Putrajaya to implement MACC law that compels commercial corporate liability beginning June

General view of the MACC headquarters in Putrajaya June 21, 2019. — Picture by Choo Choy May
General view of the MACC headquarters in Putrajaya June 21, 2019. — Picture by Choo Choy May

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KUALA LUMPUR, May 21 — Authorities have been given the green light to enforce Act 17(a) of the Malaysian Anti Corruption Commission (MACC) Act 2009 which allows corruption charges against commercial companies. 

A statement issued by the Prime Minister’s Office (PMO) confirmed the decision to begin enforcement of the law starting June 1, more than two years after it was passed in Parliament back in April 5, 2018 under the Pakatan Harapan government. 

“After taking into account the current situation and the views of all parties, the government fixed for the implementation of this Corporate Liability law on June 1, 2020. 

“Among others, this arrangement can encourage commercial organisations to take necessary steps to ensure the businesses they are operating are not involved in corrupt activities for purposes of their own gain,” read the statement from PMO today. 

Act 17(a) stipulates that action can be taken against companies if anyone under the corporation accepts or attempts to obtain any gratification or inducement or any corrupt act which can show or forebear favour or disfavour to any other party which can be regarded as being related to his principal affairs or business.

It was previously reported that MACC was in the process of possibly looking to delay Act 17(a)’s implementation following appeals from companies reeling from the economic effects brought upon by the Covid-19 pandemic. 

However, there were advocates for the Act to be implemented as scheduled in June, such as Transparency International Malaysia and the Business Integrity Alliance, citing the pressing need to stamp out corruption involving commercial business organisations here.


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