FMM urges PN not to backtrack on anti-graft measure for companies

The Federation of Malaysian Manufacturers (FMM) has joined in the call for the Malaysian Anti-Corruption Commission's new legislation on corporate governance to be implemented on June 1 as scheduled.

In a statement today, FMM president Soh Thian Lai (photo) urged against any delay or back-tracking.

“There have been calls for the implementation date to be pushed back by a year to June 1 2021, in view of the Covid-19 pandemic which has affected businesses.

“It is acknowledged that the Covid-19 pandemic might have delayed some of the initiatives that were being undertaken by companies to put in place a robust compliance programme to ensure compliance with the law.

“However, it is even more crucial at this point when companies are facing challenging business conditions not to compromise on corruption and to ensure that corrupt practices are kept at bay and effectively addressed both at the organisation and throughout the entire supply chain,” he said.

Passed in April 2018, section 17A of the MACC (Amendment) Act 2018 imposes strict corporate liability on commercial firms that fail to prevent corruption.

If convicted, organisations could face up to 20 years in prison; a maximum fine of not less than 10 times the sum or value of gratification or RM1 million; or both.

Elaborating, Loh urged the government to assist small and medium enterprises (SMEs) adapt to the new law.

“SMEs especially still lack the know-how about implementing such measures and there is need to be greater capacity-building efforts put in place to assist them,” he said.

Should there need to be any deferment of the corporate liability legislation, Loh proposed a minimal period of between three to six months “with a definite date stated and gazetted immediately to ensure companies take the new deadline seriously”.

FMM claims to represent 10,000 manufacturing companies.

Yesterday, Transparency International-Malaysia and the Malaysian Institute of Corporate Governance also urged Perikatan Nasional to enforce the act come June 1.  - Mkini