Article Search By : Pn. Nurul Ezani Abdul Malek

Source : Berita Harian

By : Mohd Prasad Hanif, Setiausaha Agung Persatuan Institusi-Institusi Kewangan Pembangunan Malaysia (ADFIM)

 

Integrity and governance in all areas need to be raised higher, thus needing to be inclusive as soon as possible, no matter in the public, private sector, institutions or organizations, even reaching at the individual level. This means, it is time for the latest study to be done once again to outline a set of actions to build integrity and quality governance as Malaysia's new culture and image.

Among the steps that can be taken is to institutionalize integrity and governance with the support of organizations, policies, acts, strategic plans, audit systems and power sources to carry out monitoring and enforcement. In this context, the Prime Minister, Datuk Seri Anwar Ibrahim insisted on strengthening the country's economic engine, which is the main component of the government machinery.

The cluster must be free from governance issues and coordination leaks. Along with the Prime Minister's commitment to introduce the Public Sector Governance Act and the Integrity Plan, this action cannot be delayed any longer. When the act and plan are created as a governance and anti-corruption guide, the scope must be expanded to include public and private entities. In fact, it is necessary to include cooperatives, charities, sports, religion and individuals because it demands ethical financial management and trust administrators. Every organization must be closely monitored to ensure it is free from corruption and abuse of power.

In a study by Transparency International, a percentage of Malaysians think that officials involved in corruption are worrying. A total of 57 percent of respondents believe the police are involved in corruption, followed by tax officials (48 percent) and politically appointed councilors (48 percent). More surprisingly, 23 percent of the people interviewed admitted to giving bribes to public officials in the past year. These statistics show that the public sector is most vulnerable to corruption symptoms with 63.3 percent of complaints involving civil servants.

According to the Malaysian Anti-Corruption Commission (MACC), a total of 2,163 civil servants were arrested for corruption offenses from 2019 to 2023. Of these, 1,347 (62.2 percent) were arrested for asking for and accepting bribes, while another 463 made false claims. Now, almost every day there are arrests of civil servants for corruption.

Corruption not only tarnishes integrity, but has a wide negative impact on the country's economy and society. Misuse of resources occurs when funds that should be used for public interests such as health, education and infrastructure trickle into the pockets of certain parties. Corruption also causes inefficiency in the public sector, thus lowering productivity.

An unfair economy also occurs when certain individuals or companies, especially wealthy ones, are given an advantage, thereby undermining public trust in institutions. This results in higher prices of goods and services as the cost of corruption is transferred to consumers. Corruption also damages people's confidence in the government and any institution, in addition to affecting social stability and hindering sustainable development.

To prevent corruption at member level of the Association of Development Financial Institutions of Malaysia (ADFIM), various measures were introduced such as 'whistleblowing' reporting through the e-Whistleblowing Complaint Management System (WBCMS) at Bank Simpanan Nasional (BSN). The use of technology to automate procurement and payment processes also helps increase transparency and lower the risk of corruption. For example, online applications at financial institutions such as Perbadanan Usahawan Nasional Bhd (PUNB) and Majlis Amanah Rakyat (MARA) ensure a more transparent and fast process.

In addition, international recognition such as the ISO 37001:2016 Anti-Bribery Management System certification obtained by several ADFIM members shows the financial institution's commitment to integrity. Organizations implementing technology systems with automation and a secure audit trail will also increase customer trust. Development finance institutions (DFIs) have a major responsibility in promoting integrity.

 

Public, private cooperation to fight corruption

Cooperation between the public, private and community sectors is essential in the fight against corruption. At the international level, countries such as Denmark and Finland are often recognized as having the lowest corruption rates. This is the result of close cooperation between the transparent government, the ethical private sector and active civil society in regulating the symptoms of corruption.

In this country, the role of the public sector in enacting laws and implementing anti-corruption policies is important. However, the commitment of the private sector is also no less important, especially in awarding contracts, tenders and licensing.

The community through non-governmental organizations (NGOs) and the media play a major role in raising awareness and educating the people to reject corruption. They also act as observers and monitors of corruption in the government and the private sector.

The anti-corruption campaign by Chinese President Xi Jinping for example is the largest and most intensive effort in history. More than a million government officials, including high-ranking ones, were investigated or punished for corruption. For high-profile cases, the perpetrators were sentenced to life in prison, thus showing China's commitment to combating the phenomenon while increasing people's trust in the government.

According to the Edelman Trust Barometer, trust in institutions in China is rising compared to declining trust in most liberal democracies. This can be used as an inspiration to Malaysia in efforts to strengthen integrity and fight corruption comprehensively.

To ensure corruption-free sustainable development, Malaysia needs a comprehensive integrity system. Establishing an integrity unit in each organization as well as monitoring the performance of this unit is an important first step. In fact, every action must be supported by a formal framework and policy that serves as the basis for every decision, monitoring and even evaluation.

Also, it is important to measure and monitor the achievement of integrity in public services, companies and employees through audit controls, indices and mandatory public reports. This step will not only foster the practice of pure values but will also foster a culture of integrity among the people. When integrity and good governance are practiced consistently and systematically, it will become the norm, further instilling a culture that reflects the new image of the country.

Integrity and effective governance require political determination, the commitment of all stakeholders and the solid support of the people. The implementation of the National Anti-Corruption Plan (NACP) 2019-2023 needs to be continued more firmly.

Date of Input: 26/09/2024 | Updated: 30/09/2024 | muhammad.isam