It is normal for ministers to revise their decisions at Cabinet meetings after receiving more information from their officers, a former minister told the High Court.
This was a normal practice among ministers, said Datuk Seri Effendi Norwawi, who was testifying in the trial of former transport minister Tun Dr Ling Liong Sik here.
“Ministers do this. When our officers give us further information, we tell the Cabinet we would like to discuss the issue again in light of the new information.
“We do that,” he said during an examination-in-chief by deputy public prosecutor Manoj Kurup yesterday.
Effendi was the agriculture minister from 1999 to 2004.
He told the court that the Cabinet, at its meeting on Oct 2, 2002, did not have the Valuation and Property Services Department (JPPH) valuation before it when it made a decision to buy a 404.5ha land in Pulau Indah for the Port Klang Free Zone (PKFZ) project.
On Oct 9, the Cabinet put that decision on hold, pending the Finance Ministry's report based on a study by the Attorney-General's Chambers, to see if the purchase was legally feasible.
On Oct 16, Tun Dr Mahathir Mohamad, as Finance Minister, advised the Cabinet that the Attorney-General's Chambers had noted that there were encumbrances on the land and it was not appropriate to proceed with the purchase if the Government would be burdened with this problem.
The Finance Ministry was then asked to present the findings of the Attorney-General's Chambers to the Cabinet as soon as possible.
On Oct 23, the Cabinet made the decision, instead, to acquire the land.
However, on Nov 6, 2002, it reverted to its decision to buy the land.
JPPH deputy director-general Datuk Mani Usilappan had previously testified that a RM25 psf price consideration (for the land) could be used when read together with the 10-year repayment period with a yearly 6% interest and a 5% deposit.
Nett present value of the land was fixed at RM21 psf.
As long as any deferred payment scheme reflected the RM21 psf price when discounted back at a rate of 8.25%, it captured the essence of the JPPH valuation report.
In the sale and purchase agreement, the terms agreed to included the land being purchased at RM25 psf with a 7.5% interest rate for 15 years, with a 10% deposit.
Payment was to only start in the fifth year of the loan tenure.
Dr Ling has claimed trial to an amended principal charge of deceiving the Government by not exposing to the Cabinet an additional interest rate of 7.5% annually in the land purchase for the PKFZ project.
He faces two optional charges of cheating the Government by not revealing to the Cabinet facts pertaining to the interest rate, and deceiving it into believing that facts on the land purchased at RM25 psf and 7.5% interest were certified and agreed to by JPPH when he knew there was no such consent.
Dr Ling is said to have committed the offences at the Prime Minister's office in Putrajaya between Sept 25 and Nov 6, 2002.
The hearing continues before Justice Ahmadi Asnawi tomorrow.
Source : The Star
Related News : Phang: No letter received on inclusion of interest
Friday, October 14, 2011
Wednesday, October 12, 2011
Phang: No letter received on inclusion of interest
Former Port Klang Authority (PKA) general manager O.C. Phang told the High Court that she never received any official letter stating that a RM25 psf land valuation on a piece of land in Pulau Indah was inclusive of interest.
When questioned on a letter she wrote on Nov 15, 2000, which had the various payment methods attached, she replied that it clearly showed that the price of the land was separate from the interest to be paid.
The 65-year-old testified in the trial of former Transport Minister Tun Dr Ling Liong Sik that she also did not receive any letter informing her of this from Kuala Dimensi Sdn Bhd (KDSB), the Finance Ministry, the Transport Ministry, or any other party.
Cross-examined by defence counsel Wong Kian Kheong, Phang – who had been involved in the PKFZ project since 1998 – said she only knew that the price was inclusive of interest in January this year.
Wong: You said two investigating officers (one is ASP Mohd Rosni Mohd Lazim) told you that interest is included in the price?
Phang: Yes.
Wong: Was it recorded in your 112 statement (a statement given to the police under Section 112 of the Evidence Act 1950)?
Phang: I don’t remember if it was recorded.
She said a letter dated June 29, 2002, and sent by Dr Ling to former Prime Minister Tun Dr Mahathir Mohamad, also stated the price was not inclusive of interest.
The letter was to inform that negotiations between the PKA and KDSB had been held on the land purchase based on conditions and terms agreed to by Valuation and Property Services Department (JPPH).
