and theHouse of Representatives. The said section had also stated that none of whom shall bea member of the administration.TERMS OF REFERENCE : SPECIAL COMMITTEE ON CORRUPTION• To advise the Prime Minister on any aspect of the corruption problem in Malaysia;• To examine the annual report of the Commission;• To examine the comments of the Anti-Corruption Advisory Board as to the exercise bythe Commission of its functions under this Act; and• To seek clarifications and explanations on the annual report of the Commission and thecomments of the Anti-Corruption Advisory Board.14

ComplaintsCommittee2010 Annual ReportMalaysian Anti-Corruption CommissionFrom left :Mr. Ravindran V. Muthu, Datuk Muhammad Mohd Noor,Datuk Haji Mohd Nor Abdullah (Chairman), Datuk Wan Abdul Wahab Abdullahand En. Chooi Mun Sou.The Committee is formed by the provision of law under section 15 of the MalaysianAnti-Corruption Commission Act 2009 (Act 694) with the members duly appointed bythe Minister.TERMS OF REFERENCE : COMPLAINTS COMMITTEE• To monitor the handling by the Commission of complaints of misconduct which is noncriminalin nature against officers of the Commission; and• To indentify any weaknesses in the work procedures of the Commission whichmight lead to complaints and where it considers appropriate to make suchrecommendations as to the work procedures of the Commission as it deems fit.15

INDEPENDENT • TRANSPARENT • PROFESSIONALOperations Review PanelFrom left :Prof. Dr. Syed Noh Syed Ahmad, Datin Aminah Pit Abdul Rahman, Datuk Dr. Hamzah Kassim,Tan Sri Datuk Dr. Hadenan Abdul Jalil (Chairman), Tan Sri Cecil W. M. Abraham,Mr. Walter a/l Doss Sandosam and Mr. Nik Mohd Hasyudeen Bin Yusoff.The Operations Review Panel (ORP) is appointed administratively by the Prime Ministeramong experts who represent relevant professions and whom can represent the quality ofintegrity and independence of the Commission. The ORP shall act as the check and balancemechanism for ongoing cases and on reasons regarding actions upon cases to be prosecuted orno charges are preferred. The ORP may also present its views to the MACC on cases if furtherclarifications are needed.TERMS OF REFERENCE : OPERATIONS REVIEW PANEL• To receive and seek clarification regarding statistics of Investigation Papers opened by theCommission;• To receive and scrutinise report from the Commission regarding Investigation Papers whichexceed 12 months period of investigation;• To receive report from the Commission regarding all cases where suspects arrested are released onbail bond by the Commission exceeding 6 months;• To receive and scrutinise report from the Commission regarding the decisions of InvestigationPapers made by the Public Prosecutor;• To receive and scrutinise report from the Commission regarding Investigation Papers submitted toPublic Prosecutor in which no decisions were obtained exceeding 6 months and above;• To present its views regarding actions upon cases where no charges are preferred;• To advise and assist the Commission on the effectiveness of its investigation operations;• To scrutinise, study and endorse on the proposal to enhance the effectiveness of the Commissioninvestigation operations to the Anti-Corruption Advisory Board; and• To submit an annual report and the ORP comments to the Prime Minister on the progress of theCommission investigation operations.16

Consultation and CorruptionPrevention Panel2010 Annual ReportMalaysian Anti-Corruption CommissionStanding from left :Datuk Dr. David Chua Kok Tee, Dato’ Hj. Kamaruddin Hj. Zakaria, Tan Sri Datuk Robert Phang Miow Sin,Prof. Tan Sri Dr. Nordin Kardi, Datuk Seri Azman Ujang and Datuk Sri Wong Chun Wai.Seated from left :Tuan Hj. Anis Yusal Yusoff, Dato’ Prof. Dr. Ishak Tambi Kechik, Tan Sri Dato’ (Dr.) Ramon Navaratnam (Chairman),Prof. Emeritus Dato’ Dr. Abdul Rahman Embong and Dr. Zainal Abidin Abdul Majeed.The Consultation and Corruption Prevention Panel is appointed administratively by the PrimeMinister among individuals who represent various civil societies and organizations such asacademician, business community, religious figure, media expert and social activist that canassist the MACC towards its objective of inculcating hatred against corruption among thesociety at large.TERMS OF REFERENCE : CONSULTATION AND CORRUPTION PREVENTION PANEL• To scrutinise and endorse to the Commission the priority areas on practices, systems andwork procedures in public and private sectors which may be conducive to the widespread ofcorruption;• To scrutinise and improve the report prepared by the Commission regarding theendorsement to eradicate corruption from spreading in both public and private sectors;• To create and legislate the best practices in focus areas from time to time;• To advise the Commission regarding the implementation of information programme andcommunity relationship as well as campaigns towards enhancing the awareness oncorruption and to garner their support;• To scrutinise the effectiveness of information programme and community relationship aswell as campaigns carried out by the Commission; and to endorse the improvementproposal;17

INDEPENDENT • TRANSPARENT • PROFESSIONALTERMS OF REFERENCE : CONSULTATION AND CORRUPTION PREVENTION PANEL(continued)• To monitor from time-to time the attitude and general perception of the public towardscorruption and efforts carried out by the Commission;• To assist the Commission as the key communicator in garnering public support; the mediaand sectors that are being identified towards the prevention efforts implemented by theCommission;• To scrutinise, study and endorse on the proposal to enhance the effectiveness of thecorruption prevention efforts by the Commission to the Anti-Corruption Advisory Board;and• To submit an annual report and the CCPP comments to the Prime Minister on theachievement of activities and programmes which have been implemented by theCommission.18

2010 Annual ReportMalaysian Anti-Corruption CommissionCORPORATE INFORMATION19


2010 Annual ReportMalaysian Anti-Corruption CommissionMACC Executive ManagementStanding from left:Dato Hj. Zakaria Bin Hj. Jaafar,Dato’ Hjh. Sutinah Binti Sutan andDatuk Hj. Mohd Shukri Bin AbdullSeated :Dato’ Sri Hj. Abu Kassim Bin Mohamed21

INDEPENDENT • TRANSPARENT • PROFESSIONALDirectors of the DivisionsMACC HeadquartersFrom top left :Dato’ Hj. Abdul Razak Bin Musa, KPKPj YM Raja Khan Bin Raja Ahmad, TPj Dato’ Samarajoo a/l Manikam,Pj Hj. Mustafar Bin Ali, TPj Dato’ Mohd Jamidan Bin Abdullah, KPKPj Dato’ Ahmad Khusairi Bin Yahayaand TPj Shaharuddin Bin Khalid.From bottom left :PPj Nor Azmi Bin Karim, KPKPj Sharuddin Bin Sapian, TPj Dato’ Samsiah Binti Abu Bakar,Hjh. Rohani Binti Kadir, KPKPj Abdul Wahab Bin Abdul Aziz and KPKPj Shamshun Baharin Bin Mohd Jamil.22

2010 Annual ReportMalaysian Anti-Corruption CommissionVISIONTo create a corruption-free Malaysian society based on high spriritual and moralvalues.To make the MACC a professional anti-corruption agency par excellence.MISSIONTo eradicate corruption, abuse of powers and malpractices in Malaysia.To concertedly and continuously strengthen integrity and enhance expertisethrough human resources development program.OBJECTIVETo incessantly eradicate all forms of corruption, abuse of powers andmalpractices.CLIENT’S CHARTER• Receive and process all complaints in relation to corrupt practicesexpeditiously;• Obtain and collect concrete and comprehensive evidence for punitiveaction;• Identity of informants will be protected;• Covert operations and investigations will be conducted objectively,diligently and comprehensively;• Provide advisory services on prevention of corruption efficiently andeffectively; and• Prosecution will be conducted diligently and judiciously.23

INDEPENDENT • TRANSPARENT • PROFESSIONALCODE OF ETHICS• To ensure that all orders are carried out expeditiously with full loyalty andcommitment as long as they are not in conflict with adopted religious andlegal principles or regulations;• To continue to be industrious in enhancing self-efficiency, professionalismand excellence through knowledge and experience;• To act in a trustworthy, firm, discretionary, truthful and transparent mannerwithout compromising towards personal or material benefits;• To be determined and positive in facing challenges objectively andrealistically;• To be self-disciplined in upholding good behaviour and prevent evil;• To be grateful and strive for higher achievements and integrity; and• To uphold the secrecy of department information.STRATEGIESIn accordance to the section 7 of the Malaysian Anti-Corruption Commission Act2009 (Act 694), the MACC Strategies are as follows:-Enforcement• To detect corruption offence• To investigate corruption offenceCommunity Education• To educate the public against corruption• To enlist and foster public support against corruptionPrevention• To detect the risk of corruption in practices, systems and workprocedures• To advise as deem necessary on the likelihood of the occurrenceof corruption.24

2010 Annual ReportMalaysian Anti-Corruption CommissionFUNCTIONSThe Officers of the Commission shall have the following functions as providedunder section 7 of the Malaysian Anti-Corruption Commission Act 2009(Act 694):-• To receive and consider any report of the commission of an offence underthis Act and investigate such of the reports as the Chief Commissioner orthe officers consider practicable;• To detect and investigate;i) any suspected offence under this Act;ii) any suspected attempt to commit such any offence under thisAct; andiii) any suspected conspiracy to commit any offence under this Act;• To examine the practices, systems and procedures of public bodies inorder to facilitate the discovery of offences under this Act and to securethe revision of such practices, systems or procedures as in the opinion ofthe Chief Commissioner may be conducive to corruption;• To instruct, advise and assist any person, on the latter’s request, on waysin which corruption may be eliminated by such person;• To advise heads of public bodies of any changes in practices, systems orprocedures compatible with the effective discharge of the duties of thepublic bodies as the Chief Commissioner thinks necessary to reduce thelikelihood of the occurrence of corruption;• To educate the public against corruption; and• To enlist and foster public support against corruption.25

INDEPENDENT • TRANSPARENT • PROFESSIONAL2010 ASPIRATIONStrengthen confidence and enhancedomestic and international perceptionon the effectiveness of the MalaysianAnti-Corruption Commission incombating corruption based onthe principles of independence,transparency and professionalismTo make the MACC a professional Commission thatpossesses high image domestically and internationallyby way of enforcing law, regulations and administrationdirectives in an efficient, precise and effective way. TheMACC is also committed in educating and providinginformation on corruption and preventive measures takenin order to maintain community support against fightingcorruption.26

2010 Annual ReportMalaysian Anti-Corruption CommissionENFORCEMENT27

INDEPENDENT • TRANSPARENT • PROFESSIONALOperationsThe MACC continues to perform various investigation and operationactivities from the many sources of information and complaints received,which include actions taken by the MACC Officers themselves. Theseoperations not only resulted in arrests and charges against those involvedin corruption, abuse of powers and malpractices, but had also uncoveredsyndication of criminal activities. These syndicates had not onlymasterminded and planned criminal activities but continue to engage thepublic officials as accomplices.The unmasking of these criminal activities had in return exposed theweaknesses in the governance of systems and procedures used resulting inthe loss of revenue.28

2010 Annual ReportMalaysian Anti-Corruption CommissionSUCCESS OF ENFORCEMENT OPERATIONS• Corruption, Illegal Sand Mining andSmugglingAUTHORIZED AND CONTROLLED SAND MINING ACTIVITIES BRING REVENUE TO THESTATES AND FEDERAL GOVERNMENT. HOWEVER, SAND MINING PERFORMED WITHOUTANY CONTROL, PLUNDERED, ILLEGALLY MINED AND SMUGGLED RESULT IN LOSS OFREVENUE AND CONTRIBUTE TOWARDS ENVIRONMENTAL DEGRADATION.It is an offence to perform sand mining without permit. It isfurther an offence to excavate and extract sand including thosefrom riverbeds and abandoned mines. Sand is also bannedfrom being exported to other countries. However, no amountof policies and laws can deter those who are immersed by thegreed of corruption. They who are entrusted to enforce lawsand regulations are easily bribed and willing to receive illegalmoney and stood in as puppeteers behind the illegal activities.302520151050Overly greedy and irresponsible partiesconducting sand smugglingCHART 1 : Breakdowns of ArrestsOver Sand Smuggling30EnforcementOfficer/GovernmentOfficer2SpecialOfficerandPrivateSecretary6MembersofPublic5PrivateSectorComplaints and Arrests of Sand SmugglingThe Commission had received a total of 410 complaints oncorruption and abuse of powers in sand mining industrythroughout the year 2010 from the public including theMACC’s own proactive effort in addressing sand smugglingissues. A total of 45 Investigation Papers were opened ofwhich 43 arrests were made as shown in Chart 1. From thetotal, 22 individuals were charged on multiple counts ofcorruption and sand fraud issues. Two cases were tried at theShah Alam Session Court with one of the individuals givensix (6) months imprisonment and fined to RM20,000.00while the other individual was found not guilty. The MACChowever has applied for an appeal for the latter case. As forthe other cases pertaining to the sand smuggling, the trials are stillongoing. The ‘Ops Pasir’ uncovered bribes involved amountingto RM321,528.40. Six (6) individuals were caught under theoffence of corruption for demanding sexual favours while thesingle highest bribery amount was recorded at RM88,000.00.29

INDEPENDENT • TRANSPARENT • PROFESSIONALLosses of Revenue Due to Illegal Sand Mining ActivitiesIt is estimated that royalty proceeds to the Federal and States Government on the sandand rock mining production amounted to millions of Ringgit a year. For states thathave many sources of rock mining materials, the value is considered to be much larger.However, as long as smuggling and stealing of sand, corruption, fraud and abuse ofpowers existed, the nation shall continue to incur high losses.The smuggling of sand to neighbouring countries are being conducted using roads and searoutes by using barges, despite sand being banned for exportation.It is estimated that 3,000 trucks have been used to transport sand for a one year periodwith losses incurred by the Government amounting to almost RM600 million. In thecase of sand smuggling to neighbouring countries, it is estimated that losses borneamounted to about RM145 million a year. This figure only takes into account of sandbeing transported using boats with a capacity of 4,000 tons to 5,000 tons, twice a day.The taking place of sand smuggling activityEnvironmental Destruction Due to Illegal Sand Mining ActivitiesEnvironmental damage had also been established in connection with illegal sand miningand theft. Excessive dredging can alter the river flow patterns and thus interfere withthe living habitats. The flora and fauna will be threatened with extinction if sand theftactivities continues to disregard the ecosystem. Consequently, priceless ecologicalexistence may even be destroyed overnight.30

2010 Annual ReportMalaysian Anti-Corruption CommissionThe widespread sand smugglingissues due to certain corruptedlaw enforcement partiesThose giving bribes are not only targeting law enforcementofficers but are equally brazen to threaten and intimidate theauthorities. Fenced up private properties conducting illegaldredging activities are guarded by TONTOs armed with guns.They do not only obstruct the enforcement work but evendared to pose threats by pointing guns at officers on duty.Paper cuttings on sandtheft and smuggling cases31

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Corruption and Illegal Logging“ILLEGAL LOGGING RELIES ON CORRUPTION TO STAY IN BUSINESS. IT DEPENDS ONTHE COMPLICITY OF OFFICIALS THROUGHOUT THE ENTIRE PRODUCTION CHAIN FROMFOREST RANGERS, LOCAL GOVERNMENT, TRANSPORT AUTHORITIES, POLICE AND CUSTOMS...A FOREST DESTROYED TAKES FOUR DECADES TO REPLENISH, AND A SPECIES ONCEEXTINCT, IS LOST FOREVER”.Illegal Logging in Indonesia : The Link between Forest Crime and CorruptionUNODC, 1st June 2010Corruption in the timber industry is not something new.Numerous exposes highlighted by the media have made thecommunity to be more aware of these activities. The people’scontinued awareness raised suspicion that corruption hadindeed existed in the illegal logging activities.Heavy machinery usedto carry logsDuring the year 2010, the MACC had received 46 informationon corruption being apropos of illegal logging. However, thereports received for this year marked an increase of 32 from thatof year 2009. The additional information reported accountedfor 10 new Investigation Papers opened against corruption inthe timber industry.Illegal Logging Operations in the State of JohorRampant illegal loggingcausing environmentaldestructionBeginning from March 2010, the MACC has conductedoperations on the eradication of corruption in illegal loggingactivities based on the numerous information and reportsreceived. Following this, the MACC had successfully confiscatedthousand of timber logs valued at millions of Ringgit in theeastern region of the Felda Nitar near the Mersing ForestReserve. The seizure conducted with the Johor ForestryDepartment saw the confiscation of 10 units of heavymachineries used in illegal loggings. The discovery of thousandsof timber in various sizes and ready to be shipped out,exposed the greedy nature of these logging contractorsinvolved in the plundering of our invaluable national asset.News onillegal logging cases32

2010 Annual ReportMalaysian Anti-Corruption CommissionIllegal Logging Operations in the State of Perak and PahangIn July 2010, the MACC together with the Perak Forestry Department had recovered800 illegally logged timbers valued at more than RM250,000.000 during a raid at anillegal logging area in the Bintang Hijau Lenggong Forest Reserve, Perak. Similar illegalactivities also occurred in other parts such as the Tersang Forest Reserve, Raub, Pahang.To this regard, the MACC had succeeded in detecting widespread lumber theft takingplace from the investigations made in early September 2010. The result of theinvestigations also revealed that these wood sold to buyers commanded a price ofup to RM2, 500.00 per ton.Illegal Logging Operations in Jalan Simpang Pulai - Cameron HighlandsThe MACC had successfully foiled another illegal logging activity following the seizureof hundreds of illegally extracted logs valued at millions of Ringgit together with heavymachineries used for these illegal activities in the mountainous area bordering JalanSimpang Pulai - Cameron Highlands. Earlier investigations revealed that the timber licenseissued for the private land was for the period between 16 October 2009 to 15 January2010. However, logging activities were still conducted beyond the valid period and evenout of the permissable areas.Illegal Logging Operations in the State of KedahIn early June 2009, an operation codenamed ‘Ops Balak’ was conducted to substantiateallegations that officers from the Kedah State Forestry Department were asking forkickbacks from a timber operator as a consideration for securing logging permits.During the operation, four (4) public officials were detained, involving a Director ofthe Kedah Selatan District Forestry, one (1) officer from the same agency and two (2)of Forest Rangers. All those detained were charged under section 17(a) of the MACC Act2009 (Act 694). The MACC had also apprehended some members of the public knownto be the accomplices to those who were detained to justice.Illegal Logging Operations in the State of SelangorTwo individuals were charged in court under section 17(b) of the MACC Act 2009(Act 694) and section 34 of the Penal Code for conducting illegal loggings at theHulu Selangor District in February 2010. Both the accused were charged for givingbribes to the Operations and Enforcement Officer from the Selangor ForestryDepartment as an inducement not to confiscate an unregistered lorry, a Caterpillarbulldozer and an excavator used by both accused to conduct illegal logging activities.33

INDEPENDENT • TRANSPARENT • PROFESSIONALLoss of Revenue and the Impact of Illegal LoggingTimber seized during the ‘Ops Balak’ operations was estimated at RM8,950,000.00.Excessive illegal logging activities undertaken without due control are not onlydetrimental to the Government in terms of revenue but would also destroy thehabitats and natural ecosystems, further endangering species of flora and fauna.The natural livelihood of the indigenous people would also be destroyed especiallyof those people living in the forests.News on illegal logging34

2010 Annual ReportMalaysian Anti-Corruption Commission• Corruption and Skipped Entry Points“CORRUPTION RANGES FROM ACTIVE INVOLVEMENT TO PASSIVE NEGLIGENCE, AND IT ISOFTEN THE LUBRICANT THAT ALLOWS VICTIMS BE SELECTED, TRANSPORTED AND HELDAGAINST THEIR WILL”.The Vienna Forum Report: A Way Forward to Combat Human Trafficking,United Nations, 2008The entry of illegal immigrants (PATI) to Malaysia is a recurrent issue. These foreignworkers are drawn by ample job opportunities available in Malaysia. However, the entryof these foreigners without due control and enforcement may lead to many negativeproblems apart from human trafficking. Among these are the rise in crime rate, socialill, clash of culture, health issue as well as those who take advantages of these foreignworkers through corrupt practices.As this scenario of PATI entry creates opportunities for bribery, steps were taken by theMACC and operations were organized to address the issue of skipped entry points.11 Investigation Papers (IP) were opened under section 17(a) of the MACC Act 2009(Act 694) and six (6) IPs were opened under section 41 of the MACC Act 2009 (Act 694).Among the operations conducted were on information related to the entry of Indonesiancitizens without valid travel documents. These foreign immigrants were asked by certainmasterminds to pay a certain sum to the Immigration Officers in order to facilitate theirentry at the Port Klang entry point.From the observations of intelligence by the MACC Selangor State, it is estimated thatbetween 1,000 to 1,500 PATI enter the country daily. Of this, an estimated 35% paysbribes of between RM70.00 to RM100.00 per person to evade the immigrationcheckpoint procedures. It is known that the sole purpose of entering Malaysia is to lookfor job opportunities. The levy charged by the Immigration Department of Malaysia onforeign workers is between RM360.00 to RM1,800.00 per annum based on the job sector.The processing fee for a visit pass (temporary work permit) is between RM60.00-RM110.00 per person. Assuming that the average visit pass (temporary work permit) feepayable and the levy charged on each foreign worker is RM800.00, based on the numberof foreigners coming into the country, it is estimated that the Government may loseup to RM86.4 million a year due to the non-compliance of immigration proceduresgreatly owing to corrupt practices.According to a BERNAMA news report on 23 March, 2010, the Home Minister estimatedthat approximately RM171 million is spent on the management and deportation of PATIin year 2009 alone. The meal particularly costs RM341,881.00 per day at all 13 detentioncentres within the country. Due to the influx of PATI, the Government has to bear theburden of costs that were rather difficult to be estimated on the aspect of security,health implications and social services.35

INDEPENDENT • TRANSPARENT • PROFESSIONALIt has been discovered that, from the MACC operations to fight corruption, abuse ofpowers and malpractices among the masterminds of PATI, a number of officers at theImmigration Department have been indeed living lavishly through the illegal moneygained from accepting bribes of up to RM60,000.00 a month at the Pulau KetamPassengers Jetty. This is particularly one of the reasons the entry points into thecountry is easily accessed by PATI. These officers are believed to be paid up toRM2,000.00 a day to facilitate the entry and exit of these illegal immigrants. Thistoo includes releasing foreigners whose passports bear false stamp or who do not havea valid travel document.From these operations, 11 officers from the Immigration Department of Malaysia andseven (7) members of the public were detained. Nine (9) of those arrested were workingat the Pulau Ketam Passengers Jetty while the other two (2) were based at the Port DicksonJetty. A total of RM231,608.36 in cash and in saving accounts of those officers were alsoconfiscated. The total worth of assets confiscated were RM117,400.00.Intelligence and special operations conducted at the ports or entry points led to thesuccess in nabbing those culprits involved at these entry points. The investigations,operations and disclosures on these corrupt practices among Immigration Officersresulted in the Immigration Department of Malaysia taking drastic steps to implementa major revamp by transferring twenty staff and officers working at Port Klang to otherbranches. The revamp was to ensure that the network between the Immigration Officersand the masterminds bringing PATI into the country is put to a halt. At the same time, theImmigration Department of Malaysia and the MACC had a consultation to identify theweaknesses in the systems and procedures which had brought on the corrupt practicesamong the law enforcement officers that led to trespassing at the country’s entry points.News on illegalimmigrants cases36

2010 Annual ReportMalaysian Anti-Corruption Commission• Corruption and Billion Ringgit Lossesat Sime Darby BerhadTHE MACC INVESTIGATES LOSSES INVOLVING GOVERNMENT-LINKED COMPANIES (GLCs).As a Government Linked Company, the Sime Darby Berhadindirectly belongs to the public. Taking into record, the lossesincurred by the company are also to the public and the countryin general.Four (4) projects that contributed to the main losses included:the Bulhanine oil an gas project, the Maersk Oil Qatar (MOQ)oil and gas project, the MOQ ship building project, MaydanMahzam in Qatar and the Bakun hydroelectric project. Amongthe known factors which contributed to the Sime Darby Berhadannouncing the loss of RM964 million for the 2nd quarter of itsfiscal year 2010 report are delays and high overheads.Pursuant to the report, the MACC launched ‘Ops Billion’to investigate the losses incurred by the Sime Darby Berhadwithin the context of corruption offences. The investigation ledto the arrest of three (3) senior officers of Sime Darby Berhadnamely the former Senior Manager of Marine Services, SimeDarby Marine Services at the Sime Darby Marine andEngineering Sdn Bhd whom were charged under two counts ofaccepting bribe amounting to RM200,000.00 from the ownerof a company. The bribe was allegedly for assisting the companyto procure supplies of Derrick Lay Barge (DLB) and two (2)Anchor Handling Tugs Supply (AHTS) to Sime Darby MarineSdn. Bhd. which totalled up to USD134 million. The officer alsoaccepted a bribe of USD2,500 monthly from the owner of thesame company from June 2008 to February 2010, which isbelieved to be payment for helping to secure the said contract.The former Senior Manager of Marine Services, Sime Darbywas charged at the Session Court, Jalan Duta, Kuala Lumpuron 21 December 2010 under one count of acceptingRM200,000.00 as a reward for proposing to Sime Darby thatthe company will be given the contract to construct and sellthree barges worth USD134.2 million and was charged undersection 11(a) of the Anti-Corruption Act 1997 (Act 575) and isliable to be penalized under section 16 of the same Act.News on Sime DarbyBerhad case37

INDEPENDENT • TRANSPARENT • PROFESSIONALThe second arrest involved a Senior General Manager of Business Development &International Project Investment Division under two counts of accepting bribe in the formof cheques worth RM99,000.00 from a contractor for helping with the bidding priceinformation without prior consent from the management in facilitating the contractorto secure subcontracts work worth RM14,430,000.00 and for a copper piping systemworks from Sime Darby Engineering Sdn. Bhd. As a result, the Senior General Manager ofBusiness Development & International Investment Division was charged at the SessionCourt, Shah Alam on 6 August 2010 under section 11(a) of the Anti Corruption Act 1997(Act 575) and is liable to be penalized under section 16 of the same Act.The third arrest involved a former Senior General Manager of Sime Darby Engineeringunder two counts of corruption. The individual was accused of receiving a set of furnitureworth RM33,600.00 and a ‘Rolex’ watch worth RM21,700.00 for helping to approveand expedite the process of payment for the Kumang Project and Phase 1 of the TanggaBarat Cluster Development Project for Duplex Energy Sdn. Bhd. The former SeniorGeneral Manager was charged at the Session Court, Johor Bahru on 3 January 2011 undersection 11(a) of the Anti-Corruption Act 1997 (Act 575) and section 17(a) of the MalaysianAnti-Corruption Commission Act 2009 (Act 694).To enable thorough action on this case, the MACC took the initiative to form a task forcecomprising of the Commercial Crime Investigation Department from the Royal MalaysianPolice, the Securities Commission Malaysia and the Companies Commission of Malaysiato investigate this particular case under their respective legal jurisdictions.Case involvingSime Darby Berhad38

2010 Annual ReportMalaysian Anti-Corruption Commission• Corruption and Malpractices InvolvingSubsidized DieselTHE SUBSIDIZED DIESEL PROVIDED BY THE GOVERNMENT TO FISHERMEN AIMS TO HELPTHOSE FROM THE LOW INCOME GROUP TO IMPROVE THEIR STANDARD OF LIVING.The subsidized diesel provided by the Government to fishermenwas mismanaged by certain quarters. This circumstance as suchcreated doubts and concerns among the members of public thatif malpractices on subsidized diesel can occur, it will also createmisappropriation of the public’s money and subsequently hinderthe efforts to help those with low income group.It is estimated that the Government faces loss of RM257million over a period of five years or an average of RM50million a year. This calculation is based on a minimumestimation of five (5) percent of the total subsidy approvedby the Government to the fishermen. Between the year 2006to 2010 alone, an allocation of 5.1 billion litres of subsidizeddiesel to fishermen was approved by the Government.Based on the information and complaints received, it wasfound that some individuals were involved in the abuse ofdiesel subsidy by bribing officials of the Ministry of DomesticTrade, Co-operatives and Consumerism (MDTCC) to refrainfrom actions being taken against them. Meanwhile, theRegional Fishermen’s Association (PNK) is said to be themastermind behind the malpractices involving subsidizeddiesel worth millions of Ringgit. It was also reported that jettyoperators, boat owners, illegal fuel tank owners and individualswho own warehouses were also involved in the scam.The mismanagement ofsubsidized diesel providedby the GovernmentBased on the intelligence conducted by 80 personnel andOfficers of the MACC and the MDTCC, the activities associatedwith corruption, malpractices and leakages of subsidized dieselwere exposed.39

