Law to hold CEOs liable for graft by staff in the works in Malaysia

PUTRAJAYA - A proposed legal amendment to hold chief executive officers and companies liable for corruption activities involving their employees is being pushed for an early tabling in Parliament this year.

This means that corporate entities would be obliged to put in place an effective anti-graft policy or system within their companies once the proposal becomes law, said Minister in the Prime Minister's Department Datuk Paul Low Seng Kuan.

The amendment will be introduced under a corporate liability provision in the Malaysian Anti-Corruption Commission (MACC) Act, which Low hoped will be tabled in the Dewan Rakyat as soon as possible, "preferably in March or June".

"(The date for the amendment to be tabled) will depend on an agreement with the A-G (Attorney-General) and the Cabinet.

"The gist of this amendment is that in order to not be held liable, the corporate (entity) must give proof that they have put in place adequate training and an education system prohibiting bribery.

"How they (companies) are going to comply with all these systems is at the discretion of the Minister to set up what is the level of compliance or standard," Low said when met by reporters at an MACC meeting to brief the private sector on the proposed amendments, here, yesterday.