JPPH deputy director-general Datuk Mani Usilappan had previously testified that a RM25 psf price consideration (for the land) could be used when read together with the 10-year repayment period with a yearly 6% interest and a 5% deposit. Nett present value of the land had been fixed at RM21 psf.
As long as any deferred payment scheme reflected the RM21 psf price when discounted back at a rate of 8.25%, it captured the essence of the JPPH valuation report
In the sale and purchase agreement, the terms agreed to included the land being purchased at RM25 psf with a 7.5% interest rate for 15 years, with a 10% deposit. Payment was to only start in the fifth year of the loan tenure.
Dr Ling has claimed trial to an amended principal charge of deceiving the Government by not exposing to the Cabinet an additional interest rate of 7.5% annually in the land purchase for the PKFZ project.
He faces two optional charges of cheating the Government by not exposing to the Cabinet facts pertaining to the interest rate, and deceiving it into believing that facts on the land purchase at RM25 psf and 7.5% interest were certified and agreed to by JPPH when he knew that there was no such consent.
He is said to have committed the offences at the Prime Minister’s office in Putrajaya between Sept 25 and Nov 6, 2002.
The hearing continues before Justice Ahmadi Asnawi tomorrow.
Source : The Star
Related News : I didn’t know what bonds were, says former GM
When questioned on a letter she wrote on Nov 15, 2000, which had the various payment methods attached, she replied that it clearly showed that the price of the land was separate from the interest to be paid.
The 65-year-old testified in the trial of former Transport Minister Tun Dr Ling Liong Sik that she also did not receive any letter informing her of this from Kuala Dimensi Sdn Bhd (KDSB), the Finance Ministry, the Transport Ministry, or any other party.
Cross-examined by defence counsel Wong Kian Kheong, Phang – who had been involved in the PKFZ project since 1998 – said she only knew that the price was inclusive of interest in January this year.
Wong: You said two investigating officers (one is ASP Mohd Rosni Mohd Lazim) told you that interest is included in the price?
Phang: Yes.
Wong: Was it recorded in your 112 statement (a statement given to the police under Section 112 of the Evidence Act 1950)?
Phang: I don’t remember if it was recorded.
She said a letter dated June 29, 2002, and sent by Dr Ling to former Prime Minister Tun Dr Mahathir Mohamad, also stated the price was not inclusive of interest.
The letter was to inform that negotiations between the PKA and KDSB had been held on the land purchase based on conditions and terms agreed to by Valuation and Property Services Department (JPPH).
JPPH deputy director-general Datuk Mani Usilappan had previously testified that a RM25 psf price consideration (for the land) could be used when read together with the 10-year repayment period with a yearly 6% interest and a 5% deposit. Nett present value of the land had been fixed at RM21 psf.
As long as any deferred payment scheme reflected the RM21 psf price when discounted back at a rate of 8.25%, it captured the essence of the JPPH valuation report
In the sale and purchase agreement, the terms agreed to included the land being purchased at RM25 psf with a 7.5% interest rate for 15 years, with a 10% deposit. Payment was to only start in the fifth year of the loan tenure.
Dr Ling has claimed trial to an amended principal charge of deceiving the Government by not exposing to the Cabinet an additional interest rate of 7.5% annually in the land purchase for the PKFZ project.
He faces two optional charges of cheating the Government by not exposing to the Cabinet facts pertaining to the interest rate, and deceiving it into believing that facts on the land purchase at RM25 psf and 7.5% interest were certified and agreed to by JPPH when he knew that there was no such consent.
He is said to have committed the offences at the Prime Minister’s office in Putrajaya between Sept 25 and Nov 6, 2002.
The hearing continues before Justice Ahmadi Asnawi tomorrow.
Source : The Star
Related News : I didn’t know what bonds were, says former GM
Tuesday, October 11, 2011
I didn’t know what bonds were, says former GM
Former Port Klang Authority general manager Datin O.C. Phang told the High Court here that she did not know what bonds were.
Questioned by lead prosecutor DPP Datuk Tun Abd Majid Hamzah here, the 65-year-old homemaker said: “I don’t understand (about bonds). I asked my accountant, ‘do you know about bonds’, but he said he also did not know.”
She was the 14th prosecution witness testifying in the trial of former Transport Minister Tun Dr Ling Liong Sik who is accused of cheating the Government by misleading the Cabinet on a land acquisition involving the Port Klang Free Zone (PKFZ).