INDEPENDENT • TRANSPARENT • PROFESSIONALIn an operation codenamed ‘Ops Nano’, the MACC together with the MDTCC had beensuccessful in arresting 36 individuals and the seizing of 458,000 litres of diesel worth morethan half a million Ringgit. Gratification amounting to RM90,000 was also seized from theRegional Fishermen’s Association (PNK). Those arrested were from various states ofMalaysia working as sales operator of diesel, PNK agent, jetty operator, ‘middleman’and tanker driver.The leakage of diesel was first traced back from the Government Depot that sells fuelsupply to PNK, factory, border area and storage tank. Starting from a PNK agent, thesupply will be sold to a storage tank operator and to the fisherman who in return willvend to a tanker dealer, foreign based fisherman, factory or at times transported to theborder.At the same time, system and procedure concerning the capability of the nanotagtechnology in diesel subsidy management and the effectiveness of the e-diesel fleet cardsystem were questionable so long as malpractices and leakages still occur. Eventually,the main factor causing leakages by far is due to the high demand for subsidized dieselamong the industry operators. The selling price of subsidized diesel illegally is much lowercompared to the price sold to the industries. During the operations however the sellingprice of the diesel to fishermen was fixed at RM1.25 per litre whilst RM1.90 per litre tothe industries. The selling price of subsidized diesel in the black market is known to bebetween RM1.60 to RM1.70 per litre.The subsidized diesel not only draws high demand from the local industry operators, butalso wholesalers from the neighbouring countries. In this respect, smuggling of subsidizeddiesel to these countries too occur. As a result, fishermen remain to be poor as for notbeing able to benefit from the facility provided by the Government in helping to improvetheir standard of living.These leakages of subsidized diesel do not stop by just implementing forcefulenforcement. Infact, all those responsible should always carry out their duties honestly insupervising and monitoring the whole activities honestly.A complete study has been conducted by the MACC together with the MDTCC to identifyweaknesses in the system and procedure involving distribution of subsidized diesel.40

2010 Annual ReportMalaysian Anti-Corruption Commission• Indictments of High Profile CasesDatuk Seri Dr. Mohamad Khir Toyo (former Chief Minister of Selangor) andShamsuddin Haryoni (Director of Ditamas Sdn. Bhd.)The former Chief Minister of Selangor, Datuk Seri Dr. Mohamad Khir Toyo was broughtto charge in the Shah Alam Session Court on 6 December 2010 under section 165 of thePenal Code for acquiring two (2) plots of land and a bungalow located at No. 8 and 10, JalanSuasa 7/1L, Section 17, Shah Alam at a questionable price on 29 May 2007. He was allegedto have bought both the properties for himself and his wife, Datin Seri Zahrah Kechik, atthe price of RM3.5 million from the Director of Ditamas, Shamsuddin Hayroni thoughthe property was bought earlier by Ditamas on 23 December 2004 at the price ofRM6.5 million.Shamsuddin Hayroni was also charged under section 109 and section 165 of the samecode for aiding and abetting the acts of Datuk Seri Dr. Mohamad Khir Toyo.Yusof Bin Jamaludin(Director, Department of Special Affairs - JASA)Yusof Bin Jamaludin, Director of the Department of Special Affairs was charged on14 May 2010 under section 193 of the Penal Code for giving a contradictory statement toan MACC Officer on 20 January 2009 during the trial of 61-5-2009 & 61-6-2009 (PP vsHalimi bin Kamaruzzaman & PP vs Dato’ Mohamad Norza bin Zakaria) at the Temerloh,Pahang Session Court.Eight (8) other witnesses who also gave contradictory statements to the MACC duringtheir investigations were also charged in court following the same case.Chithirakala A/P Palanismy(Former Chief Executive Officer - Maju Institute Educational Development- MIED)P.Chithirakala, former Chief Executive Officer (CEO) of Maju Institute EducationalDevelopment (MIED) was charged in court on 11 May 2010 under section 420 of the PenalCode. She was alleged to have committed criminal breach of trust involving RM4 millionbelonging to MIED Capital Sdn. Bhd. which should have been returned to the creditors ofMIED instead was paid to Silverline Services Sdn. Bhd. and Wira Jernih Sdn. Bhd. of whichshe and her husband have vested interest.41

INDEPENDENT • TRANSPARENT • PROFESSIONALDatuk Mirza Mohammad Taiyab (Director General of Tourism Malaysia),Rosly Selamat (Former CEO) and Lim Kim Tye(former Chief Financial Controller - Pembangunan PelanconganNasional Sdn Bhd - PEMPENA)The Director General of Tourism Malaysia, Datuk Mirza Mohammad Taiyab togetherwith his accomplice Muhammad Rosly Selamat, former CEO of Pempena Sdn. Bhd.were charged under the offence of criminal breach of trust involving RM888,000.00on 16 August 2010. Both were alleged to have approved the construction cost of ‘MalaysiaDubai Restaurant’ in Dubai though the basic conditions were not met.Earlier on, in the year 2006, both Muhammad Rosly Selamat and Lim Khing Tai, formerChief Financial Officer of Pempena Sdn. Bhd. were also brought to charge under the sameoffence involving RM169,770.00.Ahmad Izram Bin Osman(Director of the Penang Fire and Rescue Department)The Director of Penang Fire and Rescue Department, Ahmad Izram bin Osman wasbrought to charge in the Sungai Petani Session Court facing two (2) counts oncorruption involving a total of RM16,325.00 from a contractor as an advance paymentfor the purchase of a brand new Toyota Vios as an inducement for securing amaintenance and repair job contracts at the Enforcement Division and the men’s‘standby’ room of the Department costing at RM150,016.00 and the latter atRM198,000.00 respectively.Investigations on the Port Klang Free Zone (PKFZ) CaseVarious reports including those from the media have alleged that the Governmentis faced with losses amounting to RM12.5 billion which involves the procurementmanagement and development of the PKFZ. Controversies too were directed atthe PKFZ claiming malpractices are involved in the sale and purchase of the land,appointment of contractors, consultants and other issues at the PKFZ, Pulau Indah,Selangor.Both the MACC and the Royal Malaysian Police (RMP), working together, formed ajoint task force to further perform investigations onto the PKFZ. Both the MACC andthe RMP were assigned separate tasks which included the studying of diversed andvoluminous documents as well as the submission of inputs for the purpose of facilitatingthe investigations conducted by the RMP.The MACC had also conducted investigations upon the shares owned by individualsworth about RM300 million under the section 4(1) of the Anti Money Laundering andAnti-Terrorism Financing Act 2001 (Act 613). The shares then were seized by the MACCunder the same Act with the power consented by the Deputy Public Prosecutor.42

2010 Annual ReportMalaysian Anti-Corruption Commission• Fight Against Bribe GiversGIVING GRATIFICATION IS A CRIME UNDER SECTION 17(b) OF THE MACC ACT 2009 ANDSHALL ON CONVICTION BE LIABLE TO IMPRISONMENT FOR A TERM NOT EXCEEDING20 YEARS AND A FINE OF NOT LESS THAN FIVE TIMES THE SUM OF THE GRATIFICATION.THE MACC WOULD LIKE TO EXTEND TO THE PUBLIC THAT THE ACT OF OFFERING BRIBETO OFFICERS OF THE PUBLIC BODY IS A HIGHLY RISKY ACT .The ‘Fight Against Bribe Givers’ Ops is an operation against people giving or offeringgratification as provided under section 17(b) of the MACC Act 2009 (Act 694).The operation which was conducted from April till December 2010 resulted with the arrestof 414 individuals. The amount of gratification given to public officials especially of thosefrom the law enforcement officials ranges from RM3.00 to RM35,000.00.The category of bribe givers according to professions is as shown in Table 1. Of the414 arrested, 125 of which were foreigners. Indonesians topped the list with 31 arrests,followed by Myanmarese with 23 arrests. The breakdowns of immigrants arrested are asshown in Table 2.Chart 2 depicts the comparison between the number of public officials arrested forreceiving gratification and private sector members were caught for giving or offering bribefrom the year 1990 to 2010. A sharp rise could be observed under the offence of givinggratification compared to the number of accepting gratification which dropped drasticallyin the year 2010. This indicates the existence of a culture that refuses bribe amongGovernment officials as well as sending across the messages that it is too high a risk ofbeing arrested for bribe giving.CHART 2 : No. of Arrests under the Offence of Accepting and GivingGratification from Year 1990 to 201045040035030025020015010050019901991199219931994199519961997199819992000Number of Arrests2001200220032004200520062007200820092010YearNumber of arrest on Accepting GratificationNumber of arrest on Giving Gratification43

INDEPENDENT • TRANSPARENT • PROFESSIONALTABLE 1 : No. of Arrests on Bribe GiversCategorized According toProfessionsPROFESSIONTOTALTrader 74Self Employed 196Hotel Manager and Worker 4Factory Manager 12Fisherman 1Restaurant Operator 10Saloon Manager 1Student 8Maintenance Worker 1Unemployed 7Public Official 5Company Manager 24Company Staff 35Construction Worker 36Total 414TABLE 2 : No. of Arrests on Bribe GiversCategorized According toCountries of OriginNATIONALITYTOTALIndonesia 31Bangladesh 19China 2India 6Myanmar 23Argentina 1Thailand 1Cambodia 2Nepal 3Pakistan 22Singapore 8Vietnam 7Total 12544

2010 Annual ReportMalaysian Anti-Corruption CommissionOperationsStatisticsThe operational activities in the MACC include information management,intelligence, investigations and prosecutions as per the core businesses ofRecord Management and Information Technology Division, InvestigationsDivision and the Legal and Prosecution Division.The MACC in the year 2010 had received a total of 5,646 informationcontaining element of corruption as compared to the 5,936 - year 2009.Out of this total, only 1,220 information met the criteria that warrantsthe opening of Investigation Paper. The information was furthercategorized as report on corruption, pursuable reports and traceablereports. The remaining 4,426 information which did not meet any ofthe above specified criterion were subjected to other actions such asthe openings of intelligence papers, project papers, covert observations,referred to relevant departments, joint operations or recorded forprofiling purposes.45

INDEPENDENT • TRANSPARENT • PROFESSIONALTABLE 3 : Breakdowns of Actions Taken against InformationReceivedInvestigation Papers (IP) 1,220Preliminary Investigation Papers (PIP) 1,405Intelligence Papers (IP) 1,426Discreet Papers (DP) 43Project Papers (PP) / Surveillance Papers (SP) 165Attached to IP/PIP/IP/DPCovert Observations / Individual Profile /Organization ProfileNo Further Action (NFA) 1,387Total 5,646Of the 1,220 Investigations Papers (IPs) opened in year 2010, a total of900 (73.8%) IPs were completed during the year, while 320 (26.2%) IPs,specifically those initiated in November and December 2010 are stillongoing. The period of completion of IPs is as shown in Table 4.TABLE 4 : Completion Period of Investigation Papers2009COMPLETION PERIOD No. of IP %2010No. of IP %< 1 month 68 10.8 252 28.01-3 months 357 56.4 325 36.14-6 months 161 25.4 213 23.77-9 months 40 6.3 72 8.010-12 months 7 1.1 38 4.2TOTAL 633 100 900 10046

2010 Annual ReportMalaysian Anti-Corruption CommissionCHART 3 : Breakdowns of ArrestsAccording to CategoriesCHART 4 : Operations Statistics for theYear 2009 and 20106005456000593656465005000400400030029330002001901802000100102 1071000939 1220 5009440PublicOfficialsPrivateMembersof Public234Politicians0InformationOpening ofInvestigationPapersArrests2009 20102009 2010944 individuals were arrested by the MACC in 2010 compared to the 500 individuals fromthe previous year’s record, an increment at 88.8%. From this total, 293 of the figure waspublic officials compared to the arrests in 2009, of 190 individuals. Within the privatesector, 102 individuals were arrested in year 2010 compared to the 107 individuals in year2009, an increase of 409%. On the other hand, a drop in the number of arrests amongpolitical party members from 23 individuals in 2009 to only four (4) individuals in 2010was noticed. Statistics and breakdowns of arrest according to categories are as shown inChart 3.A total of 380 indivuals were arrested offence of receiving gratification comparedto 294 individuals in 2009. Whereas, a total of 430 individuals were arrested foroffences of giving bribe in 2010 compared to 108 individuals in 2009, an increase of298%. 84 individuals were arrested on account of giving bribe in 2010 compared tothe 60 individuals in 2009, an increase of 40%. A drop from 8 to 1 arrest was recordedunder the offences of using own’s position. Four (4) individuals were caught formoney laundering offences compared to only one (1) arrest in year 2009. The remaining45 individuals were caught in 2010 for committing other offences, e.g. Election OffencesAct 1954 (Act 5) and the Penal Code.The breakdowns of Operations Statistics for the year 2009 and 2010 are depicted inChart 4.47

INDEPENDENT • TRANSPARENT • PROFESSIONALMACC ReportsApart from the prosecution actions taken against corruption offenders, the MACC isalso responsible for submitting its own reports to the respective Heads of Department/Agency for endorsement of recommendations that disciplinary actions be taken againstany public officials who were found to conduct disciplinary violations under Public OfficerRegulations (Conduct and Discipline) 1993 or other enforced disciplinary regulations.For the year 2010, a total of 350 MACC Reports were sent out to respective Heads ofDepartment/Agency with recommendations on disciplinary actions against variousviolations in comparison to 235 reports made in the year 2009. Chart 5 depicts thebreakdowns of MACC Reports forwarded to Heads of Department according to jobpositions.Job abandonment and using office or position for personal gain top the list at 204(58%) reports in year 2010 compared to 121 (51%) in the year 2009. Throughout 2010,a total of 72 (21%) reports in comparison to 64 (27%) reports in the year 2009 weresubmitted to the respective Heads of Department involving the submission of falseclaims or containing false or erroneous statement. An immense increase couldalso be noticed from the number of MACC Reports forwarded for various kinds ofunethical human conducts towards the running of administrative and departmentfinancial matters to 51 (15%) in the year 2010 from 28 reports submitted during theprevious year.48

2010 Annual ReportMalaysian Anti-Corruption CommissionCHART 5 : Submission of MACC Reports According toJob PositionsNUMBER OFMACC REPORT30025025620016615010087506306 5Top ManagementManagement &ProfessionalCATEGORYSupport0 2Politicians20092010TABLE 5 : Types of Disciplinary OffencesNO TYPE OF OFFENCE 2009 20101 Submission of false claims or containing false or erroneous statement. 64 722 Job abandonment and using office or position for personal gain. 121 2043 Maintaining standard of living beyond personal emoluments and otherlawful income and failure to declare property. 0 34 Being dishonest, untrustworthy, irresponsible, negligence, malpracticesand inefficiency in executing tasks involving financial departmental matters,does not obey to departmental procedures (disobedience), does notcomply to departmental procedures. 28 515 Receiving of gifts, entertainment, borrowings of money/serious financialindebtedness. 15 166 Involvement in business and taking part in politics. 7 4TOTAL 235 35049

INDEPENDENT • TRANSPARENT • PROFESSIONALTABLE 6 : Types of Disciplinary Penalties Imposed on Public OfficialsNO PENALTY 2009No2010% No %1 Administrative Warning/Warning 90 49.5 135 51.92 Fine 25 13.7 18 6.93 Forfeiture of Emolument 2 1.1 0 04 Salary Deferral 11 6.0 23 8.85 Salary Reduction 7 3.9 13 5.06 Demotion 1 0.5 3 1.27 Dismissal 10 5.5 12 4.68 Null and Void 12 6.6 27 10.49 Strong Reprimand - - 2 0.810 Others 24 13.2 27 10.4TOTAL 182 100 260 100Throughout the year, the MACC received 260 feedback from Heads of Department/Agency on the disciplinary actions taken on public officials as per shown in Table 6compared to 182 feedback received during the previous year.Of that total, 135 (51.9%) administrative warnings/warnings were meted out comparedto the figure 90 from the year 2009. Nevertheless, such light penalties do not reflect theGovernment’s determination to wipe out any breach of conducts from the Public Service.27 (10.4%) cases in year 2010 and 12 (6.6%) during the last year’s statistics were acquitteddespite the recommendations made by the MACC’s DPP that disciplinary actions be takenagainst the concerned member of public officials.On the contrary, heavier penalties resulting in 12 (4.6%) job terminations and 3 (1.2%)cases of demotion were also imposed. In total, the number represents only 5.8% of thetotal number of disciplinary penalties meted out by the Disciplinary Authorities upondisciplinary offences which were endorsed.There were also Disciplinary Authorities that imposed other penalties other thanthose specified in the Regulation 38 of the Public Officer Regulations (Conduct andDiscipline) 1993 which amounted to 27 (10.4%) and 24 (13.2%) in the year 2010 and 2009respectively. Among the other penalties imposed were work detention, suspension,surcharge and etc.50

2010 Annual ReportMalaysian Anti-Corruption CommissionLegal &Prosecution“The success of the national fight against corruption depends upon theeffective enforcement of the laws against corruption. In turn, effectiveenforcement largely depends on minimum delay in the matter reachingtrial.”Overcoming Corruption: The Essentials by Bertrand de SpevilleThe enforcement of laws is one of the effective ways in educating thegoverning bodies, public and private sectors to realize that corruptionundermines the foundations of a successful nation. The maximumpenalty of 20 years imprisonment for corruption related offencesrelatively reflects on the seriousness of the offence. The real victimsof corruption are indeed all those around us let alone witnesses givinginformation or evidence. Thus, what is important is that court judgementsshould always make the public feel that the trying has been properlydone.It is the target of Legal and Prosecution Division of the MACC for theyear 2010 to increase its conviction rate and to expedite prosecution ofcorruption related offences especially of those classified as high profileor public interest cases. A significant increase could be noticed from thecompletion of trial and appeal cases in courts throughout Malaysia withthe strict regulations of judiciary ensuring that cases are disposed of asscheduled.51

INDEPENDENT • TRANSPARENT • PROFESSIONALAchievements on the Prosecution of CasesHigh-profile cases of the year 2010 in favour to the prosecution.TABLE 7 : Prosecution of cases in the year 2010Name BIL of Accused / PositionHaji Basuri @ Hassan BasriBin Markum @ Haji ShafiePerak Syaria High CourtJudgeYusof Bin Abu BakarDeputy Director Generalof ImmigrationMohd Firdaus Bin RamlanKuala Krai MagistrateBILCharge1 charge for corruptlysoliciting gratification undersection 10(a)(bb) of theAnti-Corruption Act 1997(Act 575).3 charges for corruptlyreceiving gratification undersection 11(a) of theAnti-Corruption Act 1997(Act 575).14 charges for corruptlyreceiving gratification undersection 11(a) of theAnti-Corruption Act 1997(Act 575).1 charge for corruptlysoliciting gratification undersection 16(a)(A) of theMalaysian Anti-Corruption Act2009 (Act 694).1 charge for corruptlysoliciting gratification undersection 17(a) of theMalaysian Anti-Corruption Act2009 (Act 694).SentenceSentenced to 19 years ofimprisonment (concurrently10 years) and fined toRM210,000.00Sentenced to 56 years ofimprisonment (concurrently6 years) and fined toRM622,00.00Sentenced to 6 years ofimprisonment (concurrently3 years) and fined toRM40,000.00SENTENCESBILMETED OUT UPON CASES ON THE SERIOUSNESS OF THE OFFENCEName of AccusedSanat Bin Abu BakarTer ChaiIsmail Bin ZainuddinCharge3 charges for corruptlysoliciting gratification undersection 11(a) of theAnti-Corruption Act 1997(Act 575).1 charge for corruptlysoliciting gratification undersection 11(b) of theAnti-Corruption Act 1997(Act 575).1 charge for fabricatingdocuments under section11(c) of the Anti-CorruptionAct 1997 (Act 575).SentenceSentenced to16 years ofimprisonment (concurrently6 years) and fined toRM50,000.00Sentenced to 8 years ofimprisonment and fined toRM15,000.00Sentenced to 3 months ofimprisonment and fined toRM2,205,000.0052

2010 Annual ReportMalaysian Anti-Corruption CommissionAPPEAL BIL OF HIGH PROFILE CASES IN FAVOUR TO THE PROSECUTIONName BIL of Accused / Position Charge SentenceDato’ Haji Azman Bin MahalanFormer Perak Exco MemberMohd Razib Bin OthmanDeputy Public ProsecutorMohd Zulkarnain Bin HussainDeputy Public ProsecutorDato’ Mohd Saberi Bin Mohd SallehDean, The Faculty of Sports Scienceand Recreation, UiTMAhmad Kamaruzzaman Bin AbdullahChief Executive Officer of KESAS Sdn.Bhd.Md Zaki Fadzil Bin MaonGeneral Manager of GuthrieFurniture BIL Sdn. Bhd.1 charge for corruptlysoliciting gratification undersection 10(b)(aa) of theAnti-Corruption Act 1997(Act 575).2 charges for corruptlyreceiving gratification undersection 11(a) of theAnti-Corruption Act 1997(Act 575).1 charge for corruptlyreceiving gratification undersection 3(a)(ii) of thePrevention of Corruption Act1961 (Act 57).1 charge for corruptlyreceiving gratification underSection 4(a) of thePrevention of Corruption Act1961 (Act 57).1 charge for fabricatingdocuments under section11(c) of the Anti-CorruptionAct 1997 (Act 575).1 charge for corruptlyreceiving gratification undersection 11(a) of the Anti-Corruption Act 1997 (Act 575).3 charges for corruptlyreceiving gratification undersection 11(a) of the Anti-Corruption Act 1997 (Act 575).Sentenced to 2 years ofimprisonment and fined toRM10,000.00at the Court of AppealSentenced to 2 years ofimprisonment and fined toRM80,000.00at the Court of AppealSentenced to 2 years ofimprisonment and fined toRM20,000.00at the Court of AppealSentenced 3 years ofimprisonment and fined toRM10,000.00 at the ShahAlam High CourtSentenced to 3 years ofimprisonment and fined toRM1,270,000.00 at the ShahAlam High CourtSentenced to 3 years6 months of imprisonmentand fined to RM48,175.00at the Shah Alam High CourtHIGH PROFILE CASES IN FAVOUR TO THE PROSECUTION AT THE REVIEWAND BIL APPEAL STAGESName of AccusedDato’ Chee Kok WengReview and AppealThe Court of Appeal ruled that for cases under the Anti-CorruptionAct, there shall be no limitations as to the number of chargespreferred and applications for transfer of cases from one SessionsCourt to another Sessions Court of another state is allowed.53

INDEPENDENT • TRANSPARENT • PROFESSIONALBILName of AccusedBILDatuk Wasli Bin Mohd SaidYB Mustafa Bin SalimReview and AppealThe High Court set aside the decision made by the Sessions CourtJudge to annul the charge after allowing preliminary objection bythe defense.Appeal by the Prosecution was allowed for the respondent to becalled upon to defend himself after being acquitted and dischargedby the Sessions Court at the end of the prosecution case.TABLE 8 : High Profile Cases Not In Favour To The ProsecutionName of AccusedCourtBILMohd Osman Bin Jailu and 4 othersAhmad Zukni Bin Johari and AnorDato’ Mohd Ramli Bin YusoffDato Shkori Bin MohamedDato Hj Omar Bin OthmanDato’ Wahid Bin Md DonDato’ Ahamad Kuris Bin Mohd. NorIpoh Sessions CourtKuala Lumpur Sessions CourtKuala Lumpur Sessions CourtKota Bahru Sessions CourtRaub Sessions CourtKuala Lumpur Sessions CourtShah Alam Sessions CourtHowever, all cases stated above are still pending appeal at the High Courts.Newspaper cuttings of Courtsverdict on MACC cases54

2010 Annual ReportMalaysian Anti-Corruption CommissionHostile WitnessesIT CAN ALSO BE THAT SOME WITNESSES PROVIDE FALSE INFORMATION, OREXAGGERATE FACTS, AFTER AN INVESTIGATOR HAS BECOME RELIANT ON THEIRTRUTHFULNESS. ANY NECESSARY PROTECTION METHODS SHOULD BE IN PLACE DURINGALL STAGES OF A CRIMINAL PROCEEDING. HOWEVER, THE CRITICAL PERIODS FORWITNESSES ARE USUALLY AT THE TIME OF AN ARREST AND DURING THE COURTHEARING. ONCE A CONVICTION HAS BEEN OBTAINED, THE THREAT USUALLY, BUTNOT ALWAYS, DIMINISHES.United Nations handbook on Practical Anti-Corruption Measures for Prosecutors and investigators, 2004The MACC has set up a Special Panel to study the loss of cases and testimonies given byhostile witnesses. In addition, meetings on the review of Investigation Papers are held fromtime to time to reassess the status of certain cases where witnesses are anticipated to turnhostile, accordingly actions to review charges against defendants will be made.One of the main reasons for the losses during trials is the inconsistency of witnesses’testimonies. There were also situations where witnesses refuse to give testimony or eventurned hostile, mostly due to the reason where accused is of somebody important to thewitnesses or such witnesses fear that their testimonies would have negative repercussionson themselves and their livelihoods.Most witnesses in corruption cases are usually not voluntary witnesses, but are requiredto give testimony. Many are not the actual victims but indeed accomplices. A testimonygiven by a witness in a court of law is beyond the control of the prosecution andthe MACC. Nevertheless, the conscientiousness and cooperation from witnesses areimperative to ensure that justice is duly served. The delay in trials may also contribute todifficulties in tracing witnesses thus keeping them in high spirits.Among the steps taken to prevent problems of hostile witnesses is to institute legalactions against them. For instance, in the case of Dato’ Norza Bin Zakaria and HalimiBin Kamaruzaman, nine hostile witnesses were charged under section 193 of the PenalCode for giving false testimonies. Such action will in fact serve as a lesson to learn to allwitnesses who might have a tendency to follow suit.In instances where there were shortages of Deputy Public Prosecutors or experiencedProsecuting Officers appearing against experienced solicitors, senior lawyers and lawyersskilled in handling corruption cases, the court should reach a verdict on the laws andthe facts and not be biased towards the experienced lawyers. Efforts have been made toappoint or place Deputy Public Prosecutors who have at least three years of experiencesin handling corruption cases. The level of understanding among the Sessions or MagistratesCourt Judges in the methods of investigations and presentation of evidence in corruptioncases is a factor that has in many instances tippped the scale against the prosecution.This analysis which was made based on the 2010 statistics showed that 31 cases of whichwere initially ruled as non-prima facie cases by the Subordinate Courts were orderedinstead for defences to be called by High Court Judges after the hearing of an appeal.55

