The Star - March 18, 2008

Best way to fight graft

WORLDWIDE, new governments pronounce passionately that combating corruption is their priority agenda during their tenure.

Malaysia is no different. The fight against corruption has been an evolving story since 1957.
The first Prime Minister Tunku Abdul Rahman Putra was instrumental in the enactment of the Prevention of Corruption Act 1961 and the establishment of the Anti-Corruption Agency.

In 1998, the then Prime Minister Tun Dr Mahathir Mohamad directed the formation of Integrity Management Committees in government agencies to investigate abuse of power and mismanagement.

Prime Minister Abdullah Ahmad Badawi instituted various measures to eradicate corruption - such as the Royal Police Commission to Enhance the Operation and Management of the Police Force in 2003.

The National Integrity Plan was launched in 2006 and the Institute Integrity of Malaysia was established.

The Anti–Corruption Academy, a regional centre for anti-corruption training became operational in 2005.

Despite these efforts, corruption continues to be described as being pandemic in the country.

Party manifestoes for the last general elections therefore gave top priority to fighting corruption.

Newly appointed Mentri Besar of Selangor Tan Sri Khalid Ibrahim and Penang Chief Minister Lim Guan Eng have pronounced to continue the battle against corruption.

It is unclear how they will do this. Khalid has stated he would look into a Freedom of Information Act (FOI) for greater transparency in the award of projects.The FOI gives citizens the right of access to bureaucratic documents. This may be helpful but enactment of laws and their implementation are not instantaneous.

Anti-corruption advocates point out that “prosecution is a blunt tool against corruption.”

Prevention is better than cure in the battle against corruption as experiences from developed economies such as Britain, Germany, South Korea and developing economies such as Colombia and Indonesia indicate.

One anti-corruption tool being used extensively in these countries is the Integrity Pact developed by Transparency International.

It is intended to prevent corruption during the award of contracts for major investment projects.

The IP contains rights and obligations that no party will pay, offer, demand or accept bribes of any kind or collude with competitors to obtain the contract or while carrying it out.

Bidders will also disclose commissions paid in relation to the contract.

The IP is binding on both contract suppliers and contract bidders.

Sanctions and punitive actions as well as future exclusions from contract bidding are some of the actions that can be taken against those who violate the IP.

Additionally, adherence to IP is monitored by non-governmental organizations.

The IP can be tailored to the needs of federal, state governments and local authorities.

In Britain, IPs are being increasingly used in defence agreements and the construction industry.

The Aerospace and Defence Industries Association of Europe has adopted the use of IP in defence contracts.

In Germany the IP was successfully used in the expansion of the Berlin-Schonefeld airport.

South Korea has significantly reduced corruption through the Korean Pact on Anti-Corruption and Transparency (K-PACT) which involves the public and private sectors, politicians and civil society.

It has improved transparency and built investor confidence.

The implementation of IP is cost-effective and takes about four months for all the processes to be put in place from training of public officials, industry, civil society, procedural changes, preparation of documents.

Both Barisan Nasional and opposition-led states could make IP implementation as their priority in the battle against corruption.

For a start, opposition MPs should set the example by signing an IP that they will not abuse their power or accept bribes.

JOSIE FERNANDEZ,
Integrity Institute of Malaysia.


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