This article first appeared in The Edge Financial Daily on January 11, 2019

KUALA LUMPUR: The government will propose an amendment to the Malaysian Anti-Corruption Commission (MACC) Act 2009 to include a new provision dealing with proxies and the real beneficiary owners in companies, said Prime Minister Tun Dr Mahathir Mohamad.

“The amendment will enable the MACC to identify and reveal the real beneficiary owners of companies in their investigations. We find that there are many people using other people’s names in many companies.

“So we are [seeking] to improve the existing law so that we are able to determine who exactly is the real beneficiary owner,” Dr Mahathir told reporters after chairing a meeting of the Special Cabinet Committee on Anti-Corruption yesterday.

The committee was set up by the Pakatan Rakyat government upon assuming power after the general election last May to improve governance in the country.

Dr Mahathir said the amendment to the MACC Act will enable the law enforcement officers to nab those who misuse their positions and hide behind proxies while not revealing themselves as the real beneficiary owners.

Last year, the government amended the MACC Act to make companies liable for corruption as compared to only individuals previously.

Under the amendment, an offence committed by a company may be deemed to have been committed by its shareholders, board of directors, or its management.

Furthermore, the amendment broadens liability to include any person who may be a partner or employee of a firm, or who provides services to it.

On yesterday’s meeting, Dr Mahathir said the committee members had presented seven papers which included improving the governance of government-linked companies, and enhancing the government’s procurement system.

The premier disclosed that the government will launch the National Anti-Corruption Plan 2019-2023 on Jan 29, which will be used as a guide to bust all graft and corrupt activities in the country.

“We also discussed the educational aspects in fighting corruption, in which we aim to create a generation that is full of integrity and honour, in line with the aspects of human governance and character building,” he added.

The government, said Dr Mahathir, wished to foster a culture of good values in Malaysians and this has to start from a young age.

“So, the education ministry has to emphasise this by fostering noble values in nurturing students to combat corruption,” he said. “Schools must incorporate education on culture and living values. We will have certain slogans on the prevention of corruption and show that corruption is a crime that can destroy the country.”