INDEPENDENT • TRANSPARENT • PROFESSIONALThe loss of some cases in courts are sometimes due to unanticipated line of defence bydefence counsel. Since the burden of proof is on the prosecution, failure to conduct detailedinvestigations on certain pertinent issues and to secure important documentary evidencewill in due course lead to reasonable doubt being raised against the prosecution. Most ofthese corruption cases are trap cases or in situations where transactions occur prior tothe commencement of investigations. Thus, a rigorous investigation has to be conductedto rebut any defence that the accused was framed as well as to prevent witnesses frombeing perpetrators for the crime instead. Proactive steps must be taken to improveweaknesses in the handling of these corruption cases which are technically andcomparatively more challenging in certain aspects which are different from other criminaloffences.Prosecution CasesThroughout 2010, 381 individuals were brought to charge in court comprising of 131(34.4%) public officials, 193 (50.7%) members of the public, 56 (14.7%) individualsfrom the private sector and one (0.2%) politician. Of the figure, the breakdowns on thepublic officials are two (2.0%) from the Top Management Group, 20 (15.0%) from theManagement and Professional Group and 109 (83.0%) were from the Support Group.Trial CasesA total of 811 cases including 382 new cases were tried at the Subordinate Courts in 2010.Of the total, 435 cases were completed at the preliminary trial stages of which 309 (71.0%)defendants were convicted, 103 (24.0%) individuals were acquitted before being calledfor defence, five (1.0%) were acquitted after being called for defence, 14 (3.0%) caseswere discharged but not amounting to acquittal and four (1.0%) cases were withdrawn.The outcome of decisions made at the Subordinate Courts is shown in Table 9.TABLE 9 : Decisions on Trial Cases at Subordinate Courtsin Year 2010NO DECISION TOTAL %1 Convicted 309 71.02 Acquitted & Before Being Called For Defence 103 24.0Discharged After Being Called For Defence 5 1.03 Discharged Not Amounting To Acquittal 14 3.04 Case Withdrawn 4 1.0TOTAL 435 10056

2010 Annual ReportMalaysian Anti-Corruption CommissionAppeal CasesThroughout the same year, a total of 769 appeal cases were tried at the High Courtand Courts of Appeal including 331 of new cases. Of the 769 cases, only 214 cases werecompleted at the High Court and 57 cases were completed at the Courts of Appeal whilstthe remaining 498 of appeal cases are still on pending.From the 214 appeal cases completed at the High Court, 144 (67.0%) were decided infavour of the prosecution while 70 (33.0%) cases were decided in favour towards theaccused. Of the 57 cases completed at the Courts of Appeal, 46 (81.0%) cases were decidedin favour of the prosecution and only 11 (19.0%) cases were decided in favour towardsthe accused. List of High Courts and Courts of Appeal decisions are shown in Table 10 andTable 11 respectively.TABLE 10 : Decisions on Appeal Cases at High Courtsin Year 2010NO DECISION TOTAL %1 In Favour To Public Prosecutor 144 67.02 Not In Favour To Public Prosecutor 70 33.0TOTAL 214 100TABLE 11 : Decisions on Appeal Cases at Courts of Appealin Year 2010NO DECISION TOTAL %1 In Favour To Public Prosecutor 46 81.02 Not In Favour To Public Prosecutor 11 19.0TOTAL 57 100Taking into account the status of cases that were decided many are still pending forfurther appeal to a higher court, the results on most of these cases have yet to comefor decisions. Nevertheless, since 1 January 2010, under one of the initiatives taken toachieve the National Key Result Areas (NKRA) targets, a public database of convictedcorruption offenders has been built up and uploaded on the MACC’s website. A total ofRM9,494,555,00 fines have too been imposed during the trials of corruption offenders.57

INDEPENDENT • TRANSPARENT • PROFESSIONALForfeiture of Property CasesDuring the year 2010, 11 cases of forfeiture of property were handled in various courts,of which one (9.0%) in the Subordinate Court , seven (64.0%) in the High Courts andthree (27.0%) in the Federal Courts. From the total, the one case in Subordinate Court,five from the High Courts and three cases from the Federal Courts were in favour to thePublic Prosecutor whilst the other two cases heard at the High Courts were in favour tothe accused.A total of RM497,250.00 worth of property was seized from the trials of theforfeiture of property cases despite the strong challenges faced by the prosecutionswhilst handling the trials of these cases, appeals and forfeiture of property. With thestrong determination and tenacity displayed by all parties in particular of those fromInvestigations and Intelligence Divisions, an increase of figure towards all decisions infavour to the prosecutions was noticed. Decisions made on forfeiture of property cases areas shown in Table 12.TABLE 12 : Decisions on Forfeiture of Property CasesDECISION YEAR SUBORDINATE HIGH COURT OF FEDERAL TOTAL %COURT COURT APPEAL COURTForfeitureofPropertyIn favour toPublicProsecutor2010 1 5 0 3 9 82Not infavour toPublicProsecutor2010 0 2 0 0 2 1858

2010 Annual ReportMalaysian Anti-Corruption CommissionPREVENTION59

INDEPENDENT • TRANSPARENT • PROFESSIONALInspection &ConsultationThe Inspection and Consultation Division was established to carry out tasksof giving consultation to any organization regardless of public or privatebodies on systems and procedures. Without due control, proper monitoringand supervision, any system or procedure for that matter will be insecuredand riddled with problems. The absence or failure to control systemsand procedures will lead to the failure of the said system, which may beconducive to corruption, abuse of powers, malpractices and weaknesses inmanagement. This will eventually lead to the destruction and losses to adepartment, company or organization. Thus, a controlled system willprevent and plug all avenues and opportunities on the likelihood of theoccurrence of corruption.60

2010 Annual ReportMalaysian Anti-Corruption CommissionThe MACC through the Inspection and Consultation Division also conducts inspections andprovide consultations on issues of national interests such as the Port Klang Free Zone (PKFZ),Permit Issuance as well as Enforcement of Rock Materials Movement, Sand Smuggling,the Collapsed Roof of the Sultan Mizan Zainal Abidin Stadium, the ComputerizedVehicle Inspection System Centre (PUSPAKOM), Political Funding, Allocation of LowCost Houses, Diesel Subsidy Scheme to Fishermen and Implementation of the SimeDarby Berhad Projects.• Inspection on the System and Procedure ofthe Port Klang Free Zone (PKFZ) DevelopmentTHE PERCEPTION ON THE OCCURENCE OF CORRUPTION WAS CREATED WHEN THE COSTOF DEVELOPING THE PORT KLANG FREE ZONE (PKFZ) TURNED DOUBLED.The MACC conducted an inspection on the issues of corruption in the development of thePKFZ. Due to the existence of corruption, the cost eventually rose to RM3.522 billion fromthe original cost of RM1.957 billion. The inspections carried out by the MACC uncoveredthe following weaknesses:-a. Monitoring of ProjectInspection showed that due to lack of monitoring by the Port Klang Board(LPK), the PKFZ had to incur losses. The MACC had recommended to theMinistry of Finance to order all Statutory Bodies to adhere to GeneralCircular No. 3 Year 1998 - Guidelines on Roles and Responsibilities of Ministry,the Board and Chief Executive in the Management of the Federal StatutoryBodies.Close collaboration amongagencies in the efforts ofcombating corruption61

INDEPENDENT • TRANSPARENT • PROFESSIONALb. Progress PaymentIt was found that there was no clause in the PKFZ development agreementwhich requires the approval of LPK before payment is being made, as well as thenon-existence of scope and cost of work as the guidelines to endorse on thecompletion of work before a payment is made. It is recommended that theFinance Ministry redefines the vendor driven projects and all Statutory Bodiesmust comply with procedure on the certification of work completion as well asthe duties and responsibilities of supervisors as stipulated in the TreasuryDirective in a contract with a developer. Hence, no progress payments will bemade without the endorsement of work completion and the adherence accordingto the set specifications.c. Contract DocumentOne of the weaknesses revealed in this issue is the ‘Supplemental Agreement’signed resulting in the increment of costs and without taking consideration intothe interest of the government. It was also noted that on every occasion of anAdditional Development Work, the cost will eventually be increased. Inspectioncarried out by the MACC discovered that the LPK does not have a procedure in thedrafting of an agreement. Draft did not go through a vetting process which shouldhave been done by the Attorney General’s Chambers and without the approvalof the Board of Directors even as required under section 14 of the Port AuthoritiesAct 1963 (Act 488). It is recommended that the Ministry of Finance issue a Circularthat all Statutory Bodies provide a Procedure of Drafting Agreements, whichstipulates the basis/criteria and limits in preparing supplemental agreements orother agreement documentations. Each Agreement Draft must be vetted by theAttorney General’s Chambers and pre-approved by the Board of Directors. A clearand well defined procedure will prevent lopsidedness which will result in hugefinancial implications to the Government.d. Letter of Support (LoS)The drawback of the Letter of Support (LoS) is that the LoS is not a guaranteeof payment by the Government, yet the Government has to bear theliabilities due to the content of the LoS that stipulates that Governmentwill bear all such liabilities. The advice given to the Ministry of Finance is for it toissue a Circular on LoS requiring such burdens or liabilities shall not be borne bythe Government.e. Appointment of DeveloperThe Ministry of Finance has set up a committee to appoint contractors throughdirect consultations and by providing an “Integrity Pact” in all Governmentcontracts. Another recommendation made is for the MACC to establish amonitoring mechanism on all Government’s mega projects. This recommendationhas been submitted by the MACC to the Special Cabinet Committee on Integrityin Government Management (JKKMKPK) Meeting.f. Assessment and Fixation of Land PriceValuation of property by the Valuation and Property Services Department (JPPH)was based on a special value i.e. that all property selling prices will be based on thedevelopment and infrastructure to be developed in the future as per the TreasuryCircular (SPP) No. 1/2003 – Procedure for Purchase of Land from an Individual,Companies and Corporations. In order to overcome this problem, the Ministry ofFinance has repealed SPP No. 1/2003 with the SPP No. 11/2007 which does nothave an assessment criterion based on special value.62

2010 Annual ReportMalaysian Anti-Corruption Commission• Inspection on the System and Procedure ofPermit Issuance as well as Enforcement ofRock Materials MovementTHE SYSTEM AND PROCEDURE OF APPLICATION, APPROVAL AND ENFORCEMENT OF SANDPERMIT AT THE STATES ARE BELIEVED TO BE NOT TRANSPARENT THUS MAY CREATEOPPORTUNITIES FOR CORRUPTION.Subsequent to the ‘Ops Pasir’ carried out by the Intelligence Division, the MACCthrough its Inspection and Consultation Division had conducted inspections on fewstates in connection with weaknesses of the system and procedure pertaining topermits for rock materials and its enforcement thereto. The issue initially drew publicinterest and subsequently a national issue.Eventually, inspections conducted exposed the following weaknesses:-a. Application on the Extraction of Rock Materials• No uniformity in the application forms used in all states;• Some states do not specify conditions of applications and in the event ofthe existence on the conditions of an application, the forms only sets out forMalaysian nationality and if the application is for an individual or a companybased;and• No standard fee levied.b. Approval of Rock Materials Permit• No uniformity on the duration of the permit approval process;• The power to approve the application of rock materials permit is only given tothe Land and District Officer (PTD) or the Director of the Land and Mines(PTG); and• Viewpoint of the Technical Department is not required before any approval isissued to an applicant.63

INDEPENDENT • TRANSPARENT • PROFESSIONALc. Procedure on the Enforcement of Rock Materials Movement• The non-standardization of sand movement period;• The non-existence of Standard Operating Procedures (SOP) on the enforcementof rock materials movement;• The usage of monitoring method based on the number of docket or coupon isundependable due to the non-existence of ticket control mechanism;• Lack of supervision by the enforcement officers at sand mining locations andthe movement of rock materials. General Office Assistants are generallyused to assist in the work of enforcement officers; and• Most states do not own SOP to conduct on investigation in cases involvingsand smuggling.Based on these weaknesses, the Division has provided the Director General of the Landand Mines with consultations by giving recommendations on the following lines ofimprovements as per below:-i. To establish clear and standardized conditions on the application which are to beimplemented to all states in preventing any interested parties from exploitingcurrent situations;ii.iii.iv.To standardize the time period taken on the process and approval of an applicationthroughout the country and to display workflow chart;To establish an internal committee in approving permits;To set a standard operating hours i.e 7.00 a.m. till 6.00 p.m. on working days onthe extraction of rock materials throughout the country and to revoke the powerunder the authority of Land Administrator in giving permission to operate outsidethe set working hours in order to facilitate the monitoring of enforcement officialson duty;v. The use of the ‘Bill Of Quantities’ in the extraction of rock materials;vi.vii.viii.The use of signages to demarcate places of excavation and stockpile;For officers of the District and Land Office/Land and Mines to provide SOP on theenforcement and increase the number of trained enforcement officials; andTo conduct related courses on the procedure of carrying out investigations on sandsmuggling to Investigation Officers.The voraciousness of sand theft and smuggling activities have to be addressedimmediately due to the negative implications to both the environment and theGovernment’s losses of revenue.64

2010 Annual ReportMalaysian Anti-Corruption CommissionTABLE 13 : Weaknesses and Proposed Improvements on the System, Application andEnforcement Procedure of Sand PermitISSUE WEAKNESS PROPOSED IMPROVEMENTBILThe permit application of rockmaterials are too general andsome states do not even setconditions on applicationNo uniformity on the duration ofthe permit approval processThe non-existence of workflowchart on the process of rockmaterials permitConcentration of decision makingpower to the Land and DistrictOffice (PTD)Non-standardization of time onthe movement of rock materialsamong statesThe allowing and approving ofoperations on the extractionand movement of sand duringnon-working hours by Land andDistrict Officer (PTD)No mechanism on the control ofticket/docket/couponNo demarcation on theboundaries of rock materialsexcavation and stock piling aresNon-systematic monitoring ofworkThe use of General OfficeAssistants service in carrying outenforcement tasksInability of instituting legalactions due to the delay in thepreparation of InvestigationPapers by InvestigatingOfficersThe practices of cronyism,discretionary powers andnon-transparencyTo cause delay hence give riseto opportunities and avenuesfor corruptionProvide opportunities andavenues for corruption as wellas non-transparencyProvide opportunities andavenues for corruption aswell as usage of discretionarypowerComplication in themonitoring by EnforcementOfficersProvide avenues andopportunities for corruption tooccur among the PTD Officersand on the smuggling of sandamong sand operatorsThe usage of one ticket/docket/coupon in performingnumerous activities ofmovement of rock materialsResulting in loss of revenue,damage to the ecologicalsystem and give rise to therisk of corruptionNon-existence of check andbalance as well as the blatantuse of discretionary powersWeak enforcement due tothe insufficient number ofenforcement officersShortage of experiencedInvestigating Officers and theabsence of SOP on rockmaterials investigationsTo set and standardize theconditions of applications and todocument the sameTo standardize the time periodtaken on the process and approvalof an application nationwideTo establish a workflow chart on theprocess of rock materials permitDirector General of the Landand Mines to issue a Circular incontrolling the concentration ofdecision making powerTo standardize the time periodtaken on the movement of rockmaterials to only during workinghours nationwideTo revoke the power of PTDOfficers from allowing operatorsto operate during non-stipulatedtimeThe usage of “Bill of Quantities”in the extraction of rock materialsThe use of signages to demarcateplaces of excavation and stockpileProvide a standard enforcementSOP for all statesTo increase the number ofenforcement officersDepartment of Land and Minesto provide with a SOP manual,relevant courses on rock materialsand to create a compliance unit forenforcement officers65

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Inspection on the Enforcement of BannedSand ExportationTHE SYSTEMS AND PROCEDURES HENCE THE APPROVAL AND ENFORCEMENT OF SANDPERMITS WITHIN THE STATES TERRITORIAL ARE SAID TO BE NOT TRANSPARENT THUSGIVING AVENUES FOR CORRUPTION TO OCCUR.Under the operations carried out by the MACC throughout the year 2009 till July 2010,43 arrests were made under the offence of excavating and transferring of sand withoutpermits through both land and sea routes using lorries and barges respectively. It wasestimated that the Government had to incur a loss of approximately RM145 million a yeardue to these illegal activities.Among the factors that contributed to the activities are:-a. High demand from neighbouring countries;b. Prices offered by neighbouring countries are comparatively higher;c. Existing Government’s policy that does not specify on the limits of export quotaon silica sand to neighbouring countries;d. Current punishment meted out to smugglers is non-effective due to the lowcompound rate; ande. The existence of enforcement officers in several departments who refrain fromtaking actions against those sand smuggling syndicates.The MACC through its findings, presented to the Special Cabinet Committee on Integrityin Government Management (JKKMKPK) Meeting Series 66 No. 2 of Year 2010 on theimplementation of the preventive measures towards sand smuggling. The Committee indue respect gave approval to the proposals made as stated below:-a. The prohibition of sand movement through sea routes;b. To review on the relevant laws in ensuring that a heavier penalty is imposed onthose found guilty under the offence of sand smuggling;c. To set a limit on the exports of silica sand;d. To improve on the enforcement by setting up Special Task Force comprising ofenforcement officers from various agencies; ande. To improve on the integrity of enforcement officials.66

2010 Annual ReportMalaysian Anti-Corruption Commission• Inspection on the Independent CheckerSelection System of the Sultan MizanZainal Abidin Stadium ProjectTHE INDEPENDENT CHECKER APPOINTED BY THE CONTRACTOR HAD CERTIFIED THATTHE SULTAN MIZAN ZAINAL ABIDIN STADIUM PROJECT HAD FULLY COMPLETED ASSCHEDULED. HOWEVER, WITH THE RECENT CATASTROPHE THAT HAD AFFECTED THESTADIUM, THE ISSUE LED TO THE PERCEPTION CORRUPTION WAS INVOLVED.The construction and completion of the Sultan Mizan Zainal Abidin, Gong Badak,Kuala Terengganu Stadium roof project has been developed by using the Design and Buildmethod. The stadium was initially awarded to Bina Struktur Sdn. Bhd., Emarcon andJV and Consortium Gateway Mercu on a joint-venture basis under the State Government.The construction of the project then initiated on 27 March 2005 with the cost of contractvalued at RM191,181,240.80 including the estimation of Price Cost Sum.Whilst work on the construction of the roof was being carried out, the roof structure wasfound to be in a sagging position. The Public Works Department of Terengganu then,together with the Senibahri Arkitek, which was appointed as the Architect Consultanthad indeed issued a letter of reprimand and Non-Conformance Report (NCR) to the maincontractor seeking clarification relating to the matter. The contractor in return submitteda Guarantee Letter assuring that the Space Frame affixed to the roof is safe. The PublicWorks Department had later on demanded for the said contractor to issue an IndependentChecker report as an endorser towards the resistance of the sagging roof. Followingthe request, the contractor in response obtained a Certification of Checker through theappointment of an Independent Checker stating the condition of the roof as being safe.Unfortunately, despite all the efforts taken, on 2 June 2009 the main stadium roofcollapsed causing the Terengganu State Government to issue additional allocations for thepurpose of rebuilding the collapsed structure.Investigations taken up by the MACC revealed that the appointment of the IndependentChecker was made by the Main Contractor who too has a personal interest. To preventsuch matter from recurring, the MACC had recommended for improvements to bemade on the Guidelines in the Management of Design and Build Project by insertingclause that the appointment of Independent Checker has to be made by the client andnot the main contractor. This aims to avoid any sort of conflict of interest betweencontractors and Independent Checker which can create opportunities and avenues forcorruption and malpractices to occur within the construction businesses especially ofthose related to Design and Build Projects in Malaysia for the near future.67

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Inspection on the Commercial VehiclesExamination SystemTHE ABSENCE OF SOUND SYSTEMS AND PROCEDURES MAY ENABLE A VEHICLEWHICH FAILED DURING AN INSPECTION IN ONE CENTRE OF THE COMPUTERIZEDVEHICLE INSPECTION SYSTEM CENTRE (PUSPAKOM) TO GO THROUGH IN ANOTHERINSPECTION AND BYPASS ITS INSPECTION EVEN ON THE SAME DAY. THIS NATUREOF EVENT DOES CONTRIBUTE TO THE PERCEPTION OF CORRUPTION AMONG THEOFFICERS OF PUSPAKOM.Inspections were conducted based on the information received that corruption wasrampant in the PUSPAKOM. The MACC has, on its own initiatives conducted inspectionson vehicles particularly those registered commercial vehicles by the PUSPAKOM. Theinspection was further spurred on following the fatal accident on 13 August 2007 involvingan express bus owned by Syarikat Bukit Gantang Berhad. The accident which took placeat the 229.1 km of North South Highway heading north resulted in the deaths of 22individuals.According to the Road Transport Act 1987 (Act 333), all registered commercial vehiclesare required to go through periodic inspection and reinspection at any PUSPAKOM.The periodic investigation is carried out once a year for newly registered cars and oncewithin a period of 6 months for any other types of vehicles. The periodic reinspection onthe other hand must be carried out within 30 days from the date of the first inspection.Reinspection is required for all vehicles that fail to comply within the stipulatedstandards.Failure to comply to routine inspections for 3 subsequent times will result in theissuance of Notice of Prohibition of Use of Motor Vehicles (PGI) by the Road TransportDepartment (RTD). In this event, the PUSPAKOM will initiate its action by submittingdocuments such as the Vehicle Registration Certificate, Road Tax Disc, Motor VehiclesPermit Board (Commercial Vehicle Licensing Board), PUSPAKOM Disc as well as thefailed Inspection Report of the vehicle to the RTD requesting for the PGI to be issued.This is to prevent the said vehicle from operating until repairs are done in order topass the PUSPAKOM Inspection Report and obtaining the issuance of Withdrawal ofProhibition to Use of Motorized Vehicle Notice (PG2) by the RTD.68

2010 Annual ReportMalaysian Anti-Corruption CommissionInspection by the MACC found that in some cases where vehicles that failed duringthe PUSPAKOM Periodic Inspection in one centre will eventually bypass anotherinspection in another centre even on the same day without having to undergo anyimprovements as per required by the earlier centre. This is deemed possible as theresults of all inspection reports are not circulated on a real-time online basis to all theother PUSPAKOM branches except for its Headquarters. This may lead to opportunitiesand avenues for corruption to occur since a vehicle examiner may not be aware on thehistory of a particular vehicle. Thus, the vehicle examiner may use this opportunityto exploit weaknesses in the system to exact bribe from a vehicle owner in the eventof approving an Inspection Report.The MACC considering some of the drawbacks faced by the PUSPAKOM, advised thatimprovements be made concerning its real-time online system within all the PUSPAKOMcentres in Malaysia to enable them to scrutinize the history of any inspected vehicle.As a result of the proposal, the PUSPAKOM has through its own initiatives improvedits inspection application system known as CAVIS (Computerized AutomatedVehicle Inspection System) by developing a real-time online system between all the52 PUSPAKOM Inspection Centre Branches including its Headquarters. The CAVISproject had successfully completed on 15 June 2010.The system now is able to track any blacklisted vehicle or of those vehicles which are yetto pass inspections in the PUSPAKOM. If in any case a vehicle that undergoes a centreelsewhere fails, the report will in time be relayed to all the PUSPAKOM branches.The upgraded system provided by PUSPAKOM keeps out unroadworthy vehicles offthe roads. Moreover, the risk and probability of corruption to occur between vehicleowners and PUSPAKOM officers are effectively put to a halt.69

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Inspection on Political Funding in MalaysiaPOLITICAL FUNDING IN MALAYSIA IS SEEN NOT TO BE TRANSPARENT AND CONTRIBUTESTO THE PERCEPTION ON THE EXISTENCE OF CORRUPTION.The manner in which political funding has been carried out in this country is seen asnot being transparent and this may create avenues and opportunities for corruptionand malpractices to occur. Due to this reason, inspections were conducted with thecollaboration of the NKRA-Fighting Corruption - Corruption Monitoring and CoordinationDivision.Subsequently it is recommended that political funding:a. be made and deposited under a party’s name and account, instead of an individual’saccount;b. be duly recorded; andc. be audited at the end of each financial year.Follow-up actions have been taken by the Registrar of Societies Malaysia by reviewingand drafting regulations or guidelines on the procedures of political contributions.The proposed amendments involves section 14 of the Societies Act 1966 (Act 335) whichstipulates that:a. Any contributions to a political party must be made under the party’s nameinstead of an individual’s name.b. Each division is responsible in ensuring that any contribution received shall bedeposited into the party’s account, properly recorded and issued anacknowledgement of receipt.c. Each Division is advised to audit its account by a certified auditor at the endof each financial year.Tranparent political fundingensures fair election70

2010 Annual ReportMalaysian Anti-Corruption Commission• Inspection on the System and Procedure ofLow Cost Housing AllocationTHE ABSENCE OF SYSTEMS AND PROCEDURES ON THE LOW COST HOUSING ALLOCATIONMAY CREATE POSSIBILITIES AND AVENUES FOR CORRUPTION AND MALPRACTICES TOOCCUR.The unjust allocation of low cost houses was reported by The Sun newspaper dated21 May 2010 through one of its article entitled ‘Low Cost Flats for Rich’ that exposesthose individuals who do not qualify for any such of the housing scheme were allotedsuch houses. Inspections carried out revealed that 22 officers/staffs of the PetalingJaya Municipal Council (PJMC) had acquired some of these low cost houses. They hadacquiesced for such applications to be made to the developer and in turn will be able tocloseout on such deal with reasons on the pretext of surplus of flats and no in sight buyers.This surplus of low cost houses was not reported by the developer to the SelangorProperty Housing Board (SPHB) as to accommodate more occupants. These lowcost houses were however meant to be sold to those who are registered within thejurisdictions of PJMC region and vicinity.To prevent from any losses, the developer will then sell the flats to officers/staffs of PJMC.In addition, the developer is suppose to register the names of applicants with the SPHBfor screening purposes through the Low Cost Housing Open System. In spite of this, thedeveloper had undeniably failed to do the needful and as a result, 22 officers/staffs werefound to outwit the screening and given flats ownership.The MACC had recommended for relevant authorities to ensure that:-a. The low cost house owners selected by the developer are to be be registered withSPHB. Any developer who fails to register shall be compounded with a higher ratethan at present.b. To insert mandatory clause of penalizing a developer who fails to register thenames of successful owners selected by the developer in Low Cost HousingPolicy.c. To standardize and make public on procedure that should be made by the LocalAuthority in Low Cost Housing Policy.d. The SPHB shall perform periodic monitoring on the Applicants RegistrationSystem to ensure that the system works accordingly.e. To establish networking system between the developers and SPHB in monitoringthe development of low cost houses in Selangor.The SPHB had submitted its proposal as recommended by the MACC to the Selangor LegalOffice in gazetting the whole enactment relating to the Low Cost Houses.71

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Inspection on the Monitoring and Enforcementof Diesel Subsidy Scheme to FishermenWEAKNESSES IN MONITORING AND ENFORCEMENT OF DIESEL SUBSIDY SCHEME TOFISHERMAN HAVE CREATED AVENUES FOR MALPRACTICES AND CORRUPTION. THISAROUSES NEGATIVE PUBLIC PERCEPTION ON THE PRESENCE OF CORRUPTION AMONGENFORCEMENT OFFICERS.The Diesel and Petrol Subsidy Scheme was introduced by the Government to helpcover the cost of fishing operations due to the rise of diesel and petrol prices. Thescheme is operated by the Fisheries Development Authority of Malaysia. The givingof subsidized diesel to fishermen is a proof of the Government’s commitment inimproving the livelihood of the fishing communities thus their socio-economic status.However, during recent times, it was found that a serious leakage in the supply ofsubsidized diesel had caused the Government to bear huge losses annually. Thisphenomenon indirectly resulted in the failure of Government’s efforts and goals tothe particular group.72

2010 Annual ReportMalaysian Anti-Corruption CommissionFor a period of 5 years from 2006 to 2010, a total of 5.32 billion diesel was distributedto fishermen. It is estimated that a minimum leakage of 5% occurs annually and theGovernment for that matter had to endure losses as tabulated below:-YEARQUOTA(LITRE)CONSUMPTION(LITRE)LEAKAGE 5%(LITRE)GOVERNMENT’SLOSSES (RM)2006 1,074,848,000 989,727,818 49,486,391 89,075,5042007 1,176,000,000 1,098,817,969 54,940,898 98,893,6172008 1,188,000,000 1,069,367,758 53,468,388 96,243,0982009 1,344,300,000 1,035,547,476 51,777,374 93,199,2732010 1,200,000,000 1,129,372,002 47,746,560 85,943,808TOTAL 5,983,148,000 5,322,833,023 266,141,651 479,054,972Source : Ministry of Domestic Trade, Co-Operatives & ConsumerismDespite the introduction of guidelines and regulations, the activities involving leakages ofsubsidized diesel continued to take place. Accordingly, the Inspection and ConsultationDivision of MACC acts by conducting comprehensive study on the existing systems andprocedures to identify possible weaknesses along with further proposed measures forimprovement to mitigate malpractices from recurring. The comprehensive study coversthe related aspects:-• Policy on quota;• Application, processing and approval of smart card e-Fisherman;• Orders, delivery and receipt of subsidized diesel supply;• Purchase and sale transactions of subsidized diesel; and• Monitoring and enforcement.The study will be continued during the year 2011.Government’s subsidized dieselscheme continued to be siphoned73

