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Strong Governance Urged to Combat Corruption in Malaysia

Kuala Lumpur:Organisations need to enhance their governance systems and internal controls to proactively prevent corruption, instead of relying solely on the Malaysian Anti-Corruption Commission (MACC), according to Malaysian Integrity and Anti-Corruption Organisation (INTRAS) president Datuk Mohamad Fauzi Husin.

According to BERNAMA News Agency, Mohamad Fauzi emphasized that corruption is not only driven by individual greed but can also arise from systemic weaknesses, such as unchecked powers, decisions made without proper scrutiny, unresolved conflicts of interest, and a lack of transparency.

He stressed that strict enforcement, including investigations, prosecutions, and penalties, is essential to uphold the law. However, addressing only arrests and punishment without focusing on systemic weaknesses will not tackle the root causes of corruption. Anti-corruption efforts should be implemented at three levels identifying risks and closing loopholes before misconduct occurs, utilizing audits and monitoring, and taking appropriate legal action when misconduct is evident.

Mohamad Fauzi suggested that each corruption case should prompt organisations to conduct self-assessments to identify internal control weaknesses and early warning signs. Boards of directors should provide effective checks and balances, while senior management must promote a culture of integrity.

He noted risk indicators such as undeclared conflicts of interest, frequent changes in work scope, unjustified variation orders, lenient approval processes, and unresolved audit findings. These may indicate potential risks, and organisations should act on them before they escalate into criminal cases.

Mohamad Fauzi also highlighted the importance of integrity audits as a preventive tool, particularly in government agencies, statutory bodies, and government-linked companies. Integrity units should focus on early risk identification, internal audits should assess abuse of power risks, and compliance officers must question questionable decisions.

He concluded that anti-corruption efforts should be evaluated by addressing systemic weaknesses and eliminating opportunities for corruption, rather than just the number of arrests. The responsibility for combating corruption should be shared across all parties within an organisation.

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