TRANSPARENCY INTERNATIONAL MALAYSIA

NEWSLETTER
A Nation Without Corruption, A Society With Integrity
Volume 38 (October-December 2019). KDN Permit No: 11959/03/2019 (025399)

PRESIDENT’S MESSAGE
As the year 2019 ended, the nation continues to struggle to pay its debt caused
by the 1 MDB and SRC scandals. According to the Minister of Finance as of
October 2019, Malaysia has paid close to RM 13.9 Billion for both 1 MDB and the
SRC scandals since 2017.

In November 2019 at the Annual Membership Meeting in Berlin, TI-Malaysia were

represented by the President and the Deputy President and a resolution was
passed to lobby for the return of the stolen assets of the 1 MDB to the Malaysian
people. The resolution received overwhelming support from all the chapters
worldwide.

While the action taken by the government to address the issues surrounding the scandals of 1 MDB, SRC,
Felda and Tabung Haji are commendable, however institutional reforms that Pakatan Harapan promised
are moving at a very slow phase. Similarly the National Anti -Corruption Plan which was launched a year
ago and recently the Prime Minister announced that out of the 115 initiatives, 22 initiatives have been
completed. However this does not mean anything to the general public unless the government makes a
clear disclosure on what these 22 initiatives are.

For Transparency International Malaysia the year 2019 had been a successful year where we completed
our target of organizing the Whistle Blower Protection Forum and the Beneficial Ownership Forum. TI-
Malaysia has written to the Minister of Law YBhg Datuk Liew Vui Keong recommending several
amendments to the existing Whistleblower Protection Act 2010. As for the Beneficial Ownership the
Companies Commission of Malaysia has come up with guidelines for companies to make a disclosure on
the ultimate business owners. The MACC Commissioner Pn. Latheefa Koya was the guest of honor at this
forum. Both forums were funded by MARI –US AID and we thank them for their support.

Moving forward in 2020 TI-Malaysia hopes the government will continue to have the political will to reform
the various institutions and introduce the necessary laws. Among the key reforms are like passing the bill
for Political Funding and Independent Police Complaints and Misconduct Commission (IPCMC) which is
long overdue.

Best wishes,

Dr Muhammad Mohan
President
Transparency International-Malaysia
EDITORIAL

WHEN WILL WE BE THERE?

2019 has no doubt been a hectic year for both TI Malaysia as well as the government and the
enforcement agencies. There was a general sense of achievement as far as the curbing of
corruption in the public sector and the political arena was concerned. Many public and public
sector figures were apprehended and taken to court. Kudos to the MACC and the police for
their diligent efforts in ensuring good governance in Malaysia.

The question therefore arises, with all the reforms that are being implemented to ensure a
corruption free transparent nation, will we able to achieve as an Utopian state that is squeaky
clean, transparent, honest and with full integrity? Isn’t that the objective of all those civil
minded organizations cajoling and prodding the government of the day to meet? Though it
might be impossible, we can at least be somewhere near that objective.

Human civilization is not only based on scientific progress, innovations and infrastructural
development. It can also be described as the maturing of the human mind, the development of
morality and civil behavior built on trust, honesty and integrity. In that aspect, we in Malaysia
have achieved the material progress that makes us a modern nation but truly and honestly can
we be considered a truly civilized nation? If we can eliminated corruption and greed in all
sectors of society, we can simultaneously wipe out crime, contraband, human trafficking, illicit
funds, drugs and a whole lot of ailments that has beset the nation recently.

We believe that we have first to set our moral compass right, beginning with our children at the
youngest possible age. Proper parental guidance plus the inculcation of moral guidelines
through a righteous educational medium will nurture citizens with the right perception of a just
society. Only then, can we be there – a globally respected nation, admired by all.

In that respect, we at TI Malaysia are privileged to be part of the global effort to benchmark
nations and act as the moral barometer to measure the state of progress in instituting a
corruption free nation through our much anticipated Global
Corruption Perception Index. Malaysia, we are sure would have
gained much ground to rise in its ranks but there is still a lots of
work to do before we reach our Utopian state.

