KUALA LUMPUR: The government has decided to go ahead and enforce the corporate liability law come June 1.
This would make it an offence for a commercial organisation if any of its employees or allies are found to be involved in corrupt practices for the benefit of the organisation.
The Prime Minister's Office said that the government has decided to go ahead with implementing the provision which comes under Section 17A of the Malaysian Anti-Corruption Commission (MACC) Act 2009 after assessing the current situation and taking into consideration various views.
"After considering the current situation and the views of all parties, the government has decided that the implementation of the corporate liability law will continue to be enforced from June 1, 2020,” it said in a statement Thursday (May 21).
The provision states that it is an offence for a commercial organisation if any of its employees or allies are involved in corrupt practices that are carried out for the benefit of the organisation.
Among others, the provision will encourage commercial organisations to take the necessary and suitable measures to ensure that the business that they carry out does not involve in any corrupt activities.
The government gazetted Section 17A of the Malaysian Anti-Corruption Commission Act on May 4, 2018.
However, there have been calls for the enforcement of the new provision to be postponed for a year in view of the Covid-19 pandemic, which has caused business interruptions to many companies.
MACC chief commissioner Datuk Seri Azam Baki said that the government was studying feedback that urged the provision be delayed as companies were not ready for the appropriate anti-corruption plan.