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Inspection on System and Procedureof the Sime Darby Berhad ProjectsImplementationTHE NON-EXISTENCE OF SYSTEMATIC PROCEDURE IN THE SIME DARBY BERHAD HAD LEDTO ITS HUGE LOSSES. THIS MAY BE DUE TO THE ACTS OF CORRUPTION.Inspection was conducted following the information received stating that the SimeDarby Berhad (SDB) suffers losses particularly in implementing mega projects. Theselosses in general, generated on the perception that corruption existed in the managingof the Sime Darby Berhad projects.The weaknesses identified as the contributing factors to the losses of the SDB are asfollows:-a. ProcurementNon-compliance of Group Policy and Authorities (GPA) in relation to duediligence resulted in erroneous decisions made by the Board of Directors on theselection of Joint Venture Partner (JV), Acquisition and Merger.b. InvestmentThe Investment Proposal paper was neither reviewed nor given feedback by theLegal Division and Group Risk Management causing investment to be madenotwithstanding the high risk involved.c. MonitoringThe inaccurate reporting and non-systematic work progress had caused theinability of the Board of Directors to monitor the projects being implemented.d. Contract AgreementThe absence of procedures for drafting contractual agreement had causedinvestments made to be unfavourable towards the SDB.e. Variation OrderNon-compliance to the Variation Order procedure according to the contractagreement had caused work to be conducted without the approval of theVariation Order from the owner of a said project. As a result, the owner willeventually refuse to make payment as per claimed.The inspections on these issues will be continued in year 2011.74

2010 Annual ReportMalaysian Anti-Corruption CommissionFor the year 2010, 16 Consultations were given to Departments in improving the system andprocedures from giving rise to opportunities and avenues for corruption, abuse of powers andmalpractices. Among the consultations given are listed in Table 14:-TABLE 14 : Consultations Provided During Year 2010NO DEPARTMENT ISSUE / CONSULTATION1 BIL Immigration Department Review on weaknesses in Immigration Department of Malaysia onof Malaysia work system and procedures on calling visa and socialvisit pass giving rise to opportunities and avenues for corruption.2 Felda Palm Industries Sdn. Bhd. Consultation on practices, systems and procedures on the giving ofsales tender of Abu Tandan by Felda Palm Industries Sdn. Bhd.3 Ministry of Defence Review on practices, systems and procedures on refund of excessMalaysiapayment by vendor suppliers to Ministry of Defence.4 Accountant General’s Review on practices, systems and procedures onDepartmentthe preparation of local order for conducting seminars byadministrators in Ministry and Department.5 Department of Social Welfare Consultation on practices, systems and procedures onpayment for general assistance in cash.6 Ministry of Education Consultation on practices, systems and procedures on selectionMalaysiaof food supplier / contractor for Food Supplement Scheme andTuition Voucher Scheme for Primary Schools throughout Malaysia.7 Prime Minister’s Office Consultation on utilization of funds by the Members of Parliamentand State Assemblymen.8 Selangor State Government Consultation on utilization of funds by Members of Parliamentand State Assemblymen (SELCAT).9 Malaysia Tourism Promotion System and procedures on investment and request of fundsBoard (Tourism Malaysia) by subsidiary companies under the purview of the MalaysiaTourism Promotion Board.10 Malaysia Department of Consultation on practices, systems and procedures on paymentIslamic Development (JAKIM) of allowances to Al-Quran and Fardu ‘Ain Teachers.11 Kinta Selatan District Consultation on practices, systems and procedures on requestEducation Officeof donation for the construction of Kinta Selatan District EducationDepartment’s Co-Curriculum Centre Suspension Bridge, PerakEducation Department.12 Department of Irrigation Consultation on practices, systems and procedures on theand Drainage Perakdevelopment of river site under “Love Our River” campaignby the Department of Irrigation and Drainage Malaysia.13 Ministry of Health Malaysia Consultation on practices, systems and procedures on health- Sabah Health Dept. examination conducted on application for registration to KolejSains Kesihatan Aseana, Sembulan, Kota Kinabalu, Sabah.14 Ministry of Health Malaysia Consultation on procedures of maintenance of property,- Syarikat Radicare Sdn. Bhd. equipment and infrastructure by Syarikat Radicare Sdn. Bhd.15 Ministry of Higher Education Consultation on systems and procedures of work procurementMalaysiaand supply of equipment for Community Colleges under Ministry ofHigher Education, Malaysia.16 Director General’s Consultation on practices, systems and procedures on applicationLand & Mines Officeand approval of mining permit and the enforcement of rockmaterials movement.75

INDEPENDENT • TRANSPARENT • PROFESSIONALIn addition, 15 Letters of Advice were presented to various Departments due to failure in adheringto the available rules or circulars as follows:-TABLE 15 : Letters of Advice to Departments During Year 2010NO DEPARTMENT SUBJECT MATTERBIL1 Farmers’ Organization Utilization of funds from Cooperative Liquidation accountAuthority Malaysia amounting to RM 139,951.00 used during overseas trip in 2006.2 Royal Malaysian Air Force Award of tender on the Royal Malaysian Air Force College Project,Alor Setar, Kedah.3 Royal Malaysian Police Compliance of section 107A of the Criminal Procedure Code -Notification of Investigation Result to the complainant.4 Kampar Municipal District Work procedure on the Kinta Selatan District EducationDepartment’s Co-Curriculum Centre Suspension Bridgeconstruction in Jeram National School, Kampar, Perak.5 Ministry of Natural Resources Weaknesses in the logging and forest production processes toand Environmentcertain companies that give rise to opportunities for corruption.6 Ministry of Energy, A company named Lestari Nilam Sdn. Bhd. was not listed for theGreen Technology and Water tender project bidding process for the Abandoned SeweragePipeline Plan in Kuala Sawah, Seremban, Negeri Sembilan.7 Ministry of Home Affairs Tender procedure for the supply of 40 horsepower boat engine(4 stroke) for the Civil Defence Department and the tender formaintenance, repair and supply of Laser Speed ​Detection Systemspare parts equipment to RMP.8 Sewerage Services Scheduled monitoring of G02 Sewerage Pipe Network repair workDepartmentpackage.9 Fire and Rescue Security checks on building licensing and registration applicationsDepartment Malaysia,of Aseana College of Health Sciences, Sembulan, Kota Kinabalu,Kota Kinabalu, SabahSabah.10 Ministry of Finance Malaysia The management of Custom’s duty excise on imported goods.11 Ministry of Agriculture and Implementation of abandoned Pineapple Harvest InfrastructureAgro-based Industry –Projects at Sg. Pinang 2, Selinsing, Bagan Serai, Perak.Department of Irrigationand Drainage Perak12 Hulu Selangor Municipal Application and approval process on the construction of buildingCouncilfor factory and industry on agricultural land.13 Royal Malaysian Police Systems and Procedures for Procurement and Supply of work,supplies and services by the RMP Logistics Department, in theprocurement of supplies for the purpose of the 12th GeneralElection.14 Ministry of Information, Payment procedures for equipment not supplied involving the up/Communication and Culture down converter (Standard Definition to High Definition) and ShureSM 58 Wireless Microphone.15 Kuala Lumpur City Hall Enforcement and monitoring of licensed traders in Kuala LumpurWholesale Market, Selayang.76

2010 Annual ReportMalaysian Anti-Corruption CommissionStrengtheningManagementIntegrityEfforts to strengthen the Public Services’ delivery system of the MalaysianCivil Service on aspects of integrity was extended to year 2010 with theimplementation of the ‘Initiative on Strengthening Management andAdministrative System of the Malaysian Government’; cognizant to thePrime Minister’s Directives No. 1 Year 2009 Order on the Establishmentof the Integrity Governance Committee (JKTU). The action is a continuumto the strategy and approach as a whole on the efforts of appreciatingthe good values, integrity enhancement, prevention of corruption,malpractices and abuse of power among public officials that wasearlier implemented through various available directives.Achievements for the year 2010 include the approval by the SpecialCabinet Committee on Integrity of Government Management (JKKMKPK)for the concept paper on Certified Integrity Officers Programme (CeIO),establishment of Compliance Unit, concept paper on Recognising andAwarding Public Offcials Who Lodged Report Against Bribe Givers as wellas Preventive Measures on Smuggling of Sand.In addition, eleven briefings and six Governance Committee workshopswere implemented at the Ministries / State Secretariats / Agencies tofurther strengthen the implementation of the Prime Minister’sDirectives No. 1 Year 2009 - Initiative on Strengthening Management andAdministrative System of the Malaysian Government : the Establishmentof the Integrity Governance Committee (JKTU).77

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Integrity Governance Committee (JKTU)TO ENHANCE INTEGRITY, GOOD GOVERNANCE AND REDUCE BUREAUCRATIC HASSLEIN PUBLIC SERVICE.The establishment of the Integrity Governance Committee (JKTU) in all Ministries, StatesGovernment, departments and agencies came into force on 1 January 2010. The JKTU wasimplemented with the following purposes:-a. to further strengthen the management structure system of the MalaysianGovernment under the Special Cabinet Committee on Integrity of GovernmentManagement (JKKMKPK) chaired by the Prime Minister; andb. to translate the aspirations and commitment of the country’s leadership inaccordance to the “1 Malaysia: People First, Performance Now” concept in theimplementation of public services’ delivery system.The objectives are to:a. ensure that the quality of Government delivery system is based on anadministration of integrity, good governance and devoid of bureaucratic hassle;b. provide a service delivery system that is customer friendly, with integrity and isable to satisfy customers; andc. foster a public service environment that is competitive in line with the stakeholdersrequirements.As the coordinator of JKTU throughout year 2010, the MACC had organized three JKTUMeetings in achieving the Directives’ purposes and objectives. In addition, two JKTUSpecial Meetings chaired by the Chief Secretary to the Government were also conducted.The outcome of both meetings were tabled at the Special Cabinet Committee on Integrityof Government Management (JKKMKPK) meeting.Special Cabinet Committee onIntegrity of Government Management(JKKMKPK) Meeting chaired by Dato’ Sri MohdNajib Bin Tun Abdul Razak, Prime Ministerof Malaysia78

2010 Annual ReportMalaysian Anti-Corruption Commission• AchievementsFrom the JKKMKPK Meeting, three policies were approved, namely:-a. Certified Integrity Officer Programme (CeIO);b. Formation of Compliance Unit; andc. Recognition to public officials who report against bribe givers.• Certified Integrity Officer Programme (CelO)PRODUCING RESPONSIBLE OFFICERS TO ENHANCE INTEGRITY AND INSTIL BESTGOVERNANCE IN ORGANIZATIONS.The implementation of this programme was approved by the Prime Minister during theSeries 65 No.1 Year 2010 of the JKKMKPK Meeting which was held on 30 March 2010.Officers from the public and private sector will be appointed Certified IntegrityOfficer (CeIO) upon completion of the part-time training. These officers shall then berecommended to head the Compliance Unit of their respective Department/Agency.Group discussion by courseparticipantsClosing ceremony andpresentation of certificatesof Certified Integrity Officer (CeIO)79

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Compliance UnitTO CREATE COMPLIANCE UNIT IN ALL MINISTRIES/STATE SECRETARIATS TO ENSUREADHERENCE TO THE EXISTING REGULATIONS.This division raised the issue of setting up Compliance Unit during the JKKMKPK MeetingSeries 66 No. 2 Year 2010 chaired by the Prime Minister on 19 August 2010.The establishment of Compliance Unit within each Ministry and State Governmentdepartments as well as agencies under their purview was approved. They are to ensurethe compliance to the policies, rules and regulations as well as identifying weaknesses indepartmental delivery system. In addition to that, they are the drivers in implementingintegrity enhancement programmes for each department. Accordingly, this unit shall actas a rapporteur for any forms of ethical breach committed by a department staff. Someof the Compliance Units which have been formed within Ministries, departments andagencies are as below:-a. Prime Minister’s Officeb. Malaysian Anti-Corruption Commissionc. Public Service Department of Malaysiad. Royal Malaysian Policee. Immigration Department of Malaysiaf. Road Transport Departmentg. Amanah Raya Berhadh. Tenaga Nasional BerhadOther Ministries and departments are also in the process of setting up Compliance Unitas well.Ministry, Department and Agency with Compliance Unit in 201080

2010 Annual ReportMalaysian Anti-Corruption Commission• Recognition Accorded to Civil ServantsWho Report on CorruptionTO ENCOURAGE CIVIL SERVANTS TO LODGE REPORT AGAINST BRIBE GIVERS TO THEAUTHORITIES/MACC.The Concept Paper was tabled during the JKKMKPK Meeting Series 66 No. 2 Year 2010chaired by the Prime Minister on 19 August 2010. Pursuant to this, the policy was approvedduring the said meeting as well as the granted recognition.The objectives of the recognition are to:-a. encourage civil servants to report on bribe offering and giving which is an offenceunder section 17 (b) of the Malaysian Anti-Corruption Commission Act 2009(Act 694).b. create a specific scheme to give recognition to civil servants who report oncorruption cases and dispel negative perception among colleagues for making suchreports.c. enhance the public sector’s image and cultivate positive perception that publicofficials will not compromise when it comes to corruption.d. improve the country’s position in the Corruption Perception Index (CPI).MACC officer receiving a corruption relatedcomplaint from a civil servant81

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Efforts to Enhance IntegrityTO ENSURE THAT CIVIL SERVANTS WHO ARE DUE FOR PROMOTION ARE FREE FROMCORRUPTION.According to the Confidential General Circular No. 1 Year 1985, it is a compulsory for allcivil servants to pass the Integrity Vetting as a pre-requisite for promotion, optional/earlyretirement, conferment of Federal or State honorary awards or medals .This integrity vetting is implemented to ensure that only candidates who are cleared fromcorrupt acts and investigations will be accorded clearance. The MACC in year 2010 hasvetted 124,661 application for various integrity vetting compared to 201,119 applicationswithin the previous’ year.The Prime Minister’s Directive No. 1 Year 2009 :Strengthening Management and Administrative Systemof the Malaysian Government - Establishment of theManagement Integrity Committee.82

2010 Annual ReportMalaysian Anti-Corruption CommissionNational KeyResult Area(NKRA) -FightingCorruptionThe Government is very committed in the efforts of combating corruptionin this country. This can be seen in the formation of the National KeyResult Areas – Fighting Corruption. The idea which was first motioned bythe Prime Minister came to reality when he made the announcement on27 July 2009 reflecting the Government’s commitment and her wishes tobe a country free from any elements of corruption. Fighting corruptionis placed second from the six areas that were identified and the MACCis tasked with the responsibility in the fight against graft with its ChiefCommissioner acting as the Coordinator under the NKRA - FightingCorruption initiative.83

INDEPENDENT • TRANSPARENT • PROFESSIONALBacked by three main objectives, namely to reduce corruption through enforcementand compliance, improve Malaysia’s Corruption Perception Index and improve publicperception on the integrity of the Government and public service, it is obvious thatthese objectives shall meet public aspirations in creating a progressive and advancedcommunity without such scourge. In the efforts of combating this despicable crime, theNKRA - Fighting Corruption had given its focus to the three most prone areas as below:-a. Grand CorruptionThe NKRA – Fighting Corruption and the MACC with the cooperation from otherMinistries and other agencies shall implement the initiatives to ensure that publicfunds are not misused for the interests of certain parties while enhancing thefunding mechanisms of political parties.b. Government ProcurementThe NKRA – Fighting Corruption with the collaboration of relevant Ministriesshall pledge to reduce leakages of public funds in Government’s programmes anddevelopment projects hence ascertain fairness in the awarding of Governmentcontracts.c. Regulatory and Enforcement AgenciesThe NKRA – Fighting Corruption through the support from the MACC and otherenforcement agencies such as the Royal Malaysian Police (RMP), RoyalMalaysian Customs Department, Immigration Department of Malaysia and theRoad Transport Department shall enhance its own initiative in order to regainpublic’s confidence towards these enforcement agencies.TABLE 16 : National Key Performance Index (NKPI) and Targets For CorruptionFOCUSAREAKPI BASE 2010LINEOverall BIL• TI’s Corruption Perception Index Score • 4.5 • 4.9Perception • TI’s Global Corruption Barometer survey on • 28% • 37%Government actions to fight corruption:-% answering “effective”Regulatory • Number of cases charged against number of arrests • 75% • 80%and(Investigation Papers) for drug trafficking and possessionEnforcement under Dangerous Drugs ActAgencies • Number of summons issued against total hours of operations • 0 • 10• Number of summons settled against number of summons • 60% • 78%issued by the Road Transport Dept.(Oct.‘09)• Number of cases charged against number of arrests and • 53% • 60%detention under Immigration Law(Sep.‘09)• Tax recovered from under declared goods and services• RM118 • RM186million millionGovernment • Number of Ministries scoring 90% and above under the • 0 • 13Procurement Accountability Index SystemGrand • Percentage of corruption cases trials completed within one year • 8.5% • 30%Corruption • Number of people in the database of convicted offenders • 0 • 8484

2010 Annual ReportMalaysian Anti-Corruption CommissionIn addition, the NKRA – Fighting Corruption has listed 27 initiatives and studies inorder to obtain the most effective strategies and approaches in its effort to combatcorruption as well as to enhance Malaysia’s position in the International CorruptionPerception Index. Under the NKRA – Fighting Corruption, there are nine core initiativeswhich are identified as ‘Big Wins’. The nine ‘Big Wins’ initiatives are as follows:-a. Define the Parameters of Support LetterThe NKRA - Fighting Corruption has recommended on the preparation of clearguidelines for the public officials in managing and handling the Letter of Supportwhich can influence them in making decision. The guideline was prepared anddistributed by the Malaysian Administrative Modernization and ManagementPlanning Unit (MAMPU) on 2 April 2010 to all Government Departments/Agencies with the setting of the conditions that all decisions materialized onGovernment’s procurement must be made based upon merit.b. Database of Corruption OffenderThe initiative to establish and layout The Database of Corruption Offender, alsoknown as ‘Name and Shame Offender Database’ was successfully publicized onthe MACC’s website commencing from 7 April 2010. The initiative was intended toeducate offenders to refrain from committing similar offences as well as to facilitatethe public and employers in particular to decide whether on any circumstance todeal with the certain individual or group. In addition, the database also acts as apreventive measure in educating the community to shun from corruption.c. Disclosure of Procurement InformationThe Ministry of Finance through this initiative has publicized the GovernmentProcurement information through its MyProcurement Portal which was launchedby the Prime Minister on 1 April 2010. The success of this initiative thenbroadens with the venture of the Public Private Partnership Unit (UKAS) into thecreation of MyPartnership portal in disclosing information on privatizationprojects. The portal which is perceived to beef up the level of transparency,integrity and accountability in Government’s procurement was officially launchedon 25 August 2010.The Database of Corruption Offenderknown as ‘Name-and-Shame Database’displayed on the MACC’s website since7 April 201085

INDEPENDENT • TRANSPARENT • PROFESSIONALd. Implementation of the Whistleblower Protection ActThe law protecting whistleblower which was passed by the House ofRepresentatives on 20 April 2010 and the Senate on 6 May 2010 came into forceon 15 December 2010. The Act is formulated to encourage the public especiallythose of public officials to expose corrupt practices and other misconducts.The NKRA - Fighting Corruption has collaborated with the Legal Affairs Divisionof the Attorney General’s Chambers in coordinating the preparation of theguidelines as well as the standard operating procedure in implementing this Act.Under the provision of the Act, the whistleblower will have the confidentiality ofinformation and identity. At the same time, no detrimental action will be takenagainst a whistleblower in reprisal of such disclosure.e. Strengthening the Compliance UnitThe NKRA - Fighting Corruption in collaboration with the MACC and the MACAhave provided support, advice and expertise to other law enforcementagencies in strengthening and enhancing the compliance unit of each of theenforcement agency. Among the functions of the unit is to ensure that each law,regulation, directive and procedure are adhered to by all officers and staffsbesides conducting integrity test to ensure a high level of integrity among eachof its personnel.f. Review of Political Party FundingThe NKRA - Fighting Corruption in collaboration with the Registrar of Societiesand the Inspection and Consultation Division have reviewed and drafted theregulations or guidelines on the procedures of political contributions. Theproposed amendment involves section 14 of the Societies Act 1966 (Act 335) thatstipulates:-i. Any contribution to a political party must be made under the party’s nameinstead of an individual’s name.ii. Each division is responsible in ensuring that any contribution received shallbe deposited into the party’s account, properly recorded and issued anacknowledgement of receipt.iii. Each division is advised to audit its accounts by a certified auditor at the endof each financial year.Considering that the proposed guidelines relating to the procedure of politicalcontributions is still fresh, the Ministry of Home Affairs and the NKRA - FightingCorruption shall strive for the next six months to gather support from all interestedparties so as to adopt by all political parties nationwide.86

2010 Annual ReportMalaysian Anti-Corruption Commissiong. Trial of Corruption Case within One YearNKRA - Fighting Corruption has received tremendous support from the AttorneyGeneral’s Chambers in which a directive was issued by the Chief Justice to resolvecorruption cases within a duration of one year as well as amendments to theCriminal Procedure Code which stipulates that the prosecution of corruption caseshall be tried within the duration of 90 days. This initiative is further supported bythe establishment of Special Corruption Courts comprising of 14 Sessions Courtand 4 High Courts which began to operate on 16 February 2011 in accelerating thetrials of corruption cases.h. Stiffer PunishmentThe minimum imprisonment through a phased approach based on the seriousnessof an offence will be implemented. Apart to that, public officials who are convictedwill also be imposed on arrest of salary, demotion and dismissal. These convictedpublic officials may even lose their rights to pension and other benefits as well asthe eligibility of future reemployment by the Government.i. Strengthening the Independence of Major InstitutionsSignificant reforms to promote independence of major instititions, with keylegislations such as the establishment of both the Judicial AppointmentsCommission Act 2009 (Act 695) and the Malaysian Anti-Corruption CommissionAct 2009 (Act 694) were passed in the year 2009.NKRA - Fighting Corruption has implemented its initiatives in three phases. The phasesare further categorized according to the year of implementation till 2012. For the year2010, the first phase of the NKRA - Fighting Corruption focuses more on the effortsto enhance transparency. Till October 2010, the Government has succeeded inimplementing six out of the nine ‘Big Wins’ initiatives. The year 2011 was targeted in theaccomplishment of the initiatives that are considered to be somewhat challenging interms of its execution. The six initiatives that have been successful in its implementationare as follows:-1. Define the parameters of support letter;2. Name-and-Shame corruption offender database;3. Virtual Procurement One Stop Centre;4. Implementation of the Whistle Blower Protection Act;5. Trial of corruption case within one year; and6. Enforce stiffer punishment.Efforts in preventing corruption need the be supported and cooperated by all levels ofthe society. Corruption, no matter from where it starts, has to be curbed from spreadingand before it turns to destroy mankind and civilization.87

INDEPENDENT • TRANSPARENT • PROFESSIONALFramework ofAnti-CorruptionThe anti-corruption effort is guided bya top-down and a bottom-up frameworkTOP-DOWN FRAMEWORKPolitical WillLegal &InstitutionalReformEffectiveEnforcementInitiatives DevelopedAgainstCORRUPTIONA total of 27 initiatives betweenRegulatory & Enforcement,Government Procurement & Grand Corruptionwere developed against corruption.REGULATORY & ENFORCEMENT levels, procedures and amendments in law/regulations and councillors PEOPLE FIRST PERFORMANCE NOWFreedomof PressGOVERNMENT PROCUREMENT Directive from the Hon. Prime Minister not to issue supportletter especially for direct negotiation Tighten price negotiation & enforcement of direct negotiation Demarcation between Procurement & Privatisation/PPP Enhance technical capability at every Ministry Systematic and continuous training plan and the formation ofNational Procurement Institute Disclosure at Virtual Procurement One Stop Centre Integrity Pact between Government and Vendors/SuppliersPublic ServiceTransformationPublic ParticipationBOTTOM-UP FRAMEWORKTHE INITIAL STAGES OF CHANGE IN MALAYSIA SHALL FOCUS ONCOMBATING CORRUPTION ALONG THE POLICY AND IMPLEMENTATIONLEVEL, AND BUILDING A STRONGER FOUNDATION TO SUPPORT THESECHANGE INTO THE FUTURE.GRAND CORRUPTION Study on political party & political funding regulation Disclose disbursement of government allocation to theMembers of Parliament (MPs) Segregation of duties between Ministry Secretary Generals(KSU) and Ministers Develop a database of offenders convicted of corruption Develop a centralised database on declaration of asset and debt Increase the credibility and integrity of the media Implementation of the Whistleblower Act & Framework Develop a reward & recognition scheme for civil servantsassisting in corruption cases Stiffer punishment Formalise political appointees at Ministries88

2010 Annual ReportMalaysian Anti-Corruption CommissionCOMMUNITY EDUCATION89

INDEPENDENT • TRANSPARENT • PROFESSIONALCommunityEducationCorruption exists regardless of time and space boundaries. No matter howsmall the value of corruption is, the adverse effects it brings is too vast toconsider. It does not only damage the economy, affect the development ofa nation but also topple and erode the confidence that we possess amongus towards the Government, organizations, institutions, individuals andthe general public itself.The existance of corruption is not only seen in Government but also theprivate and socio-politic sectors. Most of the corruption cases feature thecharacteristics of ‘joint-benefits’. This menace will not exist if either thegiver or receiver refuses and shows disfavour towards the practice.To address this phenomenon from being further entrenched, the MACCwith full commitment and enthusiasm is ready to face any challenges andobstacles that may come in order for the nation to be free from corruptpractices, abuse of powers and malpractices. In year 2010, the MACC hadlaunched a campaign in its fight against bribe givers bearing the slogan‘Restrain From Accepting : Fight Against Bribe Givers’.90

2010 Annual ReportMalaysian Anti-Corruption CommissionThe Restrain From Accepting: Fight Against Bribe Giverscampaign was officiated by Tan Sri Mohd Sidek Hassan, ChiefSecretary to the Government on 26 April 2010 at the MalaysiaDepartment of Islamic Development (JAKIM) Auditorium,Putrajaya.The campaign aims to enhance the integrity of public officialsto fight corruption, abuse of powers and malpractices. Thecampaign also seeks to enlighten the public that bribe giversare not absolved from legal actions to be taken against them.The awareness among the public officials on this scourge ofcorruption will turn them to be more assertive and defy corruptpractices as a culture of life.A considerable amount of support from 10 Enforcementagencies as listed below and the Congress of Unions ofEmployees in the Public Service (CUEPACS) were gained intomaking the campaign a successful one.• Royal Malaysian Police• Malaysia Maritime Enforcement Agency• Forestry Department• Volunteers of Malaysian People (RELA)• Royal Malaysian Customs Department• Immigration Department of Malaysia• Road Transport Department• Putrajaya Corporation• Kuala Lumpur City Hall• Ministry of Domestic Trade, Co-operativesand Consumerism• Congress of Unions of Employees in the PublicService (CUEPACS)The launching of Restrain From Accepting:Fight Against Bribe Givers CampaignAs a result of the campaign, it was noticed that the numberof arrests among the public officials under the offence ofsection 17(a) of the MACC Act 2009 (Act 694) dropped by 32%representing 200 arrests in the year 2010 compared to the 294arrests made in 2009. However, under the offence of section17(b) of the same Act, a rise of 283% representing 414 arrestswas seen in the year 2010 compared to the 108 arrests made inthe year 2009.This report on the statistics clearly reflects a paradigm shift ofmindset and attitude amongst the public officials particularly ofthose who are attached to enforcement agencies.91