Sivasangaran Nair

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MEETING WITH BAR COUNCIL
AMENDMENT NEEDED IN THE
WHISTLEBLOWER PROTECTION LAW

A short meeting was held between TI-Malaysia

and the President of the Bar Council, Dato
Fareed Abdul Gafoor on 8 October at the Bar
Council office in Kuala Lumpur. It was a very
beneficial meet, despite being very brief where
we discussed various issues enveloping
Malaysia especially in the amendments to the
Whistleblowers Protection Act 2010.
(L-R): Adlina, Dr Mohan and Dato Fareed

COURTESY MEETING TO
TI-INDONESIA
WORK UPDATES

Dr. Mohan visited Transparency International

chapter in Indonesia (TII). He met Mr. Dadang
Trisasongko, Secretary-General of TI-Indonesia
discussed on the current works that are being
engaged by both TI-M and TII.

(L-R): Mr. Dadang and Dr Mohan at TI-Indonesia’s office

COURTESY MEETING WITH

CORRUPTION ERADICATION
COMMISSION, INDONESIA
SHARING INFORMATION
Dr Mohan went to visit Ibu Putri Rahaya at the
Corruption Eradication Commission (KPK). They
shared information on efforts being taken to tackle
the issue surrounding Beneficial Ownership.

Dr Mohan with Ibu Putri at Corruption Eradication Commission’s

office

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CLEAN GOVERNMENT TRANSPARENCY TAIWAN 2019
TO BOOST INTEGRITY AND ENHANCE TRANSPARENCY

TI-M Secretary General, Mr Raymon Ram

was invited to present a paper at the “Clean
Government Transparency Taiwan:
International Exchange Activities Series” in
Taichung, Taiwan on the 3rd and 4th
October 2019. He briefed delegates from
the public and private sector on current
anti-corruption initiatives in Malaysia and
was invited to participate in a forum session
to give feedback on projects being
undertaken by the City of Taichung to boost
integrity and enhance transparency.

Group photo of participants during the forum

CORRUPT MONEY FLOWS

FORUM IN BERLIN
KEEPING TRACK OF ILLICIT
CROSSBORDER FUNDS

TI-M Secretary General, Mr Raymon Ram

was invited to participate and share his
insights on Beneficial Ownership
Transparency at the “Corrupt Money Flows”
workshop from 24th -25th October 2019 at
the Transparency International Secretariat
Office in Berlin. As a senior representative
from Asia, he had discussed and put forth
his thoughts on various matters surrounding
the issue with colleagues from the
European Union and African Nations. Points
gathered are then to be put forth as a
collective stance toward proposed reforms.

Mr Raymon shared the Beneficial Ownership framework in

Malaysia

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WHISTLEBLOWER PROTECTION LAW FORUM
REVAMPING THE WPA 2010

30 OCTOBER 2019

From left-right: Pn Norfarhana, Dr Loi, Mr Jesper, Dr Mohan, YB Datuk Liew Vui Keong, HE Maggipinto, Ms Amy
Patanasinth, Tan Sri Abu Kassim, Mr Chew Phye Keat, Tn Roslan

Transparency International Malaysia and Malaysia Reform Initiative (MARI) supported by USAID
program organized a forum themed "Whistleblower Protection Law: The OECD Countries' Experiences
and How Malaysia Can Move Forward" at The Ritz-Carlton Kuala Lumpur.

There were two sessions, Panel Discussion 1 and Panel Discussion 2. Topic for the Panel Discussion 1
was Whistleblowers Protection Practices in OECD Countries where TI-M invited the Ambassador of
Italian Embassy, HE Christiano Maggipinto; the Ambassador of the Royal Norwegian Embassy, HE
Gunn Jorid Roset; and the Deputy Head of Mission of the Royal Danish Embassy, Mr Jesper Stig
Andersen. The objective of this session was to understand and learn about the best practices of the
whistleblowers’ protection practices especially in Denmark, which is the top country in the Corruption
Perceptions Index; Norway which has led the way in best practices and Italy whose background is
similar to Malaysia.

Mr. Andersen suggested several perspectives for Malaysia, some of which is to include making the
whistleblower act to be widely known to everyone and be user friendly and having a change in work
culture, making it easy to complain. Next, issues can be taken seriously regardless of the high level the
accused. Thirdly, whistleblower laws alone are not enough. Such laws cover just one aspect of it. There
needs to be a conducive societal structure with proper systems. Lastly, there should be implementation
and commitment to carry through with training and clear rules.