Phang said that during the course of the PKFZ project, she did not know a land evaluation, at RM25psf, involved the issuance of bonds.
“We did not talk about bonds (in our meetings). It did not come up at all,” she said.
Phang also admitted to only knowing what bonds were in January when an investigating officer, who started a probe into the PKFZ scandal, told her.
Valuation and Property Services Department (JPPH) deputy director-general Datuk Mani Usilappan had previously testified that a RM25psf price consideration (for the land) could be used when read together with the 10-year repayment period with a yearly 6% interest and a 5% deposit. Nett present value (NPV) of the land had been fixed at RM21psf.
In the sale and purchase agreement, the terms agreed to included the land being purchased at RM25psf with a 7.5% interest rate for 15 years, with a 10% deposit. Payment was to only start in the fifth year of the loan tenure.
Dr Ling has claimed trial to an amended principal charge of deceiving the Government by not exposing to the Cabinet an additional interest rate of 7.5% annually in the land purchase for the PKFZ project.
He faces two optional charges of cheating the Government by not exposing to the Cabinet facts pertaining to the interest rate, and deceiving it into believing that facts on the land purchase at RM25psf and 7.5% interest were certified and agreed to by JPPH when he knew that there was no such consent.
He is said to have committed the offences at the Prime Minister’s office in Putrajaya between Sept 25 and Nov 6, 2002.
The hearing continues today.
Source : The Star
Related News : Ex-Treasury man: I did not tell Dr M that PKFZ project not viable
Questioned by lead prosecutor DPP Datuk Tun Abd Majid Hamzah here, the 65-year-old homemaker said: “I don’t understand (about bonds). I asked my accountant, ‘do you know about bonds’, but he said he also did not know.”
She was the 14th prosecution witness testifying in the trial of former Transport Minister Tun Dr Ling Liong Sik who is accused of cheating the Government by misleading the Cabinet on a land acquisition involving the Port Klang Free Zone (PKFZ).
Phang said that during the course of the PKFZ project, she did not know a land evaluation, at RM25psf, involved the issuance of bonds.
“We did not talk about bonds (in our meetings). It did not come up at all,” she said.
Phang also admitted to only knowing what bonds were in January when an investigating officer, who started a probe into the PKFZ scandal, told her.
Valuation and Property Services Department (JPPH) deputy director-general Datuk Mani Usilappan had previously testified that a RM25psf price consideration (for the land) could be used when read together with the 10-year repayment period with a yearly 6% interest and a 5% deposit. Nett present value (NPV) of the land had been fixed at RM21psf.
In the sale and purchase agreement, the terms agreed to included the land being purchased at RM25psf with a 7.5% interest rate for 15 years, with a 10% deposit. Payment was to only start in the fifth year of the loan tenure.
Dr Ling has claimed trial to an amended principal charge of deceiving the Government by not exposing to the Cabinet an additional interest rate of 7.5% annually in the land purchase for the PKFZ project.
He faces two optional charges of cheating the Government by not exposing to the Cabinet facts pertaining to the interest rate, and deceiving it into believing that facts on the land purchase at RM25psf and 7.5% interest were certified and agreed to by JPPH when he knew that there was no such consent.
He is said to have committed the offences at the Prime Minister’s office in Putrajaya between Sept 25 and Nov 6, 2002.
The hearing continues today.
Source : The Star
Related News : Ex-Treasury man: I did not tell Dr M that PKFZ project not viable
Monday, October 10, 2011
Ex-Treasury man: I did not tell Dr M that PKFZ project not viable
A retired senior Treasury official told the High Court that he had never informed the finance minister that a land deal for the Port Klang Free Zone (PKFZ) project was not economically viable.
Former Treasury deputy secretary-general Abdul Rahim Mokti (pic), testifying under cross-examination, was referring to former prime minister Tun Dr Mahathir Mohamad, who was also the finance minister in 2002. The deal involved a 404.5ha piece of land in Pulau Indah.
Questioned by lawyer Wong Kian Kheong (counsel for former transport minister Tun Dr Ling Liong Sik), Abdul Rahim said he had also not conveyed such an information to either his boss then – Treasury secretary-general Tan Sri Shamsudin Hitam – or the Port Klang Authority (PKA).