INDEPENDENT • TRANSPARENT • PROFESSIONALDato’ Sri Hj. Abu Kassim Bin Mohameddistributing stickers of “Let’s Make a Difference,Fight Corruption”Distribution of stickers and flyersof the MACC by Dato Zakaria Bin JaafarOn 11 March 2010, the MACC had launched its 2010 Aspirations carrying the slogan “Let’sMake A Difference, Fight Corruption” which strives for the awareness among Malaysiancomprising of people from different cultures, religions and ethnicities on the risk thatawaits in due to corruption, abuse of powers and malpractices.Dato’ Sri Hj. Abu Kassim bin Mohamed on 24 February 2010 went hands-on with thedistribution of the MACC car stickers and leaflets to all of the highway users at theSungai Besi Toll Plaza, North South Highway Project (PLUS), Federal Territory of KualaLumpur.• Community Education StrategyIN YEAR 2010, EFFORTS TO COMBAT CORRUPTION WERE REVAMPED AND OPTIMIZEDFOR GREATER IMPACT REACHING ALL LEVELS OF COMMUNITY COGNIZANT TO THECOMMUNITY EDUCATION’S STRATEGY “TO ENHANCE THE CONFIDENCE AND MAINTAINTHE SUPPORT THROUGH THE INVOLVEMENT AND COMMITMENT OF VARIOUS STRATEGICSECTORS IN THE ANTI-CORRUPTION PROGRAMME”.The MACC through its Community Education Division has implementedthree strategies as follows:-i. Community Engagementii. Joint Ventures among Agenciesiii. Media PromotionsCHART 6 : COMMUNITY EDUCATIONSTRATEGYJoint Ventures among AgenciesCommunityRelations• Lecture/Dialogue• Round TableDiscussion• Anti-CorruptionSecretariat• Exhibition• Gerak Mesra ProgamJoint Ventures• Billboard• Anti-Corruption Ads(Hypermarkets &Restaurants)• GLC• RTM• Local AuthoritiesMediaPromotions• Television• Radio• Newspaper92

2010 Annual ReportMalaysian Anti-Corruption CommissionDelegation from the Federation of ChineseAssociations Malaysia (Hua Zong) duringa dialogue session with the MACC at theSelangor Chinese Assembly Hall• Community EngagementCOMMUNITY ENGAGEMENT STRATEGY IS IMPORTANT IN DETERMINING THEEFFECTIVENESS OF CORRUPTION PREVENTION ACTIVITIES IN THE MACC’S CONTINUINGEFFORTS OF EDUCATING THE PUBLIC TO REPUDIATE ALL FORMS OF CORRUPTION.The MACC InformationSession with the Membersof Hua Zong AssociationsThe MACC continued to broaden its anti-corruption efforts by organizing more ofinteractive-based programmes with the business communities and consumersorganizations. On 9 February 2010, a Dialogue and Information Session with theFederation of Chinese Associations Malaysia (Hua Zong) was held at the SelangorChinese Assembly Hall, Kuala Lumpur.This effort was taken to enlighten the business communities on business ethics toavoid any pitfall from corrupt practices, abuse of powers and malpractices. A cultureof corruption shall not thrive if all business related communities hold on to theprinciple of honesty, adhere to rules and practices good corporate governance.The Dialogue and Information Session was attended by Dato’ Sri Hj. Abu Kassim binMohamed, Chief Commissioner of MACC, Executive Committee Member of theFederation of Chinese Associations Malaysia (Hua Zong) and 13 representatives fromthe Chinese Chambers of Commerce from all over the states of Malaysia. A collaborationwas formed between the two parties in which the Launching Ceremony of the MACCInformation Session with the Hua Zong Association Members was held on 5 May 2010at the Selangor Chinese Assembly Hall, Kuala Lumpur in conjunction to the programme.93

INDEPENDENT • TRANSPARENT • PROFESSIONALFollowing the launch, 16 Information Sessions Ceremony with the Hua Zong Communitywere held nationwide. The programmes were organized to provide opportunities for theMACC and the Hua Zong Associations with more interactive sessions in devising strategicmeasures to combat corruption within the business sectors.This bilateral joint effort is further strengthened with the signing of a Memorandumof Understanding (MoU) between the MACC and the Associated Chinese Chambersof Commerce and Industry of Malaysia (ACCCIM) that took place on 9 August 2010at the MACA. The MoU was signed by both Dato’ Sri Hj. Abu Kassim bin Mohamed,representing the MACC and the ACCCIM represented by its President, Tan Sri WilliamCheng Hen Jem in efforts to assist in the strengthening of business ethics and goodgovernance among the members of the ACCCIM. The members too in assisting theMACC were urged on to put forward any suggestions towards improving the workprocess of Government’s departments/agencies in the event of reducing the likelihoodof corruption.Efforts in promoting the programmes and activities such as forums, meetings, discussions,dialogues and information sessions were also conducted to all levels of society. Listed aresome of the societies involved in the dialogues and information sessions organized by theMACC:-• Indian Community Leaders of Kuala Lumpur/ Selangor,• The Fishermen Community, Kuala Sungai Baru, Perlis,• Penang Chinese Community Assembly Hall,• Kuala Langat Indian Community, Selangor• Johor Bahru Tiong Hwa Community, Johor,• The Federations of Kuching and Samarahan Division Chinese Association• Dayak-Bidayuh Contractors, Serian, Sarawak.Information Session with the Malaysian Art Society Members (India)94

2010 Annual ReportMalaysian Anti-Corruption Commission• Mass MediaTOWARDS THE EXPLORATION OF A MORE EFFECTIVE APPROACH FOR THE YEAR 2010,THE MASS MEDIA IN PARTICULAR, THE ELECTRONIC AND PRINTED MATERIALS PLAYSA VITAL ROLE TO ENSURE THAT THE PUBLIC ARE FULLY AWARE ON THE MENACE OFCORRUPTION AND THE CONSEQUENCES IT BRINGS TO A PARTICULAR RELIGION, RACEAND THE NATION. THIS APPROACH, HOWEVER IS ABLE TO PROVIDE A WIDER COVERAGEAND ESSENTIALLY COST-EFFECTIVE.The MACC’s by prospecting the mass media has widened its out-reach programmesin conveying anti-corruption messages. This campaign duly complements the missionof educating the community in the fight against corruption, abuse of powers andmalpractices. Messages such as good moral principles, ethics, work culture, thedetrimental effects of corruption, education on corruption law and the effects ofcorruption were broadcasted extensively through the following mass media channels:-CHART 7 : Show Ratings for the Year 2010SHOW RATING4% (105,000) 3% (70,000)Telemovie‘SYUBAHAH’ - RTM1TV Show‘KHILAF JIWA’ - TV313 Episodes of Serial Drama“OPS SPRM/ FAN TANXING DONG - RTM29.3% (2.4 million)Interviews and media statements which were normally broadcasted via the mass mediachannels provided by the Broadcasting Department of Malaysia (RTM), universityaired-radios, the Media Prima Bhd. and the MEASAT Broadcast Network Systems Sdn.Bhd. (Astro) are fully utilized by the MACC in educating and strengthening the positivevalues towards a better community especially those of the younger generations from thethreats of corruption, abuse of powers and malpractices. It was also noted from the Chart7, that among the top rated show generating over one million viewers is the talk showprogramme.95

INDEPENDENT • TRANSPARENT • PROFESSIONALThe MACC had also through its awareness campaigns, screened and/or played slots of30 - 60 seconds of advertisements on the RTM, university aired-radios, the Media PrimaBhd. channels (TV3, NTV 7, 8TV), the MEASAT Broadcast Network Systems Sdn. Bhd.(ASTRO), Hot.FM, FLY.FM, Klasik FM and other local radio stations throughout the year2010. The campaigns aim to inculcate the sense of hatred and the willingness to cooperateamong the public towards the fight against corruption. The ratings of each screened and/or played advertisements are as tabulated below :-TABLE 17 : Advertisements Broadcasted throughout the Year 2010NO Advertisement RATINGAVERAGE1 Ramadhan Capsule - Rezeki Yang Berkat (RTM, TV3 and Astro) 1.4 millon2 Capsule in conjunction to Fight Against The Bribe Givers Campaign –Report Against Soliciting of Gratification (RTM & TV3)3.0 millon3 Adversity Caused By Corruption Capsule (RTM & TV3) 2.8 millon4 Sound Slide - Let’s Make A Difference - Fight Corruption in conjunctionto the 2010 World Cup (RTM & TV3)2.03 millon5 Sound Slide – Fight Against The Bribe Givers Campaign (TV3) 2.1 millon6 Sound Slide Advertisement – Gifts (RTM & TV3) 2.8 millon7 Jingle – Let’s Make A Difference - Fight Corruption(3 versions – Malay Language by Aizat, English by Jaclyn Victorand Mandarin by Huo Ren)2.3 millon8 Radio Advertisement – 6 series (Radio Hot FM) 3.6 millon9 Radio Advertisement – 6 series (Radio FLY FM) 694,00010 Radio Advertisement – 6 series (Radio Klasik FM) 120,00011 Radio Advertisement by RTM throughout Malaysia -• Collaboration with Other AgenciesIN ITS EFFORT TO ENSURE THAT THE MESSAGES OF THREATS AND NEGATIVEEFFECTS OF CORRUPTION TO THE NATION’S DEVELOPMENT BE COMPREHENSIVELYDISSEMINATED, THE MACC CONTINUED TO RECEIVE SUPPORT AND COOPERATIONFROM VARIOUS GOVERNMENT AND PRIVATE INSTITUTIONS TO INSTIL VALUESREJECTING CORRUPTION THROUGH CAPSULES AND BILLBOARDS ADVERTISEMENTSMACC Billboard AdvertisementsSome of the advertisements shown on the selected Light-emitting diodes (LED) screenshave gained cooperations from various Local Authorities. Listed below are some of theBillboard advertisements screened throughout the country.96• Billboard under the supervision of Kuala Lumpur City Hall, WP Kuala Lumpur• Billboard under the supervision of Malacca City Council, Malacca• Billboard under the supervision of Shah Alam City Council, Selangor• Billboard under the supervision of Ipoh City Hall, Perak• Billboard under the supervision of Kota Bharu Municipal Council, Kelantan• Billboard under the supervision of Penang Municipal Council, Penang

2010 Annual ReportMalaysian Anti-Corruption CommissionBesides that, anti-corruption capsules and advertisements were also screened from publicLED displays at the following venues:-a. Maju Junction Mallb. Berjaya Times Square Mallc. Ampangd. Subange. Klangf. Ipohg. Penangh. Johor BharuLED screens disseminating anti-corruption messagesMACC Advertisement on TV ScreensIn order to reach the community in developing a culture of anti-corruption and towardsthe effort of bolstering public support, the MACC too has garnered cooperations from58 Tamil Muslims restaurants which tend to be popular among Malaysian as the hangoutspots around the Klang Valley and 18 Carrefour malls across the Peninsular Malaysiain conveying anti-corruption messages over its 604 TV screens. Some of the screenedmessages are as below: -a. “Don’t Give and Don’t Accept Bribe”;b. “Corruption is not about race, religion or political party, but its more on themorality and integrity of an individual. Hence, stop politicizing corruption”.MACC Advertisement In Local NewspapersNews on corruption, malpractices and abuse of powers and the society’s role to preventcorruption has been published in all local newspapers. The ads featured in thesenewspapers are as listed in Appendix 1.ExhibitionsThe MACC through its 162 exhibitions, gave opportunity towards the meetings andinteractions with the public as to better explicate on issues relating to the threats ofcorruption as well as the keys to fight against the menace. List of the exhibitions held bythe MACC are as tabulated in Appendix 2.97

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Institutes of Higher LearningAnti-Corruption SecretariatINSTITUTES OF HIGHER LEARNING (IHL), ANTI-CORRUPTION SECRETARIAT (ACS) WASESTABLISHED IN THE YEAR 2006 WITH THE AIM OF INCULCATING ANTI-CORRUPTIONMESSAGES TO ALL OF THE IHL STUDENTS.The main objective of forming the ACS is to instill the values of abhorrence againstcorruption, abuse of powers and malpractices among Institutes of Higher Learningstudents. The MACC in its initial phase, focuses its attention on the Public Institutesof Higher Learning (PIHL).From the 20 PIHL’s in Malaysia, 17 universities as listed below actively organizes variousintegrity and anti-corruption plans and programmes:-1. National University of Malaysia2. Northern University of Malaysia3. University of Science Malaysia4. International Islamic University Malaysia5. University of Technology Malaysia6. National Defense University of Malaysia7. Sultan Idris University of Education8. Islamic Science University of Malaysia9. Tun Hussein Onn University of Malaysia10. Technical University of Malaysia, Malacca11. University of Malaysia, Pahang12. University of Malaysia, Terengganu13. University of Malaysia, Kelantan14. Darul Iman University15. University of Malaysia, Perlis16. University of Malaysia, Sabah17. University of Malaysia, SarawakUNIVERSITIMALAYSIAKELANTAN98

2010 Annual ReportMalaysian Anti-Corruption CommissionThe MACC from 23 to 25 July 2010 has organized a seminar entitled “Towards ImprovingThe Effectiveness of MACC” at the Carlton Holiday & Suites Hotel, Shah Alam, Selangorbearing the objectives as follows:-i. To strengthen the IHL’s Anti-Corruption Secretariat and Alumni understandingtowards the MACC’s functions, roles and the MACC’s 2010 Aspirations in order toenhance public’s confidence as well as the perception on the anti-corruption efforts;andii.To establish sound collaboration between the IHL Anti-Corruption Secretariat andalumnis to further promote the anti-corruption agenda amongst university students.The seminar has resulted in the formulation of a number of resolutions as follows:-1. Integrity Perspectivea. Identify and appoint a person of integrity to write on corruption in any givennewspaper column.b. Candidates of all political parties competing for a post at either state orparliament level has to undergo integrity vetting process.c. Create positions of Certified Integrity Officer (CeIO) in all sectors to ensuretransparency in each sector as accredited by the MACC.d. MACC Officers should partake in periodical audit process of each sector.2. Legal PerspectiveMonitor election budget in order to avoid ‘money politics’.3. Educationa. Having a politician to present anti-corruption messages to youths through majoranti-corruption campaigns.b. Provide information regarding corruption to would-be entrepreneurs by way ofcourses, forums and workshops prior to the registering of businesses with theCompanies Commission of Malaysia (SSM).c. Administer and inculcate strong integrity values to owners of companiesfollowing the expiration of a said business license.4. Diversification of Expertisea. The MACC Officers must diversify their expertise into various fields.b. Expand bilateral relationships with NGOs such as the Consumer Association ofMalaysia, Companies Commission of Malaysia and so forth.99

INDEPENDENT • TRANSPARENT • PROFESSIONAL5. Establish joint cooperation and consultation between the MACC and theMinistry of Education (MOE) on education curriculum.To set up Anti-Corruption Clubs in secondary schools in conveying information oncorruption tallying to a particular age group by means of animation shows, musicaltheaters and simulation of actual activities.6. To reexamine and strengthen the ACS in IHL where the MACC has to establish abilateral cooperation with the Ministry of Education in ensuring that all activitiesby the ACS move as a whole.a. To prepare the latest module which will act as a reference to the ACS inbenchmarking its activities and administration.b. To attain programmes slots in disseminating corruption related information tostudents during orientation sessions.c. To expand on the network of ACS to the Private institutes of Higher Learning.Participants of ‘Towards Improving theEffectiveness of the MACC’ SeminarThe Launching Ceremony of MACCFacebook on 24 July 2010100

2010 Annual ReportMalaysian Anti-Corruption CommissionCorporateCommunicationUnitThe Malaysian Anti-Corruption Commission’s (MACC) CorporateCommunication Unit (CCU) was given the task to develop and maintaina positive image of the Commission as an independent, transparentand professional entity.The CCU was integrated under the Chief Commissioner’s Office as amechanism that coordinates the MACC’s communication initiativessuch as public relation programmes as well as internal and externalcommunication processes and channels to cultivate a positive image ofthe Commission.101

INDEPENDENT • TRANSPARENT • PROFESSIONAL• FunctionTHROUGHOUT 2010, VARIOUS ACTIVITIES WERE IMPLEMENTED SUCCESSFULLY BYTHE CCU AND THAT HAS SERVED AS A BENCHMARK TO GAUGE PUBLIC PERCEPTIONTOWARDS THE COMMISSION. THE ESTABLISHMENT OF THE CCU HAS INDIRECTLYBROUGHT POSITIVE RESULTS AND IMPACT TO THE COMMISSION BY PROJECTING APOSITIVE IMAGE OF THE MACC AND CHANGING PUBLIC PERCEPTION TOWARDSTHE COMMISSION.This positive impact can be measured through various initiatives implemented suchas analysis of tonality for electronic and mass media news reports, usage of socialmedia and formation of the Frenz of MACC (FoMACC) to enhance the MACC’s imageand perception.The CCU’s mission was to plan and execute strategic, accurate and effective publicrelation and communication action plan as well as to form close cooperative ties with themass media, community leaders and non-governmental organizations to enhance publicconfidence and perception towards the MACC.The CCU, indirectly, serves as a local reference point as well as an effective informationand communication channel, both internally and externally.This unit is also responsible in providing training and advisory assistance incommunication and public relation matters to the MACC’s Headquarters and StateOffices should there be a crisis. Its role is also to form strong ties with the media to enhancethe Commission’s image and strengthen public confidence by taking responsive actioneffectively on all adverse issues relating to the Commission. This is done by issuing aprompt response in a form of a statement with regard to any issue immediately.• ImplementationPROMOTING POSITIVE IMAGE AND ADDRESSING THE PUBLIC’S NEGATIVE PERCEPTIONTOWARDS THE COMMISSION WERE AMONG THE CCU’S AIMS THAT WERE CARRIEDOUT THROUGH ENFORCEMENT ACTIVITIES BACKED BY ORGANIZED AND EFFECTIVECOMMUNICATION PLANS.An organized and effective communication plan and action developed by the CCU hasenabled the MACC to achieve the MACC 2010 Aspirations which is to enhance publicconfidence and address public as well as international community’s perception towardsthe MACC’s competence in preventing corruption based on the principles of independence,transparency and professionalism.102

2010 Annual ReportMalaysian Anti-Corruption CommissionBecause of this, several aspects were placed under the main focus when fulfilling itsfunctions such as:-• enhancing the image and developing positive public perception towards theMACC;• implementing media management and public relation activities;• monitor, analyse and compile issues related to the MACC that were reported andpublished by the mass media;• establish networking among media practitioners;• gather viewpoints and feedback from media and public relationpractitioners in relation to issues raised;• advise the top management on any issues raised or public relation activities aswell as prepare responses to media enquiries;• provide advisory assistance to the MACC State offices on media publicity and the‘spinning’ of issues; and• monitor, regulate and gather feedback from the MACC State offices with regard topublic interest cases and also issues involving arrests, convictions as well as crisissituations.INITIATIVES TO ENHANCE POSITIVE IMAGE AND PERCEPTIONAs a new unit, serving as a communicative channel, in resolving public interest issuesconcerning the MACC, the CCU has developed and undertaken several initiatives to dealwith negative public perception towards the MACC, among others:-a. Continuous Media MonitoringThe CCU monitors the electronic and print mediacontinuously everyday throughout the year. This includesinformation and news published on various newspapers,magazines, blogs, websites and social sites.b. Statement and Notes (Notes to the Editor) to MediaThe CCU is a responsive agent that serves as the connectinglink between the MACC’s management and members of themedia organization, from time to time. This includesreleasing press statements and ‘Note to Editor’, to both theprint and electronic media. Throughout 2010, 106 pressstatements were issued and these included information anddata on arrests, charges as well as current issues related tothe Commission.103

INDEPENDENT • TRANSPARENT • PROFESSIONALc. Roundtable Discussions and Closed DiscussionThe Roundtable Discussions (RTD) were among the initiatives organized by theCCU periodically where discussions will concentrate on issues raised by aparticular focus group. Generally, RTD enables the Commission to explain its rolesand functions clearly. Throughout 2010, the CCU held several RTD’s namely:-i. RTD with the Chief Editors (Mainstream & Alternative Media)ii. RTD with the PAS Youth Organisationiii. RTD with the Associated Chinese Chambers of Commerce and Industryof Malaysiaiv. RTD with the Local Authoritiesv. RTD with the Non Governmental Organizations (NGOs)vi. RTD with the Supreme Council of CUEPACSvii. RTD with the Federation of Chinese Associations Malaysia (HUA ZONG)viii. RTD with the Transparency International Malaysia (TI-M)ix. RTD with the Organization of Islamic Countries (OIC)xi. RTD with the representatives of the European Union Embassyxii. RTD with the Indian Community AssociationsTo retain public confidence and address public perception, the CCU held closeddiscussions with various media organizations (mainstream and alternative media) oncein every two months to establish cooperation with non-governmental organizationssuch as the Associated Chinese Chambers of Commerce and Industry of Malaysia throughjointly held discussions in explaining the MACC’s vision and aspiration as well as elementsof freedom and transparency embodied by the Commission. Evidently, these continuousefforts have proven to be fruitful as explanations were given directly by the MACC’s topmanagement.ARTICLE WRITE-UPSThroughout 2010, the CCU officers wrote 30 articles in the official MACC portal andblog, i.e., seven articles in the MACC Bulletin andpublished several articles and advertorial in mainstream newspapers such as UtusanMalaysia, Harian Metro New Straits Times, The Star, The Sun, Sinar Harian and NanyangSiang Pau. These efforts are executed to counter balance the negative news withthe positive ones. Articles published in the print media included Corruption Is AboutSuffering (Rasuah Adalah Mengenai Kesengsaraan) in Utusan Malaysia, Corruption IsAbout Harm (Sengsara Bahana Rasuah) in Harian Metro, Corruption Is About Harm,Not About Who in The Star and The Sun and with the same written in Mandarin forNanyang Siang Pau.104

2010 Annual ReportMalaysian Anti-Corruption CommissionCAMPAIGNSThe CCU jointly organized initiatives with the Community Education Division to devisestrategies for campaigns to create awareness among the people that both perpetratorsof corruption - bribe giver and receiver - are equally guilty. Hence, the ‘Fight Againstthe Bribe-Giver’ Campaign launched in 2010 was intended to impart to the public themessage that bribe-givers should also be renounced. These campaigns have been successfulin sending out the messages that civil servants are no longer easily bribed.MEDIA CONFERENCES, CLOSED DOOR MEETINGS AND LUNCHEON TALKSThe MACC has formed good collaboration network established by the CCU withvarious media organizations to further contribute to the decline of negative publicity onthe MACC. The CCU constantly conduct closed door meetings with Chief Editors ofMedia Agencies in order for those intended to understand the roles and jurisdiction ofthe MACC. All these efforts shall demonstrate to the media and public of the MACC’scommitment to restore and elevate the Commission’s image, garner and retain publicsupport to its cause.THE USE OF SOCIAL MEDIA AND NEW MEDIA INFRASTRUCTUREThe MACC continued to take on proactive steps through the CCU by addressing to thecommunity through various channels including new media infrastructure such as Blogs,Facebook, Twitter, Flicker and YouTube. Currently, this is by far the easiest and fastestway to convey information directly on messages of transformation and anti-corruptionefforts. This method is used to keep up with the general youth whereby the majorityutilizes the new media to receive further development in current affairs. This social mediaallows for the MACC to channel its messages and explain directly and accurately to thisgroup and they in turn will forward the same messages to other blog readers. The CCU hadalso obtained strong media cooperation to help publish articles regarding the MACC forpositive impact among the society.105

INDEPENDENT • TRANSPARENT • PROFESSIONALBLOGUntil now, the MACC uses the MACC’s official blog medium developed by the CCU,namely as the avenue to place its articles and viewsabout issues related to the MACC. This blog is a two way communication channel whichenables the MACC to obtain direct feedback from the blog readers. To date, the CCU hasa network of bloggers who have given their commitment to assist the MACC in eradicatingand combating corruption though their write-ups in their own blogs. This is an importantshift for the MACC in preserving and gaining the public support towards the efforts ofpreventing corruption in Malaysia.FRENZ OF MACC (FoMACC)The Frenz of MACC or FoMACC has been designed as the MACC’s communication agentmedium with the public, with e-mails and SMS’s used in channeling the latest, definitiveand unbiased information to all individuals registered with the FoMACC. It currently has1,439 members from 45 categories.With the FoMACC system, the CCU has compiled comprehensive key-communicatorsprofile registered as members such as Ministers, Deputy Ministers, Political Secretaries,all five MACC Board/Committee/Panel Members, GLC/GOCs CEOs. Vice Chancellors,Lecturers, Ex-ACA/MACC, Foreign Embassies, Foreign Trade Representatives, Members ofParliament/ADUNs, Foreign Associations in Malaysia, Blogger, NGOs, Media Editors,Journalist and many more.The FoMACC is capable of delivering messages, information or even news bulletins in aninstant to members with almost no cost involved. The key-communicators profile whichwas segmented only allows relevant messages, news or information to be sent to theintended key-communicators category. The FoMACC has become the most effectivemedium in delivering the information and news to the specific individuals or groupsthrough technical enhancements in 2011.Through the FoMACC, 35,700 SMSes were sent to its members since it was launched on23 Mac 2010.106

2010 Annual ReportMalaysian Anti-Corruption CommissionFACEBOOKThe CCU also took the initiative to provide a direct communication channel between theMACC and the public by way of Facebook social network. Up to December 2010, the MACC’sFacebook Fans have reached to 10,105 members and discussion on its Facebook’s Wall wasviewed up to 9,000 times in a day, which equals to an average of 3,500 participation ineach of the issues discussed in Facebook.Through Facebook, the MACC is able to display the latest news or even current issuesto the public. Even the topics of discussion which were updated daily and given instantfeedback to questions continue to attract more of the MACC fans to give their views andvoicing of opinions. All views and comments received are deemed important for thebenefit of improving the MACC’s image and perception. There were even information inrelation to corruption, abuse of powers and malpractices relayed through the MACC’sFacebook page. This shows that the public’s confidence towards the MACC is everincreasing.MACC OFFICIAL PORTALThe CCU also utilized the MACC official portal ( to disseminate theMACC’s current issues and activities. This bilingual portal also projects various currentinputs available from states and divisions of the MACC. The general public can access andobtain various information such as the latest news, the MACC’s achievements, courtcase verdicts, corruption offender’s data, monthly and annual arrests statistics from thisportal. The CCU also constantly updates news statement and the latest feedback fromthe MACC, court case reports and arrests. This portal too displays appropriate linksto other social media such as the MACC Facebook and the official MACC blog.107

INDEPENDENT • TRANSPARENT • PROFESSIONALYOUTUBE, TWITTER AND FLICKRIn order to broaden the dissemination of the anti-corruption messages and to engagewith the various levels of community, the CCU had also used many other different socialmediums such as YouTube (, Twitter ( and Flickr ( The high traffic volume fromthe younger generation into this social media has prompted the CCU to utilize it asmeans of approach to the various levels of community. Excerpts of speeches from theCommission’s Top Management and notable anti-corruption speakers were also uploadedinto YouTube.108

2010 Annual ReportMalaysian Anti-Corruption Commission• News AnalysisIncrease of Positive Image and Perception towards the MACCIn 2010, news exposure with regards to the MACC in the main news media such asprint (newspaper) and electronic media including radio and television saw a decrease innegative publicity.Throughout the year 2010, there was a decline in negative publicity towards the MACC,from both the newspaper reports and the electronic media such as television and radio.Negative PublicityNegative publicity is in the form of criticism, accusations and articles placing the MACCunder bad light. The decline in negative publicity can be observed through the statisticaldifferences for year 2010 duly illustrated in Chart 8.For the first half of the year, negative publicity towards the MACC totalled to 119, with thesecond half of the year dropping to 93 only.Although the CCU had only been established for no less than a year, it has successfullycontrolled many negative publicity. The various meetings held with the media,campaigns and articles written to explain certain issues have enabled the change ofthe public perception towards the MACC.CHART 8 : Media Analysis on Positive, Negative andNeutral Tonality For Year 2010800781700600500461400300292 299 281344326Positive2001000112JanuarytoMarch7ApriltoJune45JulytoSeptember15148OctobertoDecemberNegativeNeutral109

