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For tracking unexplained wealth, C4 recommends tightening of MACC Act

Ampang PKR Youth chief Adam Rosly has been arrested and remanded to assist the Malaysian Anti-Corruption Commission’s (MACC) investigation into his unusual wealth.

His arrest and detention purely on unexplained wealth has courted controversy, with questions posed on whether MACC was acting beyond its mandate. And going further, if they went after Adam, then they should chase after scores of other politicians and those in public office are equally deserving of a probe.

The Centre to Combat Corruption and Cronyism (C4 Centre) reaffirms that the inability to explain unusual wealth that is not commensurate with an individual’s known and declared sources of income, constitutes sufficient ground to trigger an investigation into a commission of an offence.

While Section 36 of the MACC Act empowers the MACC to obtain information in relation to any property held or acquired by an individual, the power is however limited in its reach as it has to be in connection with an offence provided for under the MACC Act.

Section 36 does not make possessing unusual or unexplained wealth an offence. Section 36 of the MACC Act only allows the MACC to investigate possession of any property if it is connected to an offence provided for under the MACC Act. This severely restricts the MACC’s power to comprehensively investigate matters related to corruption. Adam is being investigated under the Anti-Money-Laundering and Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Cast in this light, C4 Centre together with the Bar Council and other civil society groups had previously urged for a revision to strengthen section 36 of the MACC Act. The amendments deal with unusual or unexplained wealth as a trigger for an investigation and not make such investigation dependant on a commission of an offence under the MACC Act.

It is noteworthy that the Prevention of Bribery Ordinance of Hong Kong makes it clear that possession of unexplained wealth is itself an offence.

The proposed amendment to section 36 of the MACC Act will further fortify the MACC’s powers to investigate corrupt practices, in particular possession of unusual or unexplained wealth.

This move is fundamental to strengthening the MACC’s important role to address and deal with corruption especially those in public office and in high echelons of power.

In line with this amendments, C4 Center also advocates strongly for the enactment of comprehensive asset declaration laws that presents a key tool in allowing the tracking of the wealth status of public officials and in preventing conflict of interest and illicit enrichment.

It’s time to make that change.


CYNTHIA GABRIEL is founding director, Centre to Combat Corruption & Cronyism (C4).

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