Corporate liability law to be enforced on June 1

The government will be enforcing Section 17A of the Malaysian Anti-Corruption Commission (MACC) Act 2009 beginning June 1, 2020, which imposes liability on a commercial organisation for corruption committed by persons associated with the commercial organisation.

In a statement today, the Prime Minister’s Department said the move is made after taking into account the current situation and the views of all parties.

Section 17A stipulates that action can be taken against companies if a person associated with that commercial organisation corruptly gives, agrees to give, promises or offers to any person any gratification whether for the benefit of that person or another person with the intent to obtain or retain business or advantage in relation to his principal’s affairs or business.

“This can encourage commercial organisations to take the necessary steps to ensure that their businesses are not involved in corrupt activities.

“The government is committed to fighting corruption, improving integrity and implementing good governance,” the department said, adding that this will remain a priority in the government, private and public sectors.

According to the statement, Section 17A of the Malaysian Anti-Corruption Commission (MACC) Act 2009 was passed in Parliament on April 4, 2018. - Bernama