He, however, admitted that he was not aware until yesterday that the then Special Economic Adviser to the prime minister, Tan Sri Ali Abul Hassan, who had been tasked to look into the viability of the project, found it to be economically viable via the proposed land purchase – as reported to the Cabinet on Nov 6, 2002.
Neither did he convey such information to the Public Accounts Committee (PAC) nor the police when investigations were carried out over the PKFZ scandal.
Wong had also put it to him that his (Abdul Rahim’s) understanding there had been double-counting of interest – when the land was sold at RM25psf with a 7.5% interest rate – was wrong.
Abdul Rahim, who was also previously a PKA board member, disagreed.
Dr Ling has claimed trial to an amended principal charge of deceiving the Government by not exposing to the Cabinet an additional interest rate of 7.5% annually in the land purchase for the PKFZ project.
He faces two optional charges of cheating the Government by not exposing to the Cabinet facts pertaining to the interest rate, and deceiving it into believing the facts on the land purchase at RM25psf and 7.5% interest were certified and agreed to by the Valuation and Property Services Department when he knew that there was no such consent.
He is said to have committed the offences at the Prime Minister’s office in Putrajaya between Sept 25 and Nov 6, 2002.
Hearing continues on Monday.
Source : The Star
Related News : Retired Treasury official says bonds were issued over PKFZ land deal
Former Treasury deputy secretary-general Abdul Rahim Mokti (pic), testifying under cross-examination, was referring to former prime minister Tun Dr Mahathir Mohamad, who was also the finance minister in 2002. The deal involved a 404.5ha piece of land in Pulau Indah.
Questioned by lawyer Wong Kian Kheong (counsel for former transport minister Tun Dr Ling Liong Sik), Abdul Rahim said he had also not conveyed such an information to either his boss then – Treasury secretary-general Tan Sri Shamsudin Hitam – or the Port Klang Authority (PKA).
He, however, admitted that he was not aware until yesterday that the then Special Economic Adviser to the prime minister, Tan Sri Ali Abul Hassan, who had been tasked to look into the viability of the project, found it to be economically viable via the proposed land purchase – as reported to the Cabinet on Nov 6, 2002.
Neither did he convey such information to the Public Accounts Committee (PAC) nor the police when investigations were carried out over the PKFZ scandal.
Wong had also put it to him that his (Abdul Rahim’s) understanding there had been double-counting of interest – when the land was sold at RM25psf with a 7.5% interest rate – was wrong.
Abdul Rahim, who was also previously a PKA board member, disagreed.
Dr Ling has claimed trial to an amended principal charge of deceiving the Government by not exposing to the Cabinet an additional interest rate of 7.5% annually in the land purchase for the PKFZ project.
He faces two optional charges of cheating the Government by not exposing to the Cabinet facts pertaining to the interest rate, and deceiving it into believing the facts on the land purchase at RM25psf and 7.5% interest were certified and agreed to by the Valuation and Property Services Department when he knew that there was no such consent.
He is said to have committed the offences at the Prime Minister’s office in Putrajaya between Sept 25 and Nov 6, 2002.
Hearing continues on Monday.
Source : The Star
Related News : Retired Treasury official says bonds were issued over PKFZ land deal
Sunday, October 9, 2011
Stopping the rot of graft
More people are coming forward to make reports on cases of bribery, not only on bribe takers but also the givers.
OUR garbage has not been collected for five days, the roads not swept for weeks and it is all because of corruption.”
Corruption has become such a big concern among Malaysians that it is even associated with something like uncollected rubbish.
Most Malaysians think the problem is so endemic in our society that it is impossible to eradicate and they are sceptical of the efforts being made to get rid of it.
“I think Malaysia must be the only country where everything that goes wrong is blamed on corruption,” says D. Ravindran, director of corruption NKRA at Pemandu (Performance Management and Delivery Unit), who cites the remark about uncollected rubbish and unswept streets to illustrate the challenge his unit faces in the fight against graft.
We wanted to raise awareness among the corporate sector that it is not acceptable to participate in any way, shape or form of bribery. - D. RAVINDRAN
Acknowledging the complexity of the problem, Ravindran concedes that its very nature makes it a challenge.
“Unlike the other NKRAs, you can't put a shape, form or frame around it. Anyone can get involved in corruption.”
