PETALING JAYA: A task force on corporate mafia is a great effort, but no one should be granted immunity from investigation solely because of their position, political influence or economic power, say corporate stakeholders.
Institute of Corporate Directors Malaysia fellow Mazli Noor said the existing legal framework is actually sufficient to prosecute those who operate like a mafia when running legitimate businesses.
He was responding to the proposal by Prime Minister Datuk Seri Anwar Ibrahim on Oct 20 to form a task force to strengthen coordination in tackling corporate mafia, with its report to be completed within three months and made public.
“Corporate mafia” is an informal term for powerful businesspeople, executives or companies that use intimidation, manipulation, corruption or unfair tactics to protect their interests and control others.
“It’s a good effort, especially to address mounting public concerns. In actuality, all available legal frameworks are already sufficient to prevent and prosecute those involved.
“If the system is allowed to operate freely and independently, enforcement will take place naturally and not only when there’s public pressure. What is needed now is transparency and seriousness to act without favour or fear, even if some high-profile names are involved.
“To ensure this is upheld, informants must be encouraged to come forward and subsequently granted relevant protections.
“The success of this task force is crucial to ensure public confidence in our system and law enforcement remains intact. Hence, parliamentary and public release is important as soon as the report is available,” said Mazli.
Malaysia Corruption Watch president Jais Abdul Karim said the viability of a proposed task force to tackle corporate crime did not necessarily guarantee its effectiveness.
He said corporate crime often involves complex financial transactions, intricate ownership structures, capital market manipulation, money laundering and the abuse of power.
As such, close cooperation among the Malaysian Anti-Corruption Commission, police, Bank Negara Malaysia, the Securities Commission and the Inland Revenue Board is crucial to ensure thorough investigations, he said.
“We believe that five key conditions must be met to ensure that the task force achieves its objectives. First, the task force must have clear terms of reference, including its jurisdiction, investigation targets, information-sharing mechanisms and implementation timeline.
“Second, the independence and integrity of investigations must be guaranteed. If allegations involve senior officials from any law enforcement agency, an independent investigative mechanism must be established to prevent conflicts of interest,” said Jais.
“Third, all parties who possess relevant information or evidence, including businesspeople, company directors and whistleblowers, must be allowed to come forward and assist investigations, with appropriate protections in place.”
He also said that the three-month period for the task force to present a report to Parliament should be regarded as a target for preparing a comprehensive preliminary report.