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Meanwhile for the Panel Discussion 2, the panelists pointed out changes that could be made to revamp
the current Whistleblower Act 2010 in line with the new government’s commitment. The panelists were
Tuan Roslan Bin Mat Nor from the Malaysian Anti-Corruption Commission, Mr. Chew Phye Keat from
Raja, Darryl & Loh (RDL) Advocates and Solicitors, and Puan Nurfarhana Baharudin, the Legal Advisor
in the Prime Minister’s office.

Among the recommendations made to strengthen the current WPA 2010 were:

1. To allow internal reporting within an organization’s own whistleblower framework to also qualify
for protection under the WPA.
2. To extend dedicated whistleblowing agencies or bodies to receive disclosures in addition to
Enforcement Agencies, such as Human Rights Commission of Malaysia (SUHAKAM) or
Parliamentary Ombudsman.
3. To protect the whistleblower even if the disclosure itself is prohibited by any written law. This is
to prevent any doubt as to whether the whistleblower would be punished by any other written
law due to the disclosure.

Mr Phye Keat shared his points with the audiences YB Datuk Liew Vui Keong delivered his closing remarks

(Full report available at www.transparency.org.my)

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ANNUAL MEMBERSHIP MEETING 2019
GLOBAL NETWORK TO ENHANCE COLLABORATION

The Annual Membership Meeting 2019 was held in Berlin from 15th to the 17th November. Dr.
Muhammad Mohan and Deputy Mr. Lawrence Chew attended the meeting. TI's Annual Membership
Meeting (AMM) is a governance event as well as an important yearly milestone in the global network
to learn from each other and enhance collaboration.

The event is an opportunity to hold numerous other meetings alongside the AMM with a governance
focus and bring together TI Members (Official Chapter Representatives (OCRs) for accredited
National Chapters and Individual Members) as well as other Chapter delegates (from National
Chapters, National Chapters in Formation and National Contacts), Advisory Council members and
designated TI-Secretariat staff.

Dr. Mohan supporting the resolution for stolen assets of 1MDB Dr. Mohan with the Business Integrity Programme
to be returned to the Malaysian citizens team in TI-Secretariat, Berlin

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CORPORATE INTEGRITY SYSTEM MALAYSIA
GEAR UP NACP AND CORPORATE LIABILITY PROVISION

The final Corporate Integrity System Malaysia (CISM) Meeting for 2019 was organized by the MACC
Inspection and Consultancy Division (BPMP) Corporate Initiative Branch on 27 November. This is a
good platform for all CISM Round Table Members to discuss and present their respective Strategic
Plan in accordance with the National Anti-Corruption Plan (NACP) and the Corporate Liability
provisions under Section 17A of the MACC (Amendment) Act 2018.

MEETING WITH INTEGRITI

TO DISCUSS THE STRATEGIC PLAN FOR 2020

29 NOVEMBER 2019
TI-M had a meeting with Business
Development Section of The
Malaysian Institute of Integrity
(INTEGRITI) to discuss on the
collaboration programme for 2020.
Among the proposed programme are
joint training on AdequateProcedures,
Section 17A of MACC Act and fraud
prevention. Other possible areas to
be covered included Beneficial
Ownership, Corruption Risk
Management (CRM), Anti-Bribery
Management System (ABMS),
Organisational Anti- Corruption Plan
(OACP) as well as Ethics & Integrity
Training Modules (E&I).

From left-right: Sheeda, Fishon, Mr. Yany (INTEGRITI)

& Mr. Raymon, Izzati, Adlina (TI-M)

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MEETING WITH REFORM
CAUCUS
GIAT PUSH FOR REFORMATION

2 DECEMBER 2019
The GIAT Coalition met with the Reform Caucus
chaired by Datuk Seri Anwar Ibrahim. After
presenting our concrete recommendations to
the caucus, that asset declaration should also
include business interests and making political
financing transparent, as part of MPs' code of
conduct for good governance, there was a
myriad of responses, some in support and
mostly not. GIAT will continue to have dialogues
and push for reforms.