And unlike in some of the other NKRAs, where a single ministry is positioned as the single authority steering the initiatives, you cannot put a face to the fight against corruption.
This war requires the collaborative effort of many ministries and agencies.
“Initially that was the biggest challenge how to get our hands around it.”
Hence, the first efforts involved establishing the building blocks fundamental to the fight, including setting up a cross-functional NKRA team to manage the initiatives.
Agent of change: MACC mascot Agen Lang celebrating the launch of an anti-corruption campaign with Minister in the Prime Minister’s Department Datuk Seri Nazri Aziz (third from right) and MACC chief commissioner Datuk Seri Abu Kassim Mohamed (right). — Bernama
The driving force came at an opportune moment, Ravindran reveals.
“It soon became very evident that we were actually getting the political will from the top to make things happen.
“That not only gave us sufficient encouragement to keep going, but also provided the impetus for the building blocks to start falling into place. That has made it simpler for us to tackle the other aspects.”
The mechanisms established include the Whistleblower Protection Act, the Finance Ministry's integrity pact for government procurement and the establishment of special corruption courts.
Transparency International (TI) chairman Datuk Paul Low views the setting up of the corruption courts as the best achievement of the NKRA in its fight against corruption.
As he points out, TI's recent Global Corruption Barometer showed that 48% of Malaysians believe the government's effort to fight corruption was effective, compared with 28% in 2009.
Optimistic that people's confidence will grow further, Ravindran feels the response shows that the battle is “getting somewhere”.
“It tells us that we are heading in the right direction and that there are things we are doing that are making people stand up and listen.”
Honourable: Top Glove chairman Lim was among the first to support the Corporate Integrity Pledge.
Boosting business health
Another battle being won in the war against corruption is in the corporate front, with the launch of the Corporate Integrity Pledge (CIP) early this year.
The aim is to get the corporate sector to say “No” to bribery, says Ravindran.
“We wanted to raise awareness among the corporate sector that it is not acceptable to participate in any way, shape or form of bribery,” he explains.
By adhering to the pledge, a company is making a unilateral declaration that it will not commit corrupt acts, will work towards creating a business environment that is free from corruption and will uphold the Anti-Corruption Principles for Corporations in Malaysia in the conduct of its business and in its interactions with its business partners and the Government.
In order to promote the companies that have signed the CIP, a CISM Portal has been established.
To date, more than 34 corporate players have signed on to the CIP.
“Initially we went after the large corporations, and we had many who came forward to sign up like AirAsia, Country Heights, Sime Darby, Tenaga Nasional and Top Glove. Soon, a new code will be unveiled specifically for the small and medium players,” he adds.
Low agrees that for the corruption-combat efforts to be effective, actions must be taken in both the private and public sectors.
“The public sector has taken the key initiative, which includes the use of integrity pact as a compliance tool and also tenders to be open. However, the tender process for public contracting must be further improved to ensure objectivity in the award of the tender.”
This includes the issue of the unproductive use of middleman and fixers/facilitators. “They need to be reduced or eliminated if such practice does not provide added value to the projects,” he said.
Agreeing that while the CIP is a great first step towards getting businesses to commit towards eradicating corruption, Tan Sri Lim Wee Chai, chairman of Top Glove, one of the first corporations to make an anti-graft pledge, believes that what is more important now is the commitment from all parties to walk the talk.
“The Government, the corporate sector and every single individual must be honest and transparent in their dealings.
“While businesses commit to stop giving bribes, the Government should ensure all tenders and applications are awarded and approved based on principles of merit and transparency. Any acts of corruption must be dealt with by law immediately, without fear or favour,” he stresses.
Top Glove is one private company that has always taken the issue of corruption very seriously. Even prior to signing the CIP, they have put in place policies and practices to curb bribery in 2009, Top Glove set up a Prevention and Anti-Corruption Committee known as TGPAC.
The TGPAC is aimed at fostering an anti-corruption mindset and instil honest and transparent practices among all Top Glove employees, as well as provide an avenue for its employees to lodge complaints of any corrupt practices in the company. Its employees are required to sign a pledge every year to vouch that they will not condone or be involved in any corrupt practices.
“So, when the government launched the CIP, we did not hesitate to be one of the first to support this noble cause. By signing the Pledge, it further reinforces our seriousness in fighting corruption,” Lim said, adding that they have found it easier to uphold their business ethics of honesty, integrity and transparency since launching the TGPAC and signing on to CIP.
