Is SC probing 'corporate mafia'? Chief claims he'll go to jail if he says anything

Securities Commission chairperson Faiz Azmi has refused to reveal whether or not his agency is investigating claims that there is a "corporate mafia" working together with the MACC to shake down business rivals.

Faiz claimed he'll go to jail if he says anything.

“Are you aware of Section 148 (of the Securities Commission Act)? Section 148 says you go to jail if you discuss any investigations that are still ongoing. So, do you really want me to go to jail?” he was quoted as saying by The Edge last night.

Section 148 of the SC Act prohibits the disclosure of information obtained during the course of duties and is not published as per the law.

Non-compliance is punishable with a fine of up to RM1 million, a jail term of up to five years, or both.

When contacted, Lawyers for Liberty co-founder Latheefa Koya said Faiz's reading of Section 148 was "wrong and perverse".

“The SC is a regulatory body, which means they are accountable to the public. There is no such thing as secret investigations by a public body in Malaysia.

“Section 148 does not bar SC officials from informing the public whether a probe is ongoing or not on the corporate mafia issue. Section 148 only prohibits details of the probe, such as evidence obtained, from being disclosed.

“Public officials must understand the right of the public to know and the role of the media in ensuring transparency and accountability,” she said.

Meanwhile, Section 152A of the same Act allows the commission to publish information regarding action it is taking.

The SC previously revealed when it is conducting probes through press releases.

This includes the commission's statement in January 2022 that it would speak to MACC chief Azam Baki, after the top graftbuster claimed that his brother had used his trading account to buy shares.

The SC concluded that there was no evidence of proxy trading and that Azam was in control of his accounts.

In the spotlight, again

Azam recently fell into the spotlight again over shareholdings believed not to be in compliance with limits imposed on civil servants.

However, a more major issue concerned a Bloomberg report alleging collusion between the MACC and the "corporate mafia" - which entailed corporate takeovers under duress of MACC investigations.

Azam was alleged to have been aware of and had acted in support of such activities.

The MACC has denied any wrongdoing.

The collusion allegations have led to calls for a royal commission of inquiry.

However, the government said it would only decide on an RCI after an investigation into Azam's shareholdings is completed. The cabinet is expected to receive the probe report this week.

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