Azam proposes three laws to prevent misappropriation, corruption

MACC chief commissioner Azam Baki has proposed three new laws to address loopholes in public funding to prevent misappropriation of funds and corruption.

He said this includes large-scale corruption, or grand corruption, as well as fundraising by non-governmental organisations (NGOs).

While presenting the proposal, Azam explained that the first law covers misconduct in public office, aiming to prevent improper conduct among government employees that paves the way for more serious offences.

The second would be a Welfare Act to hinder the misuse of public funds by NGOs, he told Berita Harian.

On this matter, he also called for the establishment of a Welfare Commission to curb the misuse of public and corporate donations, explaining that the MACC had identified concerns about potential abuse by individuals with access to the funds.

The third proposed legislation relates to political funding, which Azam described as essential in the prevention of conflicts of interest, corruption, and undue influence in politics.

“Political funding is not a new issue because it was discussed before the 15th general election, but it has not been implemented by the government. However, this issue remains worrying and has received calls from many parties for the drafting of a stricter act.

“This includes the need to disclose political donations and loans to prevent conflicts of interest, corruption, and undue influence in politics,” he said.

This development comes as Azam faces public scrutiny over Bloomberg and Malaysiakini’s reports that he owned significant shares in two companies, exceeding what the civil service allowed.

Bloomberg also recently reported that MACC officers allegedly colluded with private individuals to pressure business rivals and orchestrate corporate takeovers, claiming that Azam was aware of - and even supported - such actions.

Azam later filed an RM100 million defamation suit against Bloomberg, but this was only on specific allegations regarding his shareholdings.

Following the allegations, anonymous high-level sources told the Straits Times that Azam’s contract will not be extended after it ends on May 12.

Potential corruption in crowdfunding

Commenting further, Azam revealed that the proposal follows an MACC investigation on several NGOs, including an organisation that claimed to be collecting funds for Palestine, as well as social media influencers who were soliciting donations and infaq (Islamic charity) from the public.

Azam said investigating officers had uncovered various modi operandi after opening investigation papers against parties suspected of involvement in the matter.

“Public fund collection or crowdfunding activities are increasingly widespread, thus opening up space for corruption because there is no transparent check and balance mechanism,” he commented.

Regarding grand corruption, Azam said Malaysia does not have a specific law addressing the offence, noting that the MACC Act 2009 remains the primary legislation used to prosecute corruption-related crimes.

But he said other provisions, such as Section 409 of the Penal Code, the Financial Procedure Act 1957, and the Public Finance and Fiscal Responsibility Act (FRA) 2023, can be wielded against the misuse of public funds.

He went on to praise the FRA, stressing its importance in ensuring national fiscal discipline, transparency, and financial sustainability.

He added that it also seeks to curb the creation of off-balance-sheet liabilities such as government guarantees, concession compensation, and bailouts involving government-linked companies and mega projects, while ensuring that major fiscal decisions are made within a proper long-term legal framework.

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