“The enforcement of the anti-corruption practice indirectly helps improve the cost efficiency of our business. We also notice it's easier to attract and retain highly-ethical employees and at the same time, improve public trust of the company.”
The CIP is hoped to improve the perception on Malaysia's business environment, which is crucial to boost our global competitiveness, Ravindran points out.
No less important, he highlights, is to inspire confidence in Malaysians to invest in the country. He cites as example, a recent “experience” he had with Biocon, a pharmaceutical company from India which has partnered Pfizer to develop a diabetes drug. When things became delayed in India, the company surveyed other locations including Malaysia, he tells.
The director of the company conducted an independent study of Malaysia and rated Malaysia as being 60% cheaper than the other countries she went to.
“My question to her was, how many times have you been approached for a bribe? She answered that this is the first place where she was not approached for a bribe. She is confident that Malaysia is a good place to do business.
“When a foreigner can say that, why can't Malaysians believe that too? And she is investing a lot of money here.”
Next step
With the artillery in place, education is the next agenda in the combat against corruption.
“Now we want to work with younger people children and students to educate them about bribery. Early this year, we came up with an icon, called Agent Lang, taken from its namesake helang (eagle).”
He tells they wanted an identity across all agencies as a unified symbol to fight corruption.
“The species of eagle we picked is found only in Malaysia it is black and white to show that there is no grey (in the fight against corruption). It mates for life, which shows that it is very loyal and it eats snakes for dinner goes after the wrong doers.”
Agent Lang was a hit when they introduced it to students of two varsities, shares Ravindran.
As he puts it, the efforts to fight corruption have to be multi-pronged.
“While we continue the other initiatives to eradicate corruption, we are also raising public awareness on how to fight corruption, especially among the younger people.”
Other than education on the different avenues to get justice against corruption, he says, they are also educating the public on how to use these avenues.
He highlights, this is because while the hotline has helped in getting tips on corruption, one major problem is that the public who do use the hotline usually do not provide sufficient information.
“With insufficient information, it is difficult for the authorities to follow up,” he cautions, citing the Whistleblower Act as an example.
There are rules to its use, he stresses, “For example, people can ask for protection but they cannot go to the media to blow the whistle. Members of the public need to know how they can go about it and more importantly, what sort of information is needed it needs to be complete and credible.
“There are also certain ways of reporting, such as going to an enforcement agency to make a report, and not any other third parties. This is something MACC is addressing in its public outreach and Pemandu are working closely with them,” he adds.
Evidence, he concedes, is difficult to get and it is a major crutch in the dispensation of justice.
“Many people complain that cops ask for bribes but when they make a report, it is difficult to prove that he took the bribe. It is always their word against the cop's.”
The authorities can take action more effectively if they immediately report the incident, something that is possible through the hotline.
“If within an hour, more than 10 people complain about the police in that vicinity, an immediate inspection can be launched, and if he is found with more than RM30 on him, he can be taken into custody. Even if he did not take any bribes, he has contravened the regulations.”
More importantly, the public need to realise that anonymous letters or surat layang are simply no longer acceptable, he says.
The good news is that more people are coming forward to make reports on cases of bribery, not only about bribe givers but also the takers.
“Now, we need to focus on how to dispense justice quicker and more effectively,” he says, adding that with the establishment of the specialised courts, steps are being taken to train all the related personnel on dealing with corruption-related cases, specifically the judges.
While the road towards a corruption-free Malaysia is still long, Ravindran is confident that they are moving in the right direction in the fight against graft.
“I feel we have awoken the senses of the nation that it is not right to take or give a bribe. And if they see it happening, they know what to do now.
“We are in no way saying that we have won the battle or that we have totally beaten corruption, but to me, fundamentally it reflects that something right is happening.”
Source : The Star
OUR garbage has not been collected for five days, the roads not swept for weeks and it is all because of corruption.”
Corruption has become such a big concern among Malaysians that it is even associated with something like uncollected rubbish.
Most Malaysians think the problem is so endemic in our society that it is impossible to eradicate and they are sceptical of the efforts being made to get rid of it.
“I think Malaysia must be the only country where everything that goes wrong is blamed on corruption,” says D. Ravindran, director of corruption NKRA at Pemandu (Performance Management and Delivery Unit), who cites the remark about uncollected rubbish and unswept streets to illustrate the challenge his unit faces in the fight against graft.