GIAT is a coalition of CSOs that promotes Good

Governance, Integrity, Anti-corruption and
Transparency. The coalition members are
Transparency International Malaysia, C4, From left-right: Adlina (TI-M), Aira (IDEAS), DS Anwar Ibrahim,
IDEAS, PROHAM, @Sinar Project and MyPJ. Cynthia (C4), Jeffrey (MYPJ)

SETTING UP OMBUDSMAN MALAYSIA

ENSURE EFFECTIVE MANAGEMENT OF PUBLIC COMPLAINTS

TI-Malaysia was invited to attend the intergovernmental session on the setting up of the
Ombudsman Malaysia, which is poised to replace the Public Complaints Bureau (BPA) - meant to
enhance integrity and governance in addressing public complaints.

Ombudsman Malaysia is expected to be in operation in the first quarter of next year, if Parliament
passes the bill in December. It will be an independent and free body as it will not be placed under the
prime minister’s office or under any ministry.

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NATIONAL ANTI-FINANCIAL CRIME CENTRE SESSION
TO COORDINATE INVESTIGATIONS INTO FINANCIAL CRIMES

YB Datuk Liew Vui Keong (seating in middle) with the NGOs attended during the session

Transparency International Malaysia was among the few non-governmental organizations invited to
attend the briefing and discussion session of the National Anti-Financial Crime Centre (NAFCC) with
YB Datuk Liew Vui Keong, Minister in the Prime Minister's Department.

The NAFCC Bill was tabled on August 8, 2019 in the House of Representatives for its first reading,
to coordinate investigations into financial crime as well as be responsible for managing a centralized
data system for financial crimes.

The Centre was an initiative under the National Anti-Corruption Plan 2019-2023 that intended at
coordinating enforcement actions to combat financial crimes committed locally and abroad. It will
help coordinate the efforts of enforcement agencies as such the Royal Military Police, Customs
Department and Malaysia Anti-Corruption Commission. NAFCC will also be empowered to summon
any persons to submit relevant information or documents related to its functions, failure to comply
could result in a maximum of one million ringgit, a five year jail sentence or both upon conviction.

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 INTERNATIONAL ANTI-CORRUPTION (HARA) DAY 2019
UNITED AGAINST CORRUPTION

7 DECEMBER 2019
A total of 100 volunteers with 11 NGOs and 2 corporate sponsors comprising members of AMAR
and anti-corruption NGOs such as Transparency International Malaysia, Center for Combating
Corruption and Cronyism (C4), and corporate partner, Top Glove Corporation Bhd jointly celebrated
2019 International Anti-Corruption (HARA) Day under the theme ‘United Against Corruption’ at the
common market located at Precint 8, Putrajaya.

The program was officiated by YBhg Dato' Shamshun Baharin Mohd Jamil, Deputy Chief
Commissioner (MACC), accompanied by YBhg Dato' Sri Hj. Zechariah Hj. Jaffar, President of the
Malaysian Anti-Corruption Foundation (YARM) and TPj Mr. Ruslan Tuan Mat, Director of Public
Education Division, MACC.

HARA 2019 Walkabout Volunteers conducted an Anti-Corruption survey around the business areas
targeting small traders and hawkers in Putrajaya. The survey was conducted simultaneously across
the country from 9.00am to 9.00pm, involving over 1,000 volunteers. This has attracted about 12,000
respondents.

Mr. Ruslan, Dato’ Shamshun, Dr Mohan with others VIPs

Dr. Mohan signing the board as part of the official opening

HARA 2019

Group photo of TI-M with MACC and Top Glove at HARA

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BREAKFAST GRILLE PODCAST
FIGHTING CORRUPTION IS EVERYONE’S JOB

9 DECEMBER 2019
TI-M president, Dr. Muhammad Mohan
was invited to the Breakfast Grille
podcast by BFM in conjunction with
International Anti-Corruption Day 2019.
Together in the podcast was YB Nik
Nazmi Nik Ahmad who is the MP for
Setiawangsa.

Among the discussion was Malaysia’s

ranking in the corruption index, the
National Anti-Corruption Plan, the
effectiveness of institutions like
Malaysian Anti-Corruption Commission
and Parliament in fighting corruption as
well as Pakatan Harapan’s promises to
revise acts as such the Official Secrets
From left-right: Dr Mohan, Wong Shau Ning (BFM) and YB Nik Nazmi
Act.