INDEPENDENT • TRANSPARENT • PROFESSIONALPositive PublicityPositive publicity shows to highlight the MACC’s achievements such as arrests,investigations and activities conducted by the MACC. For the first half of the year,i.e. from January to June 2010, positive publicity published in the print and electronicmedia totalled to 573. The second half of the year, i.e. July - December 2010, a total of482 positive publicity regarding the MACC were published by the mass media. Overall,the total positive publicity during the year 2010 is 1,055 as illustrated in Chart 9.CHART 9 : Positive PublicityPOSITIVE156292JANUARY - MARCH32639.2%15.8% 41.5%44.5%APRIL - JUNEJULY - SEPTEMBER281OCTOBER - DECEMBERThis positive publicity is the result of the MACC’s continuous effort in publishing relatedarticles periodically and the conduct of regular meetings with the media as means ofinforming the public about the latest activities and information on the MACC.The creation of virtual communication medium such as Facebook, MACC Blog,Youtube, Flickr, Frenz of MACC (FoMACC) have helped in providing the latest inputto the public. These actions further assisted towards increasing the positive publicityof the Commission.110

2010 Annual ReportMalaysian Anti-Corruption CommissionINTERNATIONAL DIMENSION111

INDEPENDENT • TRANSPARENT • PROFESSIONALINTERNATIONAL ACHIEVEMENTSCORRUPTION IS A GLOBAL ISSUE THAT NEEDS TO BE ADDRESSED AS A WHOLE BYTHE INTERNATIONAL COMMUNITY AS CORRUPTION IS NO LONGER JUST A DOMESTICISSUE OF A COUNTRY.Communication, transactions and collaboration beyond boundaries have made corruptiona complex crime which cannot be managed alone by any nation. It has to be acknowledgedthat a critical need is required to strengthen the global cooperation so that the issuecan be overcome as a whole and in an integrated way. The MACC is not only involvedin this mainstream issue but plays a contributing role in knowledge sharing at theinternational level, in particular the contribution of skills in various fields through theconduct of meetings and conferences.As a consequential to the involvement, various countries have extended invitations tothe MACC in presenting its working papers, have their officers undergo training at theMACA and seconded their officers to few of the MACC Divisions. Additionally, Malaysiahas also been entrusted to organize various international conferences and meetings.The Chief Commissioner of MACC was also appointed as members to few internationalanti-corruption bodies. Malaysia has also signed numerous bilateral agreements withother countries. This reflects the confidence of the international community towardsthe effectiveness of the MACC in its fight against corruption.• Appointments and MembershipsIn International Bodies1st International Anti-Corruption Academy (IACA) International Academic AdvisoryBoard Meeting, Vienna, AustriaThe IACA is a joint initiative by the United Nations Office on Drugs and Crime (UNODC),The Republic of Austria, the European Anti-Fraud Office (OLAF) and other stakeholdersagainst corruption by generating modules that combine the expertise and experiences ofvarious countries, agencies and organizations.The MACC is one of the agencies which was requested to contribute its expertise in theformation of the module. The confidence shown by the international community towardsthe MACC was further demonstrated by the appointment of Dato’ Sri Hj. Abu Kassim BinMohamed, Chief Commissioner of MACC to be one of the member in the InternationalAcademics Advisory Board in IACA, responsible for providing advices on the developmentof the curriculum and determining the academic structures of IACA. The first Boardmeeting held from 10 to 12 June 2010, was attended by the Chief Commissioner of MACChimself.112

2010 Annual ReportMalaysian Anti-Corruption CommissionInternational Association of Anti-Corruption Authorities (IAACA) Executive Meeting,Salvador, BrazilDato’ Sri Hj. Abu Kassim Bin Mohamed, Chief Commissioner of MACC, is one ofthe IAACA Executive Committee Members and actively involves in anti-corruptionactivities that are organized by the IAACA. The IAACA Executive CommitteeMeeting was held in Salvador, Brazil from 9 to 11 April 2010.6th Secretariat Meeting of South East Asia Parties Against Corruption (SEA-PAC),Hanoi, VietnamThe SEA-PAC is a forum that brings together anti-corruption agencies within theSouth East Asia region as a platform to share knowledge and experiences in combatingcorruption. It is also a platform to promote ties and foster cooperations among theseagencies. The SEA-PAC’s confidence towards the MACC was acknowledged with thehonour of becoming the Permanent Secretariat for the Meeting of Parties to theMemorandum of Understanding on Preventing and Combating Corruption establishedunder the SEA-PAC initiatives. This role has enabled the MACC to actively assist in theplanning and implementation of activities under the SEA-PAC initiatives and to providesupport to the States member in strengthening their capabilities in anti-corruptionefforts for the benefits of the whole region.• Presentation of Working PapersThe 4th IAACA Annual Conference and General Meeting, Macau, ChinaThe presentation of two working papers in the 4th Annual Conference and General IAACAMeeting from 2 to 6 November in Macau, China, expresses the organizers confidence onthe MACC’s commitment in tackling corruption within the region as Malaysia came to bethe only country that has sent her two presenters to the conference.In Session III of the Conference, the Chief Commissioner of MACC was given the mandateto present a working paper entitled International Cooperation, which was related directlyto the Article 43 of the International Cooperation Chapter IV of the United NationsConvention against Corruption (UNCAC). The trust given to Malaysia and in particular tothe MACC, was indeed a noble recognition for her experiences and expertise in fightingcorruption for over 44 years. During Session IV, Datuk Liew Vui Keong, Deputy Ministerof the Prime Minister’s Office presented his paper entitled “International Cooperation inCombating Corruption”, which was too related to the Article 43 of the Chapter IV of theUNCAC.113

INDEPENDENT • TRANSPARENT • PROFESSIONALSeminar on Integrity in Public Service, Brunei DarussalamOn 4 March 2010, the Chief Commissioner of MACC had presented a paper entitled“Integrity in Public Service”.5th Multi Country Study Mission on Public Governance, Republic of KoreaOn 6 October 2010, the Chief Commissioner of MACC presented a paper entitled“Best Practices of Anti-Corruption Policy and Efforts to Raise Integrity andTransparency in Major Countries” whilst his Deputy (Prevention) presented on“Anti-Corruption Mechanism to Enhance Transparency, Integrity and Accountabilityin Public Administration : The Malaysian Experience”.14th International Anti-Corruption Conference (IACC), Bangkok, ThailandA paper entitled “Follow the Money to Curb Forest Crime” was also presented by the ChiefCommissioner of MACC during the 14th International Anti-Corruption Conference (IACC)held in Bangkok, Thailand on 11 November 2010.Conference of the Arab Anti-Corruption Integrity Network, Sana’a Republicof YemenThe Director of Investigations Division of MACC, Hj. Mustafar Bin Ali, on 27 July2010 was invited to present a paper entitled “Strengthening Integrity and CombatingCorruption:Malaysian Experience” at the Conference and Workshop coordinated by theUNDP with the collaboration of the Supreme National Authority on Anti-CorruptionCommission (SNAAC).Conference on Building Strategic Anti-Corruption Partnership in the Arab Regionand the Regional Workshop on Anti-Corruption Agencies, Amman, JordanOn 28 October 2010, the Director of Investigations Division again took the stand ofpresenting a paper entitled “Anti-Corruption Agencies:International Standards andPractical Experiences - Malaysian Perspectives” at a Conference and Workshop organizedby both the United Nations Development Programme (UNDP) and Jordanian Anti-Corruption Commission, the Hashemite Kingdom of Jordan.10th Regional Seminar of the Asian Development Bank (ADB)/Organisation forEconomic Cooperation and Development (OECD)The MACC through its Assistant Director of the Investigations Division of MACC on 23September 2010, took the platform of presenting a paper on “Challenges in Establishingand Applying Domestic and Foreign Bribery Offences in Malaysia”.114

2010 Annual ReportMalaysian Anti-Corruption CommissionFor the third subsequent month, on 24 September 2010, Hj. Mustafar Bin Ali again tookthe stand of presenting a paper on “The MACC’s Use of Special Investigative Techniques inthe Investigation of Bribery Cases”, followed with the presentation on the success story of“Fight The Giver Campaign” by Dato’ Hjh. Sutinah Binti Sutan.Participants on the 10th Regional Seminar Criminalisation of BriberySouth East Asia Parties Against Corruption Annual Meeting and Forum onImplementation of UNCAC, Simreap, CambodiaIn November 2010, the MACC through two of its Officers namely, Dato’ Ahmad Khusairibin Yahaya, Director of Corporate Communication Unit and Abdul Razak bin Hamzah fromthe Policy, Research and Planning Division had presented papers entitled “Gaining PublicSupport via Social Media” and the latter on “Implementation of UNCAC in Malaysia”.• Positive Comments From Individualsand International BodiesMr. Tran Van Truyen, Chief Inspectorate, Government Inspectorate of Vietnam (GIV)“MACC is one of the best agencies in combating corruption and present a good exampleto us in obtaining expertise and knowledge from the MACC” were the comments madeby Mr. Tran Van Truyen, Chief Inspectorate of GIV after the signing of the MOU with theMACC.Mario Amano, Deputy Secretary-General Organisation for Economic Cooperationand Development (OECD)“We are amazed with Malaysia’s progress in demonstrating the right way of handlingthe felony of giving and receiving bribery and imposing a prison term and penalty toindividuals and companies” - Mario Amano, OECD Deputy Secretary General of OECDduring the participation in the 10th Regional Seminar of the ADB/OECD Anti-CorruptionInitiative for Asia and the Pacific in Kuala Lumpur on 23 to 24 September 2010.115

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Memorandum of UnderstandingMemorandum of Understanding between the MACC and the GovernmentInspectorate of Vietnam (GIV)On 2 April 2010, Dato’ Sri Hj. Abu Kassim Bin Mohamed, Chief Commissioner of MACCand Mr. Tran Van Truyen, Chief Inspectorate of GIV had signed a memorandumof understanding in incorporating the two anti-corruption establishments towardsenhancing cooperation within the fields of training, investigation and prevention ofcorruption.• Letter of IntentMemorandum of Understanding between the MACC and the IndependentCommission Against Corruption (ICAC) Hong KongDatuk Mohd Shukri Bin Abdull, Deputy Chief Commissioner (Operations) of MACCand Mr. Daniel Li Ming-Chak, Deputy Commissioner, ICAC Hong Kong signed aMemorandum of Understanding representing both the MACC and the IACC Hong Kongrespectively on 30 July 2010.Memorandum of Understanding between the Malaysia Anti-Corruption Academy(MACA) and the International Anti-Corruption Academy (IACA)On 30 July 2010, Dato’ Samarajoo Manikam, Director of MACA and Mr. Martin Kreutner,Chairman of the International Steering Committee, IACA agreed to collaborate in the areaof training and research involving the prevention of corruption.• Sharing of Knowledge and ExpertiseAsia Pacific Economic Cooperation (APEC)The APEC which comprises of 21 countries, representing the capacity of 40.5% of thepopulation, 54.20% of GDP and 43.7% of the world’s trade value, has further enablethe cooperation to become an important forum in facilitating economic coalition, tradeand investment in the Asia Pacific region. With the understanding that corruption is ahindrance to the economic development and the rising of businesses costs, the APEC hastaken the initiative to create the Anti-Corruption and Transparency Experts Task Force(ACT).116

2010 Annual ReportMalaysian Anti-Corruption CommissionThis initiative aims to coordinate the implementation of various measures in preventingcorruption and fostering the practices of integrity in governance and economy withinthe Asia Pacific region. Since its establishment in 2005, the MACC, along with othercountries has taken an active role in enhancing the prevention of corruption effortsthrough discussions and presentation of views in the event of producing the 2010 - 2015mid-term work plans. The credence shown by the international community towards theMACC’s initiatives was highlighted when the proposal for all the member countries to payheed on the improvement efforts in the partnership between the public and private sectoras well as the knowledge that good governance does not well depend on the profits gainedwere accepted and will be undertaken as one of the four plans to be implemented withinthe predetermined duration of 5 years.United Nations Convention against Corruption (UNCAC)The UNCAC is the first legally binding international anti-corruption instrument whichobliges its States Parties to implement detailed range of anti-corruption measuresaffecting their laws, institutions and practices. These measures aim to promote theprevention measures, criminalization and law enforcement, international cooperation,technical assistance and information exchange, asset recovery, and mechanisms forimplementation. The UNCAC ratification made by Malaysia has delivered great impactespecially on the unification of the anti-corruption cooperation at international level andas such continue to propel the MACC’s active participation as followings:-a. The Conference of State Parties (COSP) to the UNCAC from 9 - 13 November 2009in Doha, Qatar has consented on the monitoring mechanism for implementationof the Convention. Following this, the Inaugural Meeting of the ImplementationReview Group of the UNCAC was held from 30 June to 2 July 2010 and 29 Novemberto 1 December 2010 in Vienna, Austria respectively. The MACC representing Malaysiahas been involved in preparing terms of reference for the implementation of amonitoring mechanism and assisted the UNCAC to identify seven internationalexperts to sit on the monitoring committee.b. The four main agendas under the UNCAC ratification are prevention measuresof corruption, criminalization and law enforcement, international cooperationand asset recovery. Several work groups have been established to coordinate theimplementation of these agendas. Meeting of the Working Group on the Preventionand Asset Recovery of the UNCAC was held from 13 to 17 December 2010 in Vienna,Austria focusing on the agendas of prevention and asset recovery.15th Steering Group Meeting and Regional Seminaron Criminalisation of Bribery of the ADB/OECD117

INDEPENDENT • TRANSPARENT • PROFESSIONAL• International Meetingsand Conferences15th Steering Group Meeting and Regional Seminar on Criminalisation of BriberyCountries in the Asia-Pacific region through international cooperation have resolved tocooperate in the fight against corruption by establishing action plan known as the Anti-Corruption Initiative for Asia-Pacific under the joint leadership of ADB and OECD.The action plan attests to the specific goals and standards for keeping up with resistanceagainst corruption in the economic, social and political sphere among the regionalcountries. The ADB/OECD confidence towards the MACC was reflected through thechoosing of the Commission as the host to the 15th Steering Group Meeting and RegionalSeminar on Criminalisation of Bribery of the ADB/OECD Anti-Corruption Initiative forAsia and the Pacific held from 22 to 24 September 2010 in Kuala Lumpur. During thismeeting, Dato’ Hjh. Sutinah Binti Sutan, Deputy Chief Commissioner (Prevention) ofMACC took the platform of presenting a paper entitled “Offence of Giving Gratificationto an Agent” (MACC Act 17(b) 2009).The organization of these meetings and seminars is a testimony of Malaysia’s commitmentin promoting and strengthening measures to combat corruption at domestic, regionaland global level. Not only did Malaysia organize meetings, but with the MACC as itsrepresentative, took part in seminars to evaluate the progress of the action planaccordingly as outlined and summarized along the implemented initiatives. A positivefeedback was received during the meeting and has placed Malaysia in an acclaimedposition among the foreign anti-corruption law enforcement agencies.European Union (EU) and Organization of the Islamic Conference (OIC)To address the problems of corruption comprehensively at international level, the MACChas to not only study and understand the methods of prevention of corruption in othercountries, but be conscious of international corruption activities which might occurdomestically. In this regard, the MACC continue to forge rapport with foreign embassiesin Malaysia as to be indulged in anti-graft activities, seminars, talks and gatherings, aswell as to gain their confidence in the nation’s commitment to ensure a corruption freeenvironment.With this in mind, a Luncheon Talk on “Anti-Corruption Efforts in Malaysia” was held inKuala Lumpur on both the dates of 20 May and 14 December 2010. Representatives fromthe EU and the OIC were also present at the session among which were H.E. VincentPiket, European Union Head of Delegation to Malaysia; Eszter Nemeth, DelegationSecretary European Union to Malaysia; and ambassadors from the Czech Republic,Austria, Germany, Slovak Republic, Italy, Finland, Belgium, Romania, Netherlands,Sweden, France, Spain, Denmark, Ireland and Poland. The presence of these participantsdemonstrated confidence and support towards the anti-corruption efforts carried out byMalaysia.118

2010 Annual ReportMalaysian Anti-Corruption Commission• Secondment of Foreign Officers tothe MACCAnti-Corruption Bureau (ACB) - Brunei Darussalam DelegationFrom 21 to 23 April 2010, the Community Education Division (PenMas) of MalaysianAnti-Corruption Commission played host to three important representatives fromthe Anti-Corruption Bureau - Brunei Darussalam headed by Hj. Meraj Bin Hj. Ahmad,Head of Education. The publication aspects adopted by the PenMas in particular to thecreative use of audio visual materials in disseminating anti-corruption communique to thepublic were presented in detail. Technical know-how on the editing of publications and theproduction of video production were also presented to the delegation with a hands-onapproach in learning tactics involving graphic designing in particular to the developmentof publication materials such as poster and brochures. An exchange programme wasensued with the secondment of two PenMas officers to ACB in conducting a Final CutPro Software Design Workshop for ACB and other government agencies in BruneiDarussalam towards the creation of a more creative and effective audio visual anticorruptioncampaign.The Government Inspectorate of Vietnam DelegationDelegation from the Government Inspectorate of Vietnam which was seconded to theMACC from 19 - 26 December 2010 was given exposure on investigation, prosecution,prevention and integrity management procedures. The delegation was also briefed on theMACA anti-corruption roles and operation methods and on how these courses offeredby the MACA be beneficial to foreign participants. The ‘whistle blowers’ protectionmechanism and the MACC communication strategies were also presented to thesedelegates in order for them to better understand the application of various methodsavailable.The Corruption Eradication Commission of Indonesia DelegationThe Intelligence Division played host to the Corruption Eradication Commission ofIndonesia Delegation from 28 June to 7 July 2010. The seven day study tour for nineofficers seconded to the MACC continued to equip the delegation with intelligencetechniques implemented by the Intelligence Division. The session started with theexposure on records and information management as well as the clarification of varioustechnical aspects involved in an intelligence task.International Delegations To MACC119

INDEPENDENT • TRANSPARENT • PROFESSIONAL• Foreign Delegation Visit to the MACCWE ARE EXTREMELY PLEASED THAT THE MACC HAS ALWAYS BEEN LOOKED UP UPON ASTHE CENTRE OF REFERENCE IN FIGHTING CORRUPTION BY OTHER INTERNATIONALANTI-CORRUPTION BODIES. IN THE YEAR 2010, A TOTAL OF 145 DELEGATES FROM12 COUNTRIES AND INTERNATIONAL ORGANIZATIONS HAVE VISITED THE MACC.International Delegations Visit to Malaysia Anti-Corruption Academy (MACA)The MACA, fully recognized as a world class training institute has moved forward byextending cooperations with various local and international agencies. This is seen assignificant as to further strengthen bilateral relationships in the event of fightingcorruption.TABLE 18 : International Delegation Visit to the Malaysia Anti-CorruptionAcademy (MACA)NO DATE DELEGATION1 15 March 2010 National Anti-Corruption Commission (NACC) Thailand2 2 April 2010 Government Inspectorate of Vietnam3 3 August 2010 Commission On Human Rights And AdministrativeJustice (CHRAJ) Ghana4 21 September 2010 Hong Kong Delegation5 23 September 2010 Thailand Delegation6 27 September 2010 Timur Leste Delegation7 15 November 2010 Commission of Integrity ( ACINET ) Iraq8 18 November 2010 Republic of KyrgyzThe working visits served as a means for the MACC to provide information on the vision,mission, objectives and functions of the MACA and the scope of international coursesand facilities offered. As anticipated, the delegates have expressed great interest toparticipate and engage in these international courses organized by the MACA.Photo session between the top managementof the MACC and the delegates from GIV120

2010 Annual ReportMalaysian Anti-Corruption CommissionPROFESSIONALISM121

INDEPENDENT • TRANSPARENT • PROFESSIONALAccountability& Professionalism“Accountability breeds response-ability.”Stephen R. Covey“Professionalism is knowing how to do it, when to do it, and doing it.”Frank TigerThe standards of integrity and accountability imposed by the MACCcontinued to be referred to as an effective benchmark for otherGovernment departments and agencies to emulate. The general publichowever, expects no less than true professionalism in the discharge ofduties and responsibilities entrusted to the MACC. With that in mind,several programmes have been conducted in 2010 in order to meet theprescribed standards.122

2010 Annual ReportMalaysian Anti-Corruption Commission• Integrity Testing ProgrammeTHE ELEMENTS OF GOOD DELIVERY SYSTEM SERVICE IS AN IMPORTANT FACTOR FOR THEMACC TO WARRANT THE ADOPTION OF INTEGRITY TESTING METHOD.In 2010, the MACC conducted anonymous telephone calls experiment as part of theintegrity testing to assess the MACC customer service’s effectiveness and efficiency.These telephone calls were made to all the MACC States and Branches to test on theintegrity and efficiency of officers in answering phone calls from clients. The aspects whichwere assessed are on the friendliness, waiting time, promptness of action and level ofknowledge and skills in explaining information as needed.From the tests conducted there was an increase noticed on the level of efficiency amongthe MACC’s personnel in answering phone calls as compared to the tests conducted in 2009.Accordingly, the customer service efficiency and effectiveness levels managed by theMACC continued to improve from just being satisfactory during the previous year’s toexcellent in the year 2010.• Compliance ManagementTHE COMMON THREAD OF A DYNAMIC AND EXCELLENT ORGANIZATION EMBRACES THEIMPORTANCE OF COMPLIANCE MANAGEMENT AS AN ESSENTIAL ELEMENT OF GOODGOVERNANCE IN THE MACC.In year 2010, the MACC continued with its focus on improving accountability in financialmanagement to all the MACC Responsibility Centre (MRC). The Self Assessment Auditwas conducted by the respective MRC Officers upon the financial managementperformance against the checklist provided by the Audit Division of the Prime Minister’sOffice (PMO). The Excellence and Professionalism Division subsequently conducted thecompliance audit to ensure the results of the valuation achieved in accordance withthe regulations and circulars in force. The steps undertaken had increased the level ofefficiency in financial management through the sound understanding and commitmentof 21 MRC Officers on significance of conducting efficient and effective financialmanagement regimen.Apart from conducting compliance audit for the financial management, surpriseinspections were also conducted to ensure compliance to the enforced regulations.In 2010, the MACC Headquarters performed surprise checks on all the MACC StateOffices on the manner of handling real evidence. The inspections revealed that the overallhandling of real evidence by the MACC State Offices duly comply to the standard rulesand regulations imposed. Not resting on its laurels, several improvements continuedto be made especially on the management of real evidence and the employment of awell-organized storage methods.123

INDEPENDENT • TRANSPARENT • PROFESSIONAL• The Management of Code of ConductTHE MANAGEMENT OF THE CODE OF CONDUCT SHALL ENHANCE THE CHARACTEROF DISCIPLINE IN THE MACC TOWARDS DEVELOPING HUMAN CAPITAL WITH“FIRST-CLASS MENTALITY”.As a law enforcement agency, the MACC has always emphasized on strict disciplineand impeccable conduct among its Officers and Staff. To reinforce the character ofdiscipline and conduct, the MACC Complaints Committee shall perform as a monitoringmechanism to monitor the handling by the Commission of complaints of misconductwhich is non-criminal in nature against Officers of the Commission. The MACC ComplaintsCommittee established under the provisions of section 15 of the Malaysian Anti-Corruption Commission Act 2009 (Act 694), shall also be responsible in identifyingweaknesses in the work procedures and shall make such recommendations as it deems fit.During 2010, the Committee saw a total of 61 complaints/information as compared to the67 complaints in 2009.Of the 61 complaints received, 59 (96.7%) complaints have prompted on the openingof Investigation Papers while two (3.3%) were filed under No Further Action (NFA).Investigations carried out observed the issuance of 10 Disciplinary Board Papers and10 Administrative Warnings.During 2010, 29 cases of Disciplinary Actions were taken with the following penalties;Acquitted - two cases (6.9%), Warning - 12 cases (41.4%), Fine - one case (3.5%),Forfeiture of Emolument - three cases (10.3%), Salary Deferral - five cases (17.2%),Demotion - one case (3.5%), and Dismissal - five cases (17.2%).The MACC Complaints Committee confidently illustrated the strength of transparencyin the handling of cases of misconduct by the MACC Officers and Staff and furtherprovided a sense of accountability to the general public towards the professionalismand obligations of the MACC.124

2010 Annual ReportMalaysian Anti-Corruption Commission• Asset Ownership and DeclarationTHE MONITORING PROCEDURES OF ASSET OWNERSHIP AND SURVEY OF INCOMEPROVIDES INSIGHT TO AN OFFICER’S ECONOMIC MEANS.During 2010, a total of 467 MACC Officers and Staff have made declarations on assetownership as stipulated by the Service Circular No. 3, 2002 and Regulation No. 10 of thePublic Officer Regulations (Conduct and Discipline) 1993. The disclosure saw 173 (37.1%)personnel making a first-time declaration on asset ownership, 293 (62.7%) on acquiringof additional assets and one (0.2%) on disposal of asset. In total, 2,260 of MACCpersonnel have declared their assets’ ownership.The MACC also monitors deductions from employees’ earnings in ensuring that wagescuts is not more than 60% of the emolument. Such actions are taken to ensure that theMACC Officers are free from serious indebtedness. Precaution measures continued to beundertaken by the MACC with the collaboration of the Credit Counselling and DebtManagement Agency (AKPK) in giving briefings on finance and credit management toall of its personnel in Malaysia.• Culture of Innovation and CreativityTHE STRENGTH OF HUMAN CAPITAL IN THE MACC SHALL BE FULLY MOBILIZEDAND HARNESSED FURTHER WITH THE ASSIMILATION OF WORK CULTURE BASED ONINNOVATION AND CREATIVITY.Inculcation of innovation and creativity in service delivery continued to propel theMACC forward in response to the Government’s call for action. As a result of continuoustechnological advances, the MACC took the opportunity to ride along with some of thenew media channels such as the creation of E-Procurement Systems (ESPD), IntegrityVetting System (IVS), Frenz of the MACC, Facebook, Blog, Youtube, Flickr, and Twitter.On 26 April 2010, the MACC Innovation Steering Committee was established to outlinepolicies and strategies in the generation of innovative and creative ideas. Accordingly,29 Innovation and Creativity Teams (ICT) were formed to represent the various MACCDivisions and State Offices. ICT shall perform as an effective management mechanismfor highly skilled human capital in the MACC cognizant to its aspiration to alwaysimprove the level of efficiency and professionalism in its service delivery.125

INDEPENDENT • TRANSPARENT • PROFESSIONALOn 8 November 2010, the MACC had for the very first time organized the MACC ICCConvention showcasing the innovative and creative energy of eight ICT teams, followingthe MACC Innovation Day on 9 November 2010. The theme of “Innovation GeneratesTransformation” was highlighted and went on to recognize and appreciate Officersof the MACC for their high sense of innovation and creativity. During the Convention,two Innovation Awards were introduced in particular for the Service Innovation Categoryand Best Financial Management Category.An ICC team presentinginnovation study paperduring the MACC ICCConvention• Star Rating by MAMPUTHE PUBLIC SECTOR STAR RATING EVALUATION PROGRAMME FUNCTIONS AS A MAJORTRANSFORMATION INITIATIVE FOE THE PUBLIC SECTOR. THE STAR RATING EVALUATIONIS INTENDED TO CREATE A PERFORMANCE BASED CULTURE OF EXELLENCE AMONG THEPUBLIC SECTOR AGENCIES.The MACC level of excellence and efficiency in improving productivity and public servicedelivery system in particular has been assessed by the public service Star Rating Systemrun by the Malaysian Administrative Modernisation and Management Planning Unit(MAMPU). The MACC is among 22 agencies assessed in 2010 with the focus on criteriaof management, core management and client’s management.The MACC has been rated with three stars together with 12 other Government agenciesfrom the assessment undertaken. Proudly, the MACC has achieved excellence rating in thefollowing categories namely project management development and management of ICTand customer and complaints management. Following this, the MACC shall continue todouble up its efforts to achieve a five star rating.126