We wanted to raise awareness among the corporate sector that it is not acceptable to participate in any way, shape or form of bribery. - D. RAVINDRANAcknowledging the complexity of the problem, Ravindran concedes that its very nature makes it a challenge.
“Unlike the other NKRAs, you can't put a shape, form or frame around it. Anyone can get involved in corruption.”
And unlike in some of the other NKRAs, where a single ministry is positioned as the single authority steering the initiatives, you cannot put a face to the fight against corruption.
This war requires the collaborative effort of many ministries and agencies.
“Initially that was the biggest challenge how to get our hands around it.”
Hence, the first efforts involved establishing the building blocks fundamental to the fight, including setting up a cross-functional NKRA team to manage the initiatives.
Agent of change: MACC mascot Agen Lang celebrating the launch of an anti-corruption campaign with Minister in the Prime Minister’s Department Datuk Seri Nazri Aziz (third from right) and MACC chief commissioner Datuk Seri Abu Kassim Mohamed (right). — BernamaThe driving force came at an opportune moment, Ravindran reveals.
“It soon became very evident that we were actually getting the political will from the top to make things happen.
“That not only gave us sufficient encouragement to keep going, but also provided the impetus for the building blocks to start falling into place. That has made it simpler for us to tackle the other aspects.”
The mechanisms established include the Whistleblower Protection Act, the Finance Ministry's integrity pact for government procurement and the establishment of special corruption courts.
Transparency International (TI) chairman Datuk Paul Low views the setting up of the corruption courts as the best achievement of the NKRA in its fight against corruption.
As he points out, TI's recent Global Corruption Barometer showed that 48% of Malaysians believe the government's effort to fight corruption was effective, compared with 28% in 2009.
Optimistic that people's confidence will grow further, Ravindran feels the response shows that the battle is “getting somewhere”.
“It tells us that we are heading in the right direction and that there are things we are doing that are making people stand up and listen.”
Honourable: Top Glove chairman Lim was among the first to support the Corporate Integrity Pledge.Boosting business health
Another battle being won in the war against corruption is in the corporate front, with the launch of the Corporate Integrity Pledge (CIP) early this year.
The aim is to get the corporate sector to say “No” to bribery, says Ravindran.
“We wanted to raise awareness among the corporate sector that it is not acceptable to participate in any way, shape or form of bribery,” he explains.
By adhering to the pledge, a company is making a unilateral declaration that it will not commit corrupt acts, will work towards creating a business environment that is free from corruption and will uphold the Anti-Corruption Principles for Corporations in Malaysia in the conduct of its business and in its interactions with its business partners and the Government.
In order to promote the companies that have signed the CIP, a CISM Portal has been established.
To date, more than 34 corporate players have signed on to the CIP.
“Initially we went after the large corporations, and we had many who came forward to sign up like AirAsia, Country Heights, Sime Darby, Tenaga Nasional and Top Glove. Soon, a new code will be unveiled specifically for the small and medium players,” he adds.
Low agrees that for the corruption-combat efforts to be effective, actions must be taken in both the private and public sectors.
“The public sector has taken the key initiative, which includes the use of integrity pact as a compliance tool and also tenders to be open. However, the tender process for public contracting must be further improved to ensure objectivity in the award of the tender.”
This includes the issue of the unproductive use of middleman and fixers/facilitators. “They need to be reduced or eliminated if such practice does not provide added value to the projects,” he said.
Agreeing that while the CIP is a great first step towards getting businesses to commit towards eradicating corruption, Tan Sri Lim Wee Chai, chairman of Top Glove, one of the first corporations to make an anti-graft pledge, believes that what is more important now is the commitment from all parties to walk the talk.
“The Government, the corporate sector and every single individual must be honest and transparent in their dealings.
“While businesses commit to stop giving bribes, the Government should ensure all tenders and applications are awarded and approved based on principles of merit and transparency. Any acts of corruption must be dealt with by law immediately, without fear or favour,” he stresses.
Top Glove is one private company that has always taken the issue of corruption very seriously. Even prior to signing the CIP, they have put in place policies and practices to curb bribery in 2009, Top Glove set up a Prevention and Anti-Corruption Committee known as TGPAC.
