Press Statement, 22nd February, Kuala Lumpur – Transparency International Malaysia (Ti-M) strongly urge 1Malaysia Development Bhd (1MDB) to be more transparent in its corporate reporting, as this is one of important criteria for companies to demonstrate their commitment to the United Nations Convention Against Corruption (UNCAC), a legally binding international anti-corruption instrument which Malaysia is a party. UNCAC is touted to be the most promising initiative and the first global framework to harmonise anti-corruption efforts worldwide.
Last year PETRONAS scored full marks for its organizational transparency in Transparency International’s (TI) report on Transparency in Corporate Reporting: Assessing Emerging Market Multinationals. Information related to PETRONAS’ ownership structure is easily available in the public domain, allowing citizens, civil society, regulators, lawmakers and investors to know where PETRONAS is operating, thus making it more accountable. Ti-M views this result as a positive step in building and reinforcing a culture of business integrity within PETRONAS’ corporate structure.
Corporate activities must be reported in a timely, demonstrate greater transparency, accountability, maintain high standards of accuracy and completeness in its records. Failure to do so may contribute to a negative impact on the perception of corruption in our country. In contrast, 1MDB was reported to have failed to file its audited accounts for the financial year ending March 2013 with the regulators. Coupled with an apparent change of its financial auditors, this raises questions over 1MDB’s commitment to transparency in its corporate reporting.
In the interest of good governance, Ti-M strongly reiterates the need for 1MDB and by extension the government to be more transparent in its corporate reporting includes mandatory reporting any transfer of funds, especially where it involves large amount.
Allegations of financial irregularities must be addressed promptly and decisively to allay fears from the public and investors of possible abuse of public funds. Corporations must adhere to strong corporate governance reporting and rules to protect the interests of both their majority and minority shareholders – government linked companies are no exception.
Issued by :
Dato’ Akhbar Satar, President Email: email@example.com
Transparency International Malaysia Mobile: 017-256 0811
Dr KM Loi, Secretary-General Email: firstname.lastname@example.org
Transparency International Malaysia Mobile: 012-303 6757