C4 slams MACC's idea to resolve mega graft cases without full trial

An NGO has sounded the alarm over MACC’s proposal for a Deferred Prosecution Agreement (DPA) mechanism, which its chief Azam Baki said is intended to resolve high-value corruption cases without a full trial.

Calling it "a ridiculous move", the Center to Combat Corruption and Cronyism (C4 Center) lambasted the MACC for suggesting the mechanism be extended to individuals.

"This mechanism would effectively encourage leaders to commit massive amounts of corruption to qualify for a DPA: why misappropriate RM50 million and face criminal charges when one could take double that amount and settle the case out of court?

"In a worst-case scenario, they would simply be required to return the money that was already stolen.

"How is it logical to remove true accountability for the most serious offenders? What is the deterrent for grand corruption once this proposed DPA scheme is in place?" C4 Center asked in a statement.

Yesterday, Azam reportedly told a podcast that MACC has proposed a DPA mechanism to the government, aimed at resolving corruption cases involving amounts that exceed RM100 million.

According to the MACC chief, the proposal is expected to be tabled in the Dewan Rakyat this year and must be expedited to prevent lengthy court processes, which can incur more losses to the government.

"In Malaysia, we are proposing the DPA be applied not only to corporate entities, but also to individuals responsible for corruption involving values defined as extremely large," New Straits Times quoted Azam as saying.

‘What logic is this?’

Unimpressed, C4 questioned the logic behind MACC's suggestion, which they said would enable powerful individuals to pilfer public coffers and escape only by paying restitution.

The group also pointed out that the proposal represented an "extremely dangerous" misunderstanding of DPA, which it said should be limited to legal persons and not natural persons.

According to C4, in many nations, the DPA mechanism is implemented as a form of non-trial resolution for corporate entities, which is intended to mitigate potential consequences associated with a criminal conviction for blameless employees, customers, suppliers, and investors.

"The exact procedure differs across jurisdictions, but generally it involves a process of negotiation between the prosecution and the investigated party, which leads to a mutually acceptable agreement affirmed by a court.

"Common contractual terms include monetary penalties, admissions of guilt, and internal governance reforms for corporate entities.

"If Putrajaya intends to introduce a DPA scheme, the fundamental consideration is, why should an entity involved in criminal activity be afforded the opportunity for non-trial resolution?” C4 Center asked.

The group then urged the government to publicly commit to restricting DPA to corporate entities and ensure that non-conviction-based asset forfeiture is not used solely to settle cases and recoup financial losses, while avoiding efforts to bring those involved in corrupt activity to justice.

Democratic reforms risk failure without good governance - C4 Center

COMMENT | Najib's 1MDB convictions: Urgent need for structural reform

Group urges MACC to probe claims Zaliha turned down RM50m bribe

Ex-aide lodges MACC report after flagged for Zaliha's silence on graft

Azam's retirement as MACC chief must spark reforms - C4 Center