2010 Annual ReportMalaysian Anti-Corruption CommissionMalaysiaAnti-CorruptionAcademy(MACA)...”It is our hope that MACA will enable anti-corruption officersthroughout the region to be better equipped with the cutting-edgeknowledge and the latest techniques to fight corruption. It is ourfervent hope that the MACA will be a driving force in the fight againstcorruption, ultimately becoming a regional centre of excellence inanti-corruption education and training. This is one of Malaysia’s manycontributions to the international community and specifically, towardsrealising a harmonious and prosperous world free from the blight ofcorruption”...Datuk Seri Abdullah Bin Hj. Ahmad Badawi,Former Prime Minister of Malaysiathe Launching of the Malaysia Anti-Corruption Academy (MACA)on 12 April 2007The establishment of the MACA shall further equip and increase the skillsand professionalism of the MACC Officers and progress as a regionaltraining hub for capacity-building and capability efforts in the field ofanti-corruption.127

INDEPENDENT • TRANSPARENT • PROFESSIONAL• MACA International And RegionalAchievementsCOLLABORATION - MACA AND UNITED NATIONS DEVELOPMENT PROGRAMME(UNDP)The United Nations Development Programme (UNDP) and the MACA are collaboratingon a joint-initiative to strengthen the understanding and the technical know-howand skills of anti-corruption agencies (ACAs) officers in the 57 member states of theOrganization of Islamic States (OIC) through a project known as “Strengthening theInstitutional Capacity of Anti-Corruption Agencies from The Organization of The IslamicConference (OIC) countries to ensure an efficient public delivery system”.Started in July 2010, the project will run until June 2011. The MACA’s determination to seethe initiative evolved into a success expound its commitment and cognizant to its role asthe leading anti-corruption training hub in the Asia Pacific region. This initiative shows toprove that the importance of the MACA in the anti-corruption field does not only presidewithin the realms of our country but goes out beyond into the international scene. Up tothe last quarter of 2010, the project on the needs of training to further develop a relevanttraining module is still in the review of implementation stage with the cooperation of theArab Anti-Corruption & Integrity Network (ACINET).BILATERAL RELATIONS - MACA AND INTERNATIONAL ANTI-CORRUPTIONACADEMY (IACA), AUSTRIAOn 30 July 2010, a Letter of Intent (LoI) was signed between the MACA and the IACA,Austria. Among the highlighted objectives of the LoI are as follows:-a. Coordinate training activities in corruption prevention between the twoorganizations and build cooperations with other international organizations;128

2010 Annual ReportMalaysian Anti-Corruption Commissionb. To enhance the confidence and improve public and internationalcommunity perception on the effectiveness of the MACC’s in preventingcorruption based on the principles of independent, transparency andprofessionalism, in line with the MACC 2010 Aspirations; andc. To make the MACA a world class training centre. So far the MACA has only focusedwithin the Asia Pacific Region. With the signing of this LoI, it is hoped that it couldprove its capacity in the areas of training to a higher level.The course will focus on capacity building in the areas of anti-corruption with a specialfocus on the best practices and good governance implemented at the international level.MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN MACC & HELPUNIVERSITY COLLEGE (HELP)On 10 August 2010, the MACC signed a Memorandum of Understanding (MOU) withthe HELP University College (HELP). Through this MOU, the MACC shall:-a. Extend its cooperation in the research and publication of anti-corruption andsocio-economic development issues and the practice of good governance inbusiness;b. To develop collaboration in the aspects of academic training programme throughthe Master of Science in Economic Crime Management Programme and the MACC’scommitment in providing knowledge and academic support towards the runningof the programme;c. The HELP shall extend scholarships to five MACC Officers yearly to follow on theacademic programme at HELP.The MoU shall further help to generate more qualified and better trained MACC Officers.The Signing Ceremony of Letter of Intent betweenthe MACA and the IACA; and the MACC with theIACC Hong Kong129

INDEPENDENT • TRANSPARENT • PROFESSIONALMEMORANDUM OF UNDERSTANDING (MOU) BETWEEN UKM/MACC FOR SOCIALSCIENCE DEGREE – CORRUPTION STUDIES SESSION 2010 - 2011On 19 November 2010, the MACC signed a Memorandum of Understanding (MoU)with the National University of Malaysia (UKM). The MoU facilitates the University inproviding a Master’s Degree in Corruption Studies of 2010- 2011. The main aims of theprogramme are to:-a. Produce graduates who are highly intellectual and able to provide assessment oncurrent issues pertaining to crime and corruption at international and domesticlevel; andb. Enable graduates to develop critical and analytical thinking skills in preparationagainst the ever challenging anti-corruption efforts.The programme saw the graduation of its first batch of five MACC Officers with Mastersin Corruption Studies during the University 38th Convocation in August 2010.CERTIFIED INTEGRITY OFFICER (CeIO)The programme was implemented following a decision made by the Special Meeting onIntegrity Governance Committee (JKTU) on 18 August 2008 deciding that an anticorruptionagency (ACA) Senior Officers be placed as a Chief Integrity Officers as cadresin all Ministries, departments and agencies that are at risk of exposure to crime, corruptpractices, malpractices, abuse of powers and weaknesses in administration. The pilot CeIoprogramme was launched by the Corporate Integrity Development Centre at the MACAon 2 August 2010. The programme was iniatially conducted on a part time basis over aperiod of six months by following the four main modules of the core syllabus in the CeIOprogramme:-a. Introduction to Integrity Moduleb. Enforcement of Laws/Circular/Regulation/Directive Modulec. Accountability and Integrity Moduled. Integrity Development Plan ModuleA total of 27 officers consisting of five MACC Officers of Grade 44 – 48 onwards, thePublic Service Department of Malaysia, the Social Security Organization (PERKESO), theLabour Department Peninsular Malaysia, the Malaysia Department of Insolvency, YayasanPembangunan Ekonomi Islam Malaysia (YAPEIM), Telekom Malaysia, Tenaga NasionalBerhad (TNB), the Royal Malaysian Police, the National Audit Department, NationalInstitute of Public Administration (INTAN), the Malaysian Institute of Integrity (IIM),PUSPAKOM, Amanah Raya Berhad (ARB), the Public Works Department, the Fire andRescue Department Malaysia, the Royal Malaysian Customs Department, the ImmigrationDepartment of Malaysia and PETRONAS were involved in the pilot programme held inthe MACA.130

2010 Annual ReportMalaysian Anti-Corruption CommissionCommencing in January 2011, this programme is designed to run for a six monthsduration on a part-time basis. In general, CeIO emphasises on efforts to ensureorganizational integrity be conducted in accordance with the Government’s aspirations.The specific duties of the above include the following:-i. Coordinate and monitor integrity programme;ii. To report on any integrity violation;iii. To coordinate actions on violations of integrity;iv. Implementing an integrity rehabilitation programme;v. Production of integrity related articles;vi. Assist and support the Management Integrity Commitee (JKTU);vii. Advise management on aspects of integrity;viii. Monitor the service delivery system;ix. Perform as Liaison Organization Officer to the Corporate Integrity DevelopmentCentre (CIDC), the MACA, andx. Ensure compliance to the rules/regulations of the organization.COLLABORATION WITH TRANSPARENCY INTERNATIONAL MALAYSIAa. Risk Mapping and Anti-Corruption Tools Workshop in Logging IndustryOn 29 April 2010, the Transparency International (Malaysia) and the MACAorganized “Workshop on Risk Mapping and Anti-Corruption Tools” . The objective ofthe workshop is to address and combat corruption within the logging industry. Theworkshop was attended by those in the public and private sectors including GLC’s.Participants were exposed to “Anti-Corruption Tools” to address corruption relatedproblems in the forestry industry starting from the production till the export stages.b. Forest Governance Integrity (FGI) WorkshopFrom 4 to 5 August 2010, the Transparency International (Malaysia), theTransparency International (Indonesia) and the MACA jointly organized aWorkshop on Indonesia-Malaysia Timber Trade and Adaptation of FGI Tools at theAcademy. The programme was customized for both the Malaysian and Indonesianforestry law enforcement officials. The main objective of the workshop is to enhancethe integrity and good governance in the forestry and logging industry and toincrease the network of cooperation and the fight against corruption between thetwo countries. Workshop participants were also exposed to the FGI Anti-CorruptionManual and the application of methodologies.131

INDEPENDENT • TRANSPARENT • PROFESSIONAL• International Training ProgrammesOrganized by the Malaysia Anti-CorruptionAcademy (MACA)UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) – MACA RELATIONSINTERNATIONAL PROGRAMMES THAT ARE ORGANIZED BY THE MACA RECEIVED STRONGGLOBAL RECOGNITIONAs the leading Anti-Corruption Academy in the Asia Pacific region, the MACA throughits International Studies Centre has successfully organized various courses and workshopsin the field of anti-corruption for both domestic and international participants. Theorganized programmes received strong global recognition and drew the interest of manyparties, particularly foreign officers to undergo training at the MACA.a. Corruption Prevention and Risk Management in Public Sector OrganizationsWorkshopHeld from 2 - 8 May 2010, the workshop was developed to enhance the understandingand abilities in evaluating and assessing corruption risks in the public sector.32 participants comprising 17 foreign participants from Brunei Darussalam, SriLanka, Nepal, Maldives, Yemen, Jordan, Philippines and other 15 participants fromlocal enforcement agencies attended the workshop. Workshop participants weretaught to design, execute and regulate the Anti-Corruption Risk Management Planfor their respective organization.b. Forensic Training and Admissibility of Evidence in Court for FijiIndependent Commission Against Corruption (FICAC)Responding to an international request, a training module was held for the FICACfinancial crime investigation officers in Fiji. Several FICAC Officers and the Fiji PoliceForce who attended the course were exposed to various methodologies in criminalinvestigation, forensic accounting and assets recovery. The knowledge gained hadsuccessfully assisted the FICAC in its investigation of the Fiji National ProvidentFund and the prosecution of several ex-senior officers of the said organization. Heldfrom the 10 to 14 May 2010, the course was conducted by PPj Low Koh Koon, Headof MACA School of Legal and Prosecution, along with Professor Syed Noh bin SyedAhmad from the Faculty of Accountancy, UiTM Shah Alam. For the very first time,a course conducted by the MACA was organized in another country and broughtnotable success to the FICAC and even international recognition to the MACA.132

2010 Annual ReportMalaysian Anti-Corruption Commissionc. Executive Certificate Course for Strategic Management of Anti-CorruptionProgrammeThis course was organized by the MACA and the Foreign Ministry of Malaysiafully sponsored by the Ministry of Foreign Affairs under the Malaysian TechnicalCo-operation Program (MTCP). 30 foreign participants and three local enforcementagencies officials attended the programme which was held from 13 till 19 July 2010.The foreign participants were from Indonesia, Maldives, Jordan, Bangladesh, Nepal,Cambodia, Ghana, Guinea, Fiji, Sierra Leone, Uganda, Swaziland, Sri Lanka, Brunei,Djibouti, Mongolia, Namibia, Mauritius, Laos, Bhutan, Pakistan and the Palestine.Participants were exposed to the coordination and implementation of the Anti-Corruption Plan for their relevant organization.d. Senior Executive Certificate Course for Strategic Management ofAnti-Corruption ProgrammeHeld in the MACA on 25 to 29 October 2010, the programme seek to enhance theparticipants competency in eradicating corruption, understanding causes and effectsof corruption, its negative impact to the people and the nation, and to increase theskills and procedures designed in preventing corruption. This programme too aims topromote strong ties and good relationship between the local and internationalauthority agencies. A total of 26 participants; 21 from Brunei, Bangladesh,Cambodia, Fiji, Jordan, Kyrgyz, Maldives, Namibia, Philippines, Sri Lanka, Senegal,Uzbekistan, Uganda, Iraq, Pakistan, Timor Leste, Zimbabwe and Algeria and five (5)MACC Officers attended the course.The closing ceremony of Senior Executive CertificateCourse for Strategic Management of Anti-CorruptionProgramme133

INDEPENDENT • TRANSPARENT • PROFESSIONALe. Investigation and Management of Corruption Workshop for AfghanistanDelegatesFrom 2 to 8 November 2010, the following workshop was held on the requestof the United Nations Office on Drug and Crime (UNODC) at the MACA. A total of15 officers from the High Office of Oversight and Anti-Corruption (HOOAC), theMajor Crime Task Force (MCTF) and the Attorney General’s Office, Anti-CorruptionUnit (ACU), Afghanistan, were trained in the management of investigation oncorruption related cases, community education, forensic accounting, moneylaundering, asset recovery, collection of evidence and cooperation ties in combatingcorruption. The participants were successfully exposed to the methodologies ofinvestigation and the understanding of the certain case studies that requiresdifferent sets of expertise.• MACA’s Commitment in the Development ofHuman Capital Through Organized TrainingProgrammesa. Courses Organized by the Public Service Department of Malaysia (PSD) for theMACA Trainers at Public Training Institute (ILA)A competent and knowledgeable human capital is an all important facet in meetingthe needs of increasing challenges. Instructors from the Academy continued to beexposed to multifaceted training programmes from both locally and internationallyin 2010 and were provided funding and scholarships by the PSD. List of coursesorganized by the PSD-ILA are shown in Appendix 3.b. Courses Customized for the Officers and Staff of the MACCDuring 2010, a total of 55 courses were customized by the MACA. In addition to theprofessionalism required as an MACC Officer, the courses also focus on strengtheningthe knowledge basis and skills required to further enhance one’s career. A total of1623 participants attended the courses with the list of courses shown in Appendix 4.134

2010 Annual ReportMalaysian Anti-Corruption CommissionThe Inspection of Passing Out Paradeby the Chief Commissioner of MACCc. Officer Transition Course for Grade KR17 to Grade P29The establishment of the Malaysian Anti-Corruption Commission saw the creationof a new position from Grade KR17 namely the Investigation Officer post.A transition course for these Grade KR17 Officers to be appointed to the Grade P29was held from March 1 to May 16, 2010 at the Kompleks Falak A1, Khwarizmi,Tanjung Bidara, Malacca. In order to equip these officers to assume these newpositions, they continued to be subjected to further courses such as investigation,intelligence, legal and prosecution, safety, inspection and consultation, communityeducation, administrative and moral values​. A total of 185 Grade KR17 Officersattended the course successfully.d. Basic Training for New WorkforceThe annual basic training course provided by the MACA shall further equip andprepare the new workforces towards the fight against corruption. A total of 165Grade P29 newly appointed officers attended the Basic Course Series 1/2010 on20 June 2010 to 4 August, 2010. Participants were taught on discipline and knowledgeneeded for the prevention of corruption. In order to perform the duties of the newlyappointed Assistant Investigation Officer, participants were also trained and impartedwith the knowledge of law and order, implementation techniques, case investigationstudies, intelligence and the know how of international cooperation in eradicatingcorruption. The Passing Out Ceremony for the Basic Training Course was held on4 August, 2010 at the Palm Springs Resort, Port Dickson, Negeri Sembilan.135

INDEPENDENT • TRANSPARENT • PROFESSIONALe. MACA - Leading Anti-Corruption Capacity Building and Training Centre forLocal Government Agencies and Private SectorsThe Public Service Department of Malaysia has duly recognized the MACA as aPublic Training Institute. During the year 2010, the MACA has successfully conducted11 courses which were attended by 222 civil servants and participants from theprivate sectors. Course participants were exposed to the investigation modules,surveillance and prevention of corruption in public and private sectors. The list ofcourses for both local agencies and private sectors are depicted in Appendix 5.f. Increased Competency and Soft-SkillsThe MACC personnel continued to be exposed to various types of training andsoft-skills approach organized by the various Public and Private Trainingestablishments domestically to further improve the essence of efficiency, skill andprofessionalism. During 2010, a total of 84 training programmes were organized bythe Public and Private Training Institues. A total of 506 MACC Officers and commonstaff attended the courses. The list of courses conducted is shown in Appendix 6.136

2010 Annual ReportMalaysian Anti-Corruption CommissionFINANCE ANDADMINISTRATION137

INDEPENDENT • TRANSPARENT • PROFESSIONAL• StaffingIN ORDER TO ENHANCE AND IMPROVE THE PUBLIC PERCEPTION TOWARDS THECOMMISSION, THE FEDERATION OF CHINESE ASSOCIATIONS MALAYSIA EXTENDEDITS ASSISTANCE TO THE MACC BY PROVIDING 24 NEW OFFICERS OF WELL VERSED INBOTH WRITTEN AND SPOKEN MANDARIN AND OTHER CHINESE DIALECTS.The total number of posts filled in 2010 was 2,260 staff. The breakdowns saw 1,523 postsfor Officers of the Commission and 737 posts for the common staff as compared to 1,382posts for Officers of the Commission and 694 posts for the common staff in 2009. Theincrease of staff was seen in both the Officers of the Commission as well as the commonstaff where the Officers were recruited in carrying out investigations task whilst the lattertowards the delegation of day-to-day duties. The breakdowns of the MACC staffing are asshown in Table 22 and Chart 10 respectively.TABLE 22 : MACC STAFFING FOR YEAR 2009 AND 2010DESCRIPTIONAPPROVEDSTAFFINGFILLEDPOSITIONSVACANCY2009 2010 2009 2010 2009 2010OFFICER OF THE COMMISSION 1839 1805 1382 1523 457 282COMMON STAFF 781 775 694 737 87 38TOTAL 2620 2580 2076 2260 544 320CHART 10 : MACC Staffing For Year 2009and 20102000180016001400120010001382152380060067473740020092000Officer of the CommissionCommon Staff2010138

2010 Annual ReportMalaysian Anti-Corruption Commission• Budget AllocationIN THE YEAR 2010, THE MACC WAS ALLOCATED WITH RM166,569,500.00 UNDERADMINISTRATIVE BUDGET AND RM91, 938,400.00 UNDER DEVELOPMENT BUDGET.A total of RM99,937,200.00 (59.7%) from administrative budget was allocated foremolument, RM61,910,740.00 (37.2%) was allocated for supply and service expenditure,while RM2,878,750.00 (1.7%) was disbursed for asset purchases and RM2,409,810 (1.4%)for grants and fixed charges.CHART 11 : Budget Allocation For Year 2010RM2,878,750 (1.7%)RM2,409,810 (1.4%)RM61,910,740 (37.2%)RM99,370,200 (59.7%)EmolumentServiceand supplyAssetGrants and FixedCharges• DevelopmentTABLE 23 : List of Information Technology Allocation For Year 2010NO DESCRIPTION COST (RM)1 Document Imaging System 691,392.942 CRIS Data Migration 300,000.003 Consultation Services for Information Technology and CommunicationsStrategic Plan 249,871.054 Microsoft CoreCAL 346,000.005 Email Archiving 700,598.006 ICT Asset Procurement 786,550.007 Purchase of Microsoft Desktop 1-year License Extension 243,496.408 Graphics Software 213,600.009 Software Program Code 12,963.2010 Supply of Air-condition Unit for the MACC State of Negeri Sembilan DataCentre 9,770.0011 MACA Network Maintenance 19,875.0012 Renovation Works for MACC State of Perlis (Wiring) 4,860.0013 Supply of SANS UCC Certificate for Microsoft Exchange Software 3,082.0014 Supply of Digital Signature & Mockup Software 4,339.0015 Supply of Application Server Configuration of Government SMS Gateway 10,000.0016 Supply of Digital Pens (IRIS Pen Executive 6) 6,000.00TOTAL 3,602,397.59139

INDEPENDENT • TRANSPARENT • PROFESSIONALa. Information TechnologyIn 2010, the MACC has spent a total of RM3,602,397.59 on the Information andCommunication Technology (ICT) Development Project. Two other ICT projectshave also been implemented namely the MACC Integrity Vetting System (eSTK)and the Key Communicator System.From 1 January 2011, all agencies may submit screening applications through eSTKand the system shall further assist to expedite the vetting process of theseapplications.The Key Communicator System has successfully provided a new communication linkand allows for the Friends of MACC (FoMACC) to channel information to thepublic.b. MACC Office Development ProjectPriority continued to be placed in the development of infrastructure in particularthe development of the MACC offices nationwide. The rationale of having theMACC ‘s own office complex shall instill confidence for the society and prompt thegeneral public to come forward with quality complaints on corruption.Newly completed MACC State of Perak Office140

2010 Annual ReportMalaysian Anti-Corruption CommissionAPPENDIX141

INDEPENDENT • TRANSPARENT • PROFESSIONALAPPENDIX 1LIST OF THE MACC ADVERTISEMENTS IN NEWSPAPERSNO DESCRIPTION NEWSPAPER TYPE OF READERSHIPADVERTISEMENT FIGUREBIL1 Special Advertising Publication For The Sin Chew Daily,Chinese New Year on 14 Feb 2010 Nanyang Siang Pau CNY - Display Adv. 2.25 millionChina Press2 Special Advertising Publication For The Sinar Harian, The Star,Launching of MACC 2010 Aspiration New Straits Time,on 11 March 2010 Sin Chew Daily, ASPIRATION 2010Nanyang Siang Pau, - Advertorial 4.58 millionUtusan MediaMakkal Osai3 Special Advertising Publication For The Sinar Harian, The Star, FIGHT AGAINST“Fight Against The Giver” Campaign Sin Chew Daily, THE GIVER 4.1 millionOffence under sect. 17(b) Nanyang Siang Pau, - Display Adv.on 17 April 2010Utusan Malaysia4 Advertising Publication on Thank You Sinar Harian, The Starin conjunction with Labour Day Sin Chew Daily, LABOUR DAY(1st Series May) on Borneo Post, (Thank You Adv.) 4.35 million01 May 2010 Nanyang Siang Pau, - Display Adv.Utusan Malaysia5 Advertising Publication For The Sinar Harian, The StarDuit Kopi - Di Sebalik Senyuman Lebar Sin Chew Daily, DUIT KOPI(2nd Series May) Borneo Post, (Senyuman) 4.35 millionon 09 May 2010 Nanyang Siang Pau, - Display Adv.Utusan Malaysia6 Advertising Publication For The Fight Sinar Harian, Sunday Staragainst the Giver Campaign - by Y. Bhg. Sin Chew Daily, DUIT KOPITun Abdul Hamid Bin Hj. Mohamad Borneo Post, (Don’t Give, 4.35 million(3rd Series) on Nanyang Siang Pau, Don’t Accept)16 May 2010 Mingguan Malaysia - Display Adv.7 Advertising Publication For The Fight Sinar Harian, Sunday Staragainst the Giver Campaign - Sin Chew Daily, DUIT KOPIAdakah Anda Yang Seterusnya? Borneo Post, (Adakah Anda 4.35 million(4th Series) on 23 May 2010 Nanyang Siang Pau, Seterusnya)Mingguan Malaysia - Display Adv.8 Special Advertising Publication For The Sinar Harian, Sunday StarNational Independance Day on Sin Chew Daily, HARI MERDEKA31 August 2010 Borneo Post, (Budak Tiga Bangsa) 4.35 millionNanyang Siang Pau, - Display Adv.Mingguan Malaysia142

2010 Annual ReportMalaysian Anti-Corruption CommissionNO DESCRIPTION NEWSPAPER TYPE OF READERSHIPADVERTISEMENT FIGUREBIL9 Special Advertising Publication For The Sinar Harian, Borneo Post, HARI RAYA AIDILFITRIHari Raya Aidilfitri Celebration New Straits Times, (Pelita,Ketupat dan 2.1 millionon 10 September 2010 Utusan Malaysia Budak Bersongkok)- Display Adv.10 Special Advertising Publication For The Harian Metro,National Integrity Convention 2010 Utusan Malaysia,on 05 November 2010 New Straits Times, - Display Adv. 3.2 millionBorneo Post,Nanyang Siang Pau11 Special Advertising Publication For The Makkal Osai, DEEPAVALIDeepavali Celebration In Tamil Malaysian Nanban - Display Adv. 360Newspapers on 05 November 2010thousand12 Special Advertising Publication For The Harian Metro, The StarWorld Anti-Corruption Day 2010New Straits Times,on 09 December 2010 Borneo Post, The Sun - Display Adv. 6.71 millionUtusan Malaysia,Nanyang Siang Pau,Sin Chew Daily,Makkal Osai,Malaysian Nanban13 Special Advertorial Publication For The Harian Metro,World Anti-Corruption Day 2010 New Straits Times, - Advertorial 3.6 millionon 09 December 2010Nanyang Siang Pau,The Star, The Sun14 Special Advertising Publication For The New Straits Times, CHRISTMAS DAYChristmas Day Celebration In English Borneo Post, - Display Adv. 2.5 millionNewspapers on 25 December 2010 The Star, The Sun143

INDEPENDENT • TRANSPARENT • PROFESSIONALAPPENDIX 2LIST OF EXHIBITIONS IN 2010NO EXHIBITION TITLE ORGANIZED BY LOCATION DATEBILPERLIS1 Anti-Corruption Exhibition CIMA & Dun Semantan Dewan DUN Semantan 13/02/20102 Anti-Corruption Exhibition Dept. of Youth & Sports Perlis Youth & Sports Complex 2-13/06/20103 Anti-Corruption Exhibition JASA Perlis Perlis JASA Complex 10/07/20104 Anti-Corruption Exhibition Perlis Forestry Dept. Department of Forestry, Perlis 19/07/20105 Anti-Corruption Exhibition UniMaP UniMaP 3-8/08/2010KEDAH1 Anti-Corruption Exhibition Immigration Dept. of M’sia Dept. of Immigration 08/02/20102 Anti-Corruption Exhibition Cultural Dept. Kedah Department of Culture 19-20/02/20103 Anti-Corruption Exhibition RMN Royal Malaysian Navy 30/03/20104 Anti-Corruption Exhibition Kedah Department of Culture 26/04/2010“Fight against theGiver Campaign”5 Anti-Corruption Exhibition MACC Kedah Pekan Rabu, Kedah 23/05/20106 Anti-Corruption Exhibition Muda Agricultural Dev. Muda Agri.Dev. Authority 21-22/06/2010Authority MalaysiaMalaysia Complex, Kedah7 Anti-Corruption Exhibition Prison Dept. Kedah Prison Complex 29/08/20108 Anti-Corruption Exhibition Hua Zong Association Kedah Chinese Assembly Hall 08/08/20109 Anti-Corruption Exhibition“Kempen Gegar Rasuah” UUM UUM 29/10/201010 Anti-Corruption Exhibition Medical Device Bureau Alor Setar Hospital 5/10/201011 Anti-Corruption Exhibition Dept. of Occupational Safety Dept. of Occupational SafetyKedah Kedah 15/12/201012 Anti-Corruption Exhibition National Drug Agency National Drug Agency Dept., 18/12/2010MalaysiaKedahPULAU PINANG1 Juara Rakyat Programme MACC State Legislative Assembly 21/03/2010Tasek Gelugor ParliamentTasek Gelugor2 Let’s Make A Difference MACC Pulau Pinang 26/04/2010Fight Corruption Campaign3 Anti-Corruption Exhibition MACC Sg. Acheh Community Center 20/05/20104 Entrepreneur Expo MACC Sbg Jaya Exposition 06/06/20105 1 Malaysia Exhibition MACC SMK Air Itam 27/06/20106 Anti-Corruption Exhibition MACC Chinese Assembly Hall 21/07/2010P. Pinang7 Anti-Corruption Exhibition MACC SMK Kg. Selamat 24/07/20108 Anti-Corruption Exhibition MACC SMK Tlk Bahang 31/07/20109 “Mai Rioh” Programme SMK Telok Air Tawar SMK Tlk Air tawar 01/08/201010 Dialogue Programme with the Tan Association Butterworth 11/11/2010Tan Association11 Building Industry Integrity Construction Industry Gurney Hotel, P. Pinang 13/12/2010SeminarDevelopment Board12 MACC Penang Reception MACC Gurney Hotel, P. Pinang 23/12/2010144

