Anti-Corruption and Bribery at Private Sector and the Requirement of “Adequate Procedure” under Section 17A of MACC Act 2009 Masterclass

In essence, Section 17A of MACC Act 2009 introduces a new statutory corporate liability offence of corruption by a commercial organization under Malaysian law. The commercial organization may be liable for the corrupt practices of its employees and/or any person associated with the commercial organization in cases where such corrupt practices are carried out for the organization’s benefit and advantages whether or not its senior management or its representatives are aware of such corruption act. If a commercial organization is convicted, the penalty under Section 17A (2) is a fine of not less than 10 times the value of bribe or RM1 million, whichever is higher, or imprisonment for up to 20 years, or both. However, the commercial organizations can defend themselves and the only line of defence available under the law is to ensure that “Adequate Procedures” are in place to foster a business environment free of corruption. The Malaysian Prime Minister’s Department has issued the “Guidelines on Adequate Procedures” to assist commercial organizations to put in place the necessary procedures to prevent the occurrence of corrupt practices. These 2 days program assists organization to put in place “Adequate Procedures” as per government guidelines to ensure compliance and prevent penalties under the law. The training also includes disciplining employees for conflict of interest, bribery and misappropriation under the industrial law.