The TGPAC is aimed at fostering an anti-corruption mindset and instil honest and transparent practices among all Top Glove employees, as well as provide an avenue for its employees to lodge complaints of any corrupt practices in the company. Its employees are required to sign a pledge every year to vouch that they will not condone or be involved in any corrupt practices.
“So, when the government launched the CIP, we did not hesitate to be one of the first to support this noble cause. By signing the Pledge, it further reinforces our seriousness in fighting corruption,” Lim said, adding that they have found it easier to uphold their business ethics of honesty, integrity and transparency since launching the TGPAC and signing on to CIP.
“The enforcement of the anti-corruption practice indirectly helps improve the cost efficiency of our business. We also notice it's easier to attract and retain highly-ethical employees and at the same time, improve public trust of the company.”
The CIP is hoped to improve the perception on Malaysia's business environment, which is crucial to boost our global competitiveness, Ravindran points out.
No less important, he highlights, is to inspire confidence in Malaysians to invest in the country. He cites as example, a recent “experience” he had with Biocon, a pharmaceutical company from India which has partnered Pfizer to develop a diabetes drug. When things became delayed in India, the company surveyed other locations including Malaysia, he tells.
The director of the company conducted an independent study of Malaysia and rated Malaysia as being 60% cheaper than the other countries she went to.
“My question to her was, how many times have you been approached for a bribe? She answered that this is the first place where she was not approached for a bribe. She is confident that Malaysia is a good place to do business.
“When a foreigner can say that, why can't Malaysians believe that too? And she is investing a lot of money here.”
Next step
With the artillery in place, education is the next agenda in the combat against corruption.
“Now we want to work with younger people children and students to educate them about bribery. Early this year, we came up with an icon, called Agent Lang, taken from its namesake helang (eagle).”
He tells they wanted an identity across all agencies as a unified symbol to fight corruption.
“The species of eagle we picked is found only in Malaysia it is black and white to show that there is no grey (in the fight against corruption). It mates for life, which shows that it is very loyal and it eats snakes for dinner goes after the wrong doers.”
Agent Lang was a hit when they introduced it to students of two varsities, shares Ravindran.
As he puts it, the efforts to fight corruption have to be multi-pronged.
“While we continue the other initiatives to eradicate corruption, we are also raising public awareness on how to fight corruption, especially among the younger people.”
Other than education on the different avenues to get justice against corruption, he says, they are also educating the public on how to use these avenues.
He highlights, this is because while the hotline has helped in getting tips on corruption, one major problem is that the public who do use the hotline usually do not provide sufficient information.
“With insufficient information, it is difficult for the authorities to follow up,” he cautions, citing the Whistleblower Act as an example.
There are rules to its use, he stresses, “For example, people can ask for protection but they cannot go to the media to blow the whistle. Members of the public need to know how they can go about it and more importantly, what sort of information is needed it needs to be complete and credible.
“There are also certain ways of reporting, such as going to an enforcement agency to make a report, and not any other third parties. This is something MACC is addressing in its public outreach and Pemandu are working closely with them,” he adds.
Evidence, he concedes, is difficult to get and it is a major crutch in the dispensation of justice.
“Many people complain that cops ask for bribes but when they make a report, it is difficult to prove that he took the bribe. It is always their word against the cop's.”
The authorities can take action more effectively if they immediately report the incident, something that is possible through the hotline.
“If within an hour, more than 10 people complain about the police in that vicinity, an immediate inspection can be launched, and if he is found with more than RM30 on him, he can be taken into custody. Even if he did not take any bribes, he has contravened the regulations.”
More importantly, the public need to realise that anonymous letters or surat layang are simply no longer acceptable, he says.
The good news is that more people are coming forward to make reports on cases of bribery, not only about bribe givers but also the takers.
“Now, we need to focus on how to dispense justice quicker and more effectively,” he says, adding that with the establishment of the specialised courts, steps are being taken to train all the related personnel on dealing with corruption-related cases, specifically the judges.
While the road towards a corruption-free Malaysia is still long, Ravindran is confident that they are moving in the right direction in the fight against graft.
“I feel we have awoken the senses of the nation that it is not right to take or give a bribe. And if they see it happening, they know what to do now.
“We are in no way saying that we have won the battle or that we have totally beaten corruption, but to me, fundamentally it reflects that something right is happening.”
Source : The Star
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