Transparency International Malaysia (TI-M) has cautioned the government against normalising “pay and walk” outcomes in corruption cases, which it said encourages impunity and reduces graft to a “mere financial calculation”.
The warning came following a revelation that MACC has recovered RM900 million in unpaid taxes from an unnamed company, without any prosecution.
Several media outlets reported yesterday that the anti-graft authority opted for financial recovery over prosecution as a pragmatic decision to secure funds for the public purse.
Unimpressed, TI-M argued that the growing reliance on compounding and asset recovery in place of criminal charges undermines public trust in the nation’s enforcement and justice institutions.
“Without prosecution, there is no formal determination of guilt, no judicial accountability, and no meaningful deterrent.
“Normalising ‘pay-and-walk’ outcomes encourages impunity, demoralises investigators and prosecutors, and reduces corruption to a mere financial calculation,” TI-M said in a statement today.
It added that justifying non-prosecution on grounds of pragmatism or evidentiary difficulty sends a dangerous signal that the wealthy or well-connected can effectively pay their way out of criminal liability.
Why is AGC silent?
TI-M also pointed out the silence of the Attorney-General’s Chambers in several high-profile cases involving former senior public officials, citing the inaction against former prime minister Ismail Sabri Yaakob as an example.
Ismail Sabri, his former political aide Anuar Yunus, and several others have been the subject of MACC’s investigation for alleged graft in the “Keluarga Malaysia” public relations campaign.
It is understood that the probe is related to the campaign’s expenditure and procurement of funds, which was undertaken during his tenure as prime minister from August 2021 to November 2022.
According to MACC chief commissioner Azam Baki, the investigation, which began around February, was concluded on June 25 despite no individuals having been prosecuted.
The Kuala Lumpur Sessions Court, however, allowed the government’s application to forfeit RM169 million cash from Ismail Sabri and Anuar, after the duo did not contest the application.
Negative perception
According to the TI-M, prolonged inaction and the absence of clear explanations in such cases risk creating the perception of a two-tier justice system, where powerful individuals are spared prosecution while ordinary Malaysians are held fully accountable.
It reiterated that asset recovery and compounding should not become the default response to corruption, stressing that without prosecution, there is no formal determination of guilt, judicial accountability, or meaningful deterrence.
The group then urged the government to introduce clearer guidelines on the use of compounding and forfeiture, ensure transparency in decisions not to prosecute, and accelerate long-promised institutional reforms to strengthen prosecutorial independence.
“Financial settlements must not become the endpoint of corruption cases in Malaysia.
“Every serious wrongdoing resolved through payment without prosecution sets a dangerous precedent and reinforces the perception that justice can be negotiated,” the group said.
It suggested several reforms, including the disclosure of offenders in asset recovery cases and publishing strict guidelines on when an offence can be compounded and when prosecution is mandatory.
“There is no reason whatsoever for the protection of selected individuals’ identities or privacy.
“Anonymity shields wrongdoing and undermines deterrence,” it said, emphasising that issuing a compound should be the exception, not the norm.
Authorities must also disclose “clear and credible” legal reasons whenever they decide not to prosecute high-value or high-profile corruption cases, TI-M added. - Mkini
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