KUALA LUMPUR, June 25 — Smuggling activities in Malaysia were enabled by corruption in both the public and private sectors, said former Transparency International Malaysia president Datuk Seri Akhbar Satar.

He said such smuggling included contraband such as drugs, cigarettes, counterfeit products and even people were enabled by corruption funded by illegal proceeds.

“This vicious cycle has led the government to lose billions of ringgit in revenue while causing hurt to Malaysians’ health and undermine the performance of legitimate businesses,” Akhbar said via a statement in conjunction with this year’s International Day Against Drug Abuse and Illicit Trafficking.

He said the smuggling of contraband cigarettes alone has resulted in an estimated RM5 billion loss to the government yearly due to uncollected taxes.

Advertisement

“Clearly the sheer volume of funds generated from the entire illicit trafficking spectrum can be easily used to entice key public and private individuals to look the other way.

“To resolve this, the provisions to Section 17A of the Malaysian Anti-Corruption Commission Act 2009, which was forced on June 1, is a step in the right direction,” he said.

Under the Act, Akhbar said commercial organisations were now liable if their employees or associates are involved in crimes of corruption, as it seeks to encourage businesses to operate with integrity, free from corruption and promote good corporate governance practices by taking adequate measures to prevent corruption in their organisations.

Advertisement

“In other words, not only would a commercial organisation be liable for corruption committed by a person associated with it including its employee or middleman, but the onus is now shifted to the commercial organization including its senior personnel holding office at the time of the commission of the offence will be deemed to have personally committed the offence as well.

“However, the new provisions to Section 17A do not mean that the private sector shoulders the full responsibility of corrupt practices. Corruption is an endemic problem that must be stamped out through a collective effort by all segments of our society including policymakers, enforcement agencies, public agencies, private businesses and the general public,” he said, adding that only by doing so can problems like illicit trafficking be addressed effectively.

Akhbar also advocated for other solutions to counter corrupt practices in relation to illicit trafficking, including the utilisation of advanced technologies helmed by trustworthy enforcement officials to monitor trafficking routes.

“Personnel rotation systems should also be put in place, public support for the furnishing of good information, taking action against companies involving in syndicated illegal cigarettes that can potentially break the corruption chain, and creating policies that further empowers our graft busters in fulfilling their duties,” he said.