For the full version: https://www.bfm.my/podcast/morning-run/the-breakfast-grille/bg-fighting-corruption-

is-everyones-job?fbclid=IwAR3FR4j5IdtNZ7jrjltvZfJ8PVvYAea8SG3KxzT8KupeZv7QpQestNesU2w

MEETING WITH PERDANA

LEADERSHIP FOUNDATION
TOWARDS COLLABORATION OPPORTUNITY

26 DECEMBER 2019
TI-M president, Dr. Muhammad Mohan visited YBhg Tan
Sri Nik Mohamed Nik Yaacob, Executive Director of
Perdana Leadership Foundation.

For the 2020, TI-M and Perdana Leadership Foundation

will jointly organized 1-day Awareness Training that focus
on MACC Act Section 17A which will be enforce in June
2020 as well as Anti-Bribery Management System
(ABMS).

YBhg Tan Sri Nik (left) and Dr Mohan (right) after

the meeting at Perdana Leadership Foundation’s
office in Putrajaya

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BENEFICIAL OWNERSHIP TRANSPARENCY
UNMASKING THE CORRUPT

12 DECEMBER 2019

From left-right: Tn Faizal, Mr Raymon, Mr Ly-Batallan, Pn. Norhaiza, Pn. Latheefa Koya, Dr Mohan and Ms Cynthia

TI-M organized a forum themed ‘Unmasking the Corrupt through Beneficial Ownership
Transparency’ in collaboration with Malaysia Reform Initiative (MARI) supported by United States
Agency for International Development (USAID). The forum was held at Sheraton Imperial Hotel
Kuala Lumpur aimed at analyzing Beneficial Ownership provision in Malaysia by taking the example
of the foreign approaches, discuss on the recent establishment of beneficial ownership reporting
framework by Companies Commission of Malaysia (CCM) as well as how Malaysia can move
forward.

Among the distinguished attendees were Pn. Latheefa Koya (Chief Commissioner of MACC), Mr.
Dean Thompson (Charge D’Affairs of U.S. Embassy, Mr. Emmauel Ly-Batallan (Head of Economic
Section of the French Embassy in Malaysia), Pn. Norhaiza Jemon (Director, Regulatory
Development and Services Division of CCM), Mr. Raymon Ram (Secretary-General of TI-M) and Tn.
Mohamad Faizal (Deputy Director AMLFOP Division of MACC).

Beneficial Owner (BO) refers to a person who ultimately owns, controls or benefits from a company
or trust fund and the income it generates, without being on the record as the owner, according to
Transparency International. Meanwhile, CCM has defined BO as an individual who has interest,
directly or indirectly, in at least 20% of the shares.

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Legal reforms had been made to establish the BO reporting framework with the Companies Act 2016
amended as according to Pn. Norhaiza. Besides having a clear definition, CCM will require all
companies to report their beneficial ownership information, given 6 months from the effective date of
the guidelines.

For Malaysia to move forward, Mr. Raymon believes that we need to have a well-established BO
registry in place. Among the suggestions were: - (1) risk assessments to be conducted properly so
high-risk companies are scrutinized more, as resources cannot be allocated to monitor all the
companies but making targeted options as the most efficient method; (2) open source and publicly
available information and (3) accurate timeline of BO information submitted so that all stakeholders
can have access to updated and verified information.

Tn. Faizal also stated the beneficial ownership investigations would need more joint operations
between regulators and law enforcement agencies to bring the full force of the law against offenders.
It will create greater sharing of expertise and human capital resources and more accessibility to
information.

(Full report available at www.transparency.org.my )

During the Q&A Session Dr Mohan (left), Pn Latheefa (middle) & Mr Shane,
USAID Country Representative (right)

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WELCOME ABOARD!
TI-M’S NEW INTERN

Fathimath Rayya Ibrahim, 22, (December 2019-April 2020)

Rayya is a final year student, pursuing her Bachelor's degree in
International Relations at Asia Pacific University, Malaysia. As an
International Relations student, she believes that cooperation, integrity,
and transparency is essential to the backbone of all states but
understands that corruption is one of the biggest challenges for any state
to overcome. She hopes that her choice to be an intern at TI-Malaysia,
further strengthens her resolve to strive for an environment without
corruption.

CALLING FOR TRAINERS!

We are collecting data on relevant speakers for training programs organized by TI-
Malaysia, and would like to invite all members to send in your profiles consisting of:

1. Subject matter expertise

2. Background
3. Training track record and
relevant supporting
documents

Kindly email all the relevant

documents to the Manager/Editor
Ms Adlina Adnan at
adlina@transparency.org.my

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