2010 Annual ReportMalaysian Anti-Corruption CommissionNO EXHIBITION TITLE ORGANIZED BY LOCATION DATEBILPERAK1 National Youth Day Exhibition Perak State Youth and Sports Arena Square, 5-6/6/2010State of Perak Department Teluk Intan Perak2 UPSI Tanjung Malim 12th UPSI UPSI Tanjung Malim 12-15/10/2010Convocation/ExhibitionSELANGOR1 Mobile Counter Programme Subang Bestari Subang Bestari 17/01/2010Residents Association2 Mesra Berbudaya Bersama Shah Alam City Council Dataran Kemerdekaan 23/01/2010Masyarakat CarnivalShah Alam3 1 Malaysia Combat Corruption UiTM Anti-Corruption UiTM Shah Alam 15-26/03/2010Secretariat4 Anti-Corruption Awareness UNISEL UNISEL Bestari Jaya 29-30/03/2010Exhibition5 Anti-Corruption Exhibition UMNO Kota Raja Kota Raja UMNO Division 04/04/20106 Anti-Corruption Exhibition Selangor Agriculture Lobby - Selangor Agriculture 6-8/07/2010Development Corporation Development Corporation7 Community Service Programme UMNO Kuala Selangor UMNO Building 10-11/07/2010UMNO Kuala SelangorKuala Selangor8 Anti-Corruption Exhibition Shah Alam City Council Shah Alam City Council 13-15/07/2010Office9 Bukit Beruntung Juara Rakyat UMNO Bukit Beruntung Padang Jejarum, 24-25/07/2010ProgrammeBukit Beruntung10 MACC Programme with the Kuala Langat Indian Community Centre, 28/07/2010Indian Community, Kuala Langat Residents Association Taman Sri Putera, Banting11 MACC Programme with the Shah Alam City Council Shah Alam 16/10/2010Shah Alam Community12 MACC Programme with the UMNO Klang Community Centre, 23/12/2010Bandar Baru Klang CommunityBandar Baru KlangW.P KL1 Anti-Corruption Exhibition MACC K. Lumpur MACC State Office 28/03/20102 Anti-Corruption Exhibition MACC K. Lumpur MACC State Office 26/6/20103 Anti-Corruption Exhibition MACC K. Lumpur MACC State Office 19/6/2010NEGERI SEMBILAN1 Juara Rakyat Programme UMNO Taman Gadong Jaya, Taman Gadong Jaya, Labu 6-7/03/2010Labu2 Anti-Corruption Exhibition SPRM N.Sembilan MACC State Office 03/04/20103 Youth Day Celebration Youth & Sports Dept. Youth & Sports Complex 29/05/2010Negeri SembilanNegeri Sembilan145

INDEPENDENT • TRANSPARENT • PROFESSIONALNO EXHIBITION TITLE ORGANIZED BY LOCATION DATEBILMELAKA1 Carnival Night City Ministry of Youths & Sports Malacca 11-14/06/20102 Crime Prevention Day RMP Alor Gajah, Malacca 26-27/06/20103 6th UTem Convocation UTeM UTeM, Malacca 06-08/08/2010JOHOR1 Anti-Corruption Exhibition Johor Heritage Foundation Johor 06/02/20102 Anti-Corruption Exhibition Ministry of Domestic Trade Johor 07/03/2010and Consumer Affairs3 Anti-Corruption Exhibition MACC Today Mall 21/03/20104 Anti-Corruption Exhibition Segamat District Office Segamat District Office 10/04/20105 Anti-Corruption Exhibition Youths & Sports Dept. Youths & Sports Dept. 16/04/20106 Anti-Corruption Exhibition MACC Johor MACC State Office 26/04/20107 Anti-Corruption Exhibition Segamat District Education Office 26-27/04/2010Education OfficeDistict of Segamat8 Anti-Corruption Exhibition Johor Education Foundation Johor Education Foundation 27-30/04/20109 Anti-Corruption Exhibition MACC Johor MACC 23/05/201010 Anti-Corruption Exhibition MACC Kluang MACC State Office 31/05/2010Branch11 Launching of the Municipal Pasir Gudang Municipal Pasir Gudang, Johor 26-30/06/2010Council Aqabah Tower : CouncilPasir GudangMunicipal Council12 Anti-Corruption Exhibition Pasir Gudang Municipal Pasir Gudang Municipal 01-04/07/2010CouncilCouncil, Johor13 Anti-Corruption Exhibition Pilgrims Fund Board Pilgrims Fund Board 13/07/2010Complex14 Anti-Corruption Exhibition Batu Pahat Office of the Batu Pahat 18/07/2010Municipal CouncilMunicipal Council15 Anti-Corruption Exhibition Johor Youth Council Johor Youth Council Office 30-31/07/201016 Anti-Corruption Exhibition 4B Youth Movement 4B Youth Movement Complex 01/08/201017 Anti-Corruption Exhibition Johor Public Complaints Johor Public Complaints 01/08/2010BureauBureau Complex18 Anti-Corruption Exhibition PTP PTP 04/08/201019 MACC Programme with the Muar Indian Association Muar Community Hall, 06/08/2010Indian Community, JohorJohor20 Malaysia Anti-Corruption UTHM Anti-Corruption UTHM 06/09/2010Secretariat Programme Secretariat21 Anti-Corruption Exhibition MACC Johor MACC State Office 29/09/201022 Anti-Corruption Exhibition SMK Felcra Bukit Kepong SMK Felcra Bukit Kepong 9-11/11/2010Muar23 Program with the Johor Johor Public Complaints Johor Public Complaints 13/11/2010Public Complaints Bureau Bureau, Johor Bureau Complex, Johor24 Programme with the Johor State Govt. Office Johor State Govt. Office 20/12/2010General Public in JohorPAHANG1461 Anti-Corruption Exhibition MACC Tun Razak Complex, 08/01/2010Bdr. Indera Mahkota, Pahang2 Youth Week 2010 Pahang Youth & Sports Pahang Youth Complex 29/05/2010State of PahangDept.3 Graduate Induction Week Malaysia University, Pahang UMP Sports Complex 08.07.20102010 UMP

2010 Annual ReportMalaysian Anti-Corruption CommissionNO EXHIBITION TITLE ORGANIZED BY LOCATION DATEBIL4 Pahang MACC Gerak Mesra MACC Annexe Rest House, 12/07/2010Programme with the MediaPahang5 Closing Ceremony of Mesra Luit State Assembly Pahang Radio Station 15/12/2010Rakyat Programme LuitAssembly, MaranTERENGGANU1 Juara Rakyat Programme Terengganu State Govt. Kuala Telemong, 18-20/03/2010OfficeHulu Terengganu2 MACC 2010 ASPIRATION MACC Tionghua Assembly Hall, 11/06/2010ProgrammeKuala Terengganu3 Anti-Corruption Exhibition Sultan Zainal Abidin FELDA Chalok, 23/10/2010University (UnisZA) Anti- Setiu TerengganuCorruption Secretariat4 ‘Sayangi Rakyat’ Programme AADK Kampung Seberang 06/11/2010Pintasan, DungunKELANTAN1 Anti-Corruption Exhibition Kelantan Kelantan 3/4/2010Education Department Education Department2 Anti-Corruption Exhibition UMK UMK 24/4/20103 Anti-Corruption Exhibition UMK UMK 25/4/20104 Anti-Corruption Exhibition Kota Bharu Kota Bharu 8-10/6/2010Municipal CouncilMunicipal Council5 New Students Induction Week UMK Anti-Corruption UMK 3-4/7/2010Universiti Malaysia Secretariat Kelantan (UMK)6 Anti-Corruption Exhibition Bachok District Office Bachok District Office 20-21/7/20107 In conjunction with the UMK Anti-Corruption UMK 30/7/2010Establishment of Clubs and SecretariatStudent Bodies forUniversiti Malaysia Kelantan(UMK) 20108 Kelantan MACC Information MACC Kelantan Tiong Hwa 11/8/2010and Dialogue Meeting withAssembly HallThe Federation Of ChineseAssociation Of Kelantan9 Anti-Corruption Exhibition MACC Kelantan Federal Building 14/10/2010Lobby10 Anti-Corruption Exhibition Akademi Memandu Berhemat Akademi Memandu Berhemat 29/11/2010Kota Raya Sdn. Bhd. Kotaraya Sdn. Bhd.11 Round Table Discussion MACC Awana Inn Tok Bali 21/12/2010ProgrammePasir Puteh Kelantan12 Anti-Corruption Exhibition PUSPAKOM PUSPAKOM, Kelantan 01/12/201013 Anti-Corruption Exhibition MACC Yakin Pandu 27/12/2010147

INDEPENDENT • TRANSPARENT • PROFESSIONALNO EXHIBITION TITLE ORGANIZED BY LOCATION DATEBILSABAH1 Anti-Corruption Exhibition Fire and Rescue Dept. Fire and Rescue Dept. 07/01/2010of Malaysiaof Malaysia2 Anti-Corruption Exhibition MACC Dewan Orang Ramai 22/01/2010Kota Kinabalu3 Anti-Corruption Exhibition IIM/ UMS UMS 13/03/20104 Anti-Corruption Exhibition IIM/ UMS UMS 14/03/20105 Anti-Corruption Exhibition IIM/ UMS UMS 15/03/20106 Anti-Corruption Exhibition IIM/ UMS UMS 16/03/20107 Anti-Corruption Exhibition Juara Rakyat Kota Kinabalu 17/03/20108 Anti-Corruption Exhibition St. Patrick St Patrick 22/03/20109 Anti-Corruption Exhibition Juara Rakyat Kota Kinabalu 23/03/201010 Anti-Corruption Exhibition Juara Rakyat Kota Kinabalu 27/03/201011 Anti-Corruption Exhibition JPJ Tawau Pej. JPJ Tawau 28/03/201012 Anti-Corruption Exhibition SMK Teknik SMK Teknik 10/04/201013 Anti-Corruption Exhibition JAKIM Sabah Kompleks JAKIM Sabah 28/04/201014 Anti-Corruption Exhibition INSAN Pej. INSAN 26/05/201015 Anti-Corruption Exhibition MACC Dewan Masyarakat 17/06/1016 Anti-Corruption Exhibition MACC Sabah MACC State Office 26/07/1017 Anti-Corruption Exhibition Sandakan Municipal Council Sandakan Municipal Council 16/09/201018 Anti-Corruption Exhibition UMS UMS 05-12/10/201019 Anti-Corruption Exhibition SM ST Anthony Tenom SM St Anthony, Tenom 20-21/10/201020 Anti-Corruption Exhibition Public Complaints Bureau Kota Kinabalu 25/10/2010Public Complaints BureauSARAWAK1 Anti-Corruption Exhibition MACC Dept. of Tourism and 27/03/2010Culture2 Anti-Corruption Exhibition MACC Kuching Polytechnic, 28/04/2010Kuching, Sarawak3 Anti-Corruption Exhibition MACC Kg. Tanjong,Kuching, Sarawak 24/04/20104 Anti-Corruption Exhibition MACC Kaul Festival Site, 23-25/04/2010Mukah, Sarawak5 Anti-Corruption Exhibition MACC Sarawak State Government 12-13/06/2010HEADQUARTERS1481 Launching of First Asean UPM Sultan Alaeddin 16/02/2010Student Convention OfSuleiman ShahLeadership And InterityCollege2 Launching of PNB MSAM Unit PUSPANITAPURI 18/02/2010Investment QuizBuilding3 Surau Al-Mujahiddin UPNM Surau Al-Mijahiddin, 19-20/02/201015 Years Celebration, Bandar Baru BangiTaman Desa Surada4 Management of Stress & UPNM Anjung Nautika, UPNM 24-25/02/2010Mental Health5 Student and The Community UPNM Sect. 8, Phase 2, 21/03/2010ProgrammeBandar Baru Bangi6 UMS Debate Championship UMS UMS 13-14/03/20107 Get Acquainted With the MACC UPSI UPSI 15-17/03/2010Programme In Conjunction With12th UPSI Convocation

2010 Annual ReportMalaysian Anti-Corruption CommissionNO EXHIBITION TITLE ORGANIZED BY LOCATION DATEBIL8 Anti-Corruption Exhibition UKM UKM 22-26/03/20109 Power Station Open Day TNB Putra Hall, SJ Putrajaya 15/04/201010 Transformation Day MINDEF Foyer MINDEF 03/06/201011 12th Brigade Headquarters 12th Brigade Headquarters Warrdieburn Camp, Setapak 16/06/2010Anniversary12 ICU JPM Bowling Championship ICU JPM Water Sports Complex, 26-27/06/2010and Family DayPutrajaya13 Career Day At Aikol UIAM Moot Court Foyer 26-28/07/2010Festival 201014 Higher Education Institute UKM Pustaka Hall, UKM 26-29/07/2010Anti-Crime Carnival 201015 Malaysian Consumer Day 2010 FOMCA Masterskill College, Perak 31/07/201016 Safety and Health Carnival UPM UPM Foyer 01/08/201017 Passing Out Parade Ceremony MACA Palm Springs Resort, 03-04/08/2010Basic Officer’s Course MACCPort Dickson18 6th UTeM Convocation UTeM UTeM 06-08/08/201019 Juara Rakyat Programme AADK Car Park Precint 9, Putrajaya 07/08/201020 A Day With Klasik Nasional Radio Klasik FM Tun Rahah Main Hall, 07/08/2010Menara Tun Razak21 ‘JOM BANTU RAKYAT’ NGO-TP Ampang Jaya 08/08/2010Programme22 5th UniMAP Convocation UniMAP UniMAP 08-13/08/201023 8th USIM Convocation USIM Nilai Indoor Stadium 20-26/09/201024 1 Belia, 1 Kesihatan, UIAM Convest Hill, UIAM 30/09/20101 Keselamatan Programme25 1 Belia, 1 Kesihatan, UIAM Convest Hill, UIAM 01-04/10/20101 Keselamatan Programme26 14th UNIMAS Convocation UNIMAS UNIMAS 06/10/201027 1st UPNM Convocation UPNM UPNM 08-10/10/201028 Eradication of Drugs Programme AADK PPR Desa Rejang, Setapak 09/10/2010With Members of Parliament29 12th UMS Convocation UMS UMS 09-12/10/201030 Bicara Rakyat SPRM Arkib Negara Kuala Lumpur 14/10/201031 23rd UUM Convocation UUM UUM 29-31/10/201032 23rd UUM Convocation UUM UUM 01-02/11/201033 Opening Ceremony of The Prisons Dept. Bentong Prison Complex 11/11/2010Bentong Prison Complex34 Integrity Day Celebration EPF Wisma KSWP, K.Lumpur 22/11/201035 Auxiliary Police Association Auxiliary Police Assoc. Sunway Convention Centre 23/11/2010Conference (APAC)36 Integrity Day Seminar KPM Dewan Serbaguna KPM 25/11/201037 Integrity Day Celebration MINDEF MINDEF Foyer 30/11/201038 Integrity Day Celebration MINDEF MINDEF Foyer 01/12/201039 World Corruption Day MACC PICC, Putrajaya 09/12/201040 International Conference On MACC Wisma SSM 14-15/12/2010Financial Criminology(ICFC 2010)149

INDEPENDENT • TRANSPARENT • PROFESSIONALAPPENDIX 3LIST OF COURSES ORGANIZED BY JPA-ILANOINTERNATIONAL COURSEBILCOURSEDATE1 Secondment to ICAC Hong Kong 3 – 6 August 20102 Managing and Evaluating Learning Development Interventions 1 – 12 November 2010at RIPA International, United Kingdom3 Certified Training Manager / Director Workshop in Chicago, 15 – 19 November 2010United States of AmericaNOCOURSELOCAL COURSEDATE1 Human Capital Management – Identifying & Analyzing Training 22 – 23 November 2010A Holistic & Pragmatic Approach2 2010 Master Training Professional (MTP) 29 November – 2 December 2010150

2010 Annual ReportMalaysian Anti-Corruption CommissionAPPENDIX 4LIST OF COURSES CUSTOMIZED FOR OFFICERS AND STAFF OF MACCNO COURSE TITLE NO. OFPARTICIPANTBIL1 Procedure and Methodology of Interviewing/Examination of Suspects 28Course Series 1/20102 MACC Heads of Investigation Units Course 303 Examining and Handling of Witnesses Course 334 Forensic for Non-Finance Investigation Officers Course 31(Management of Complex Financial)5 Financial Investigational Accreditations Programme (FIAP) 2010 58Module III AMLA Investigation : Process and Procedures6 Roles of Relevant Departments and Agencies in Assistingthe MACC Investigations Course 347 Management of High Profile and Public Interest Cases Course 328 Management of Arrest Course 309 Refresher Course In Finance and Managing a Financial Investigation 23for Accounting Officers10 Management of Exhibits Course 4511 Procedure and Methodology of Interviewing/Examination of Suspects Series 2/2010 3612 Adult and Active Learning Methods Workshop - Collaboration with 10School of Intelligence13 Handling of Sources Course 2714 Individual and Organisational Profiling 2010 Course 2815 Implementing of Intelligence Project Course 3316 Seminar on Stress Management 2617 Basic Photography 3218 Technical Audio Course 2010 3119 Undercover Operations Course 2720 Technical Video Course 2010 1921 Quality Information and Intelligence Papers 2010 Course 3622 Surveillance Operations Course 2723 Undercover And Integrity Testing/ Informant Management Workshop 3024 Basic Prosecution Course 1825 Laws on Forfeiture of Property (Corruption Cases) Course Series 1/2010 2626 Application of AMLATFA 2001 & MACMA 2002 Course 2927 Techniques of Giving Evidence in Court for the MACC Officers Course Series 1/2010 2928 Laws on Forfeiture of Property (Corruption Cases) Course Series 2/2010 2929 Techniques of Giving Evidence in Court for the MACC Officers Course Series 2/2010 3030 Witness Protection Act 2009 Workshop 56151

INDEPENDENT • TRANSPARENT • PROFESSIONALNO COURSE TITLE NO. OFPARTICIPANTBIL31 Prosecution Courses under Penal Code sect. 165, 409, 420 and 40sect. 16, 17, 18, 23, 25 & 26 MACC Act 200932 The MACC’s Aspiration and Big Wins Clinic (Clinic 1) 1733 The MACC’s Aspiration and Big Wins Clinic (Clinic 2) 2034 The MACC’s Aspiration and Big Wins Clinic (Clinic 3) 1635 The MACC’s Aspiration and Big Wins Clinic (Clinic 3) 1936 The MACC’s Aspiration and Big Wins Clinic (Clinic 3) 2337 The MACC’s Aspiration and Big Wins Clinic (Clinic 4) 1438 Introduction to the Organization for Officers and Common Staff 58Course Series 1/201039 Introduction to the Organization for Officers and Common Staff 44Course Series 2/201040 Public Speaking for the MACC Community Education Officers Course 2441 Professional Certification Programme for the MACC Officers- Enhancing Counselling Skills Level I Programme 1942 Management of Government Moveable Asset Course 3243 Introduction to the Organization for Officers and Common Staff 42Course Series 3/201044 Introduction to the Organization for Officers and Common Staff 32Course Series 4/201045 Functional English at Work - For Frontliners Course 2446 Investigation Methodology – Inspection and Consultation Course 2747 Financial Management Course 2848 Enhancing Counselling Skills Level II Programme 1349 Effective Negotiation Skills Course 3150 TOT Management Integrity Committee (JKTU) Course 4151 Report Writing and Preparation of Quality Working Paper Series 1/2010 2252 Strategic Media Management for the MACC Directors Workshop 3053 Future Retiree Preparatory Course 2254 Introduction to the Organization for Officers and Common Staff 23Course Series 5/201055 MACC External Coaching Leadership Course 2356 Preparation of SOP Rules and Regulations andthe Basic Course Management Module for the MACC Officers Workshop 16TOTAL 1,623152

2010 Annual ReportMalaysian Anti-Corruption CommissionAPPENDIX 5LIST OF COURSES FOR PUBLIC/PRIVATE AGENCIESNO COURSE TITLE DATENO. OFPARTICIPANTCOURSEBIL1 Investigation and Surveillance Course for the 6 – 8 April 2010/ 23 SchoolTenaga Nasional Bhd (TNB) Officers Series 3 days of1/2010 Investigations2 Investigation Course for the Ministry of 12 – 15 April 2010/ 15 SchoolHigher Education Officers (MOHE) Officers 4 days ofSeries 1/2010Investigations3 Investigation and Surveillance Course for the 20 – 22 April 2010/ 25 SchoolTenaga Nasional Bhd (TNB) Officers Series 3 days of2/2010 Investigations4 Investigation and Surveillance Course for the 4 – 6 May 2010/ 26 SchoolTenaga Nasional Bhd (TNB) Officers Series 3 days of3/2010 Investigations5 Investigation Course for the Kuala Lumpur 17 – 20 May 2010/ SchoolCity Hall (DBKL) Officers 4 days 26 ofInvestigations6 Investigation Course for the Tenaga Nasional 1 – 3 June 2010/ 16 SchoolBhd (TNB) Auxillary Police Officers Series 4/2010 3 days ofInvestigations7 Investigation Course for the Department 21 – 23 June 2010/ 15 Schoolof Insolvency Malaysia Officers 3 days ofInvestigationse-insolvensi153

INDEPENDENT • TRANSPARENT • PROFESSIONALNO COURSE TITLE DATENO. OFPARTICIPANTCOURSEBIL8 Investigation Course for the Ministry of 19 – 22 July 2010/ 14 SchoolHigher Education Officers Series 2/2010 4 days ofInvestigations9 Investigation Course for the Enforcement 21–24 September 26 Schooland Inpectorate Division Officers, Ministry of 2010/ ofHigher Education (MOHE) 4 days Investigations10 Investigation Course for the Pembangunan 27–30 September 14 SchoolSumber Manusia Berhad (PSMB) Officers, 2010/ ofMinistry of Human Resources 4 days Investigations11 Public Works Department Integrity 2 – 4 June 2010/ 22 School ofOfficers’ Course 3 days Management& Preventionof CorruptionTotal Participants 222154

2010 Annual ReportMalaysian Anti-Corruption CommissionAPPENDIX 6LIST OF COURSES FOR ENHANCING COMPETENCY AND SOFT-SKILLS FORTHE MACC OFFICERS AND STAFFNO COURSE TITLE NO. OFPARTICPANTBIL1 Evaluation of Public Policy at the INTAN Bukit Kiara 12 Procurement Conference 2010 at The Royale Chulan, Kuala Lumpur 13 Record and Filing Management Course at the Hotel Citrus Kuala Lumpur 14 DSLR Photography Workshop – Event Shooting at the Hotel Vistana, Kuala Lumpur 15 Luncheon Talk – Malaysia’s New Economic Model : The New Economic Change : 2Changing Threats Into Opportunities at the Holiday Inn Hotel Glenmarie, Shah Alam6 Mind and Personal Skills Transformation, at the Singgahsana Hotel Petaling Jaya 107 Secretariat Seminar “Enhancing Personality for Productivity” at the Hotel Astana 88 INTENGAH Executive Series 2/2010 “Towards Creative and Innovative Mindset” 3at the INTENGAH9 Do’s and Don’ts in Services, at the Auditorium Hall PMO Putrajaya 910 It Showcase Asia 2010 at the Istana Hotel, Kuala Lumpur 111 “WHY ISO?” Workshop – at the Training Division, C2 Block, Complex C 212 Project Management of Heads of Department and Senior Officers- 2at the Avillion Legacy Hotel, Malacca13 Technology Updates Seminar No. 3/2010, 1 Smarter Government: 2Business Analytics And Optimization14 General Office Assistant Course (Series II) 215 One Day Course No. 3/2010 - Service Record Book Management 2116 Seminar on Essential Skills for Secretaries and PA’s 1017 Annual CSI World Conference Series: International Cyber & Economic Crimes 5(ICEC) Conference18 Embracing Change Course 519 Asset Management Procedures Course 520 Pensions Management in Service Course 1421 The Regional Cambridge International Symposium on 4Economic Crime 2010 Kuala Lumpur22 Project and Procurement Management for Government, Private and 3Public-Private Partnership Projects23 Act Tourism Course Series 1/2010 424 Seminar on Adopting Islamic Laws in Malaysia in Addressing 9Social Problems25 ASEAN Conference: Records & Information Management Era 2In New Leadership entitled Capture, Access, Storage & Disposal:International Standard, ISO 15489 and Best Practices155

INDEPENDENT • TRANSPARENT • PROFESSIONALNO COURSE TITLE NO. OFPARTICPANTBIL26 Understanding Research Methodology 327 2nd Annual Corporate Governance Summit 2010 Truth, Lies and 3Corporate Governance28 Certified Coaching & Mentoring Professional (CCMP) 229 Computer Virus Removal & Data Recovery and Troubleshooting Computer Networks 230 Investigative Interviewing Techniques 331 Strategic Media Relations & Communication 132 Powerpoint 2007 Application and Being A Calibre Presenter Workshop 633 Management & Leadership Skills For New Managers 334 Managing Effective Training 435 Innovative and Creative Applications in an Organization 236 Training Needs Analysis Workshop 237 Secondment to ICAC Hong Kong Course 438 Audit Reporting & Transparency In Public Sector 539 Secretariat Development Program 140 1 Day Course No. 7/2010 - Bipolar Disorder 1541 1 Day Course No. 8/2010 - Values and Ethics in Public Service 1542 Physical, Document and Personal Safety Workshop 143 Management of Government Records Workshop 244 Generation and Assimilation of Innovation & Creativity Workshop 2045 1 Day Course No. 9/2010 - Laugh Therapy 2046 Management of Department’s Vehicles Workshop 347 Issues and Challenges In Preserving Audio Visual Archieves 6In The Tropical Region Seminar Workshop48 Management of Official Function, Social Etiquette & Protocol 2049 10th Malaysian Plan Briefing (RMK-10) 550 Management of Department’s Vehicles and Driving Skills (Advance) 351 1 Day Course No. 10/2010 - Success Without Stress 3952 Advanced Public Relation And Communication Strategies Using The New Media 253 Symposium On Quality Management ‘Bedrock for Winning Strategy & Leading 2Innovation’54 Leading Innovation Seminar - World’s Leading Futurist, Joel Barker in Kuala Lumpur 155 Executive Development Program (EDP) at Central Officials Training Institute, 1South Korea156

2010 Annual ReportMalaysian Anti-Corruption CommissionNO. COURSE TITLE NO. OFPARTICIPANTBIL56 PHP & MYSQL Course: Advanced 157 9th Public Sector Deputy Accountant’s Conference Year 2010 358 1 Day Course No. 11/2010 - Effective Office Management 1859 Getting Passion Out Of Your Profession Course 260 Courteous Customer Service - Support Group No. 4/2010 161 Managing & Evaluating Learning & Development Interventions at RIPA International, 2London62 Hong Kong ICAC Chief Investigators’ Command Course 2010 in Hong Kong 163 Linux System Administration & Configuration Essentials 164 World Congress Of Accountants 2010 (WCOA) 465 Innovation and Creative Team Course 1866 Performance Management Course 267 Basic PT/PO Series I Course 268 Courteous Customer Service Course 269 1 Day Course No. 12/2010 - Positive Mind Set 2470 Protocol and Etiquette Course 271 1 Day Course No. 13/2010 - Effective Time Management 1872 Basic PT/PO Series II Course 273 1 Day Course No. 14/2010 2674 Human Resource Management Course 275 Program ILA ‘Certified Training Manager/Director Workshop’ 276 Human Capital Management - Identifying & Analysing Training A Holistic 3& Pragmatic Approach77 Disaster Recovery Planning For Information And Communication Technology (ICT) 278 Crisis Management At Work Course 179 Master Training Professional (MTP) 380 Seminar and Dinner - UN Anti-Corruption Day 281 1 Day Course No. 15/2010 - Positive Interaction in an Organization 1182 International Conference on Financial Criminology 5- ‘Deterring Fraud Through Financial Criminology with Islamic Perspectives’83 1 Day Course No.16/2010 - Financial Management For Non-Finance Officers 1384 Generation and Assimilation of Innovation II Course 10TOTAL 506157

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