Embed Size (px)
Citation preview
INTEGRITI SEKTOR AWAM: INTEGRITI SEKTOR AWAM: ANCAMAN ANCAMAN RASUAH & CARA MENANGANINYARASUAH & CARA MENANGANINYA
Dato’ Akhbar SatarDato’ Akhbar Satar
TI definition of corruption
‘Corruption is the abuse of entrusted power for private gain’
Definition of Bribery
“ Giving or accepting gratification”
( Section 16 & 17 MACC Act 2009)
OFFENCES MACC ACT
BRIBERYBRIBERY Giving or accepting Gratification( Sec 16 & 17)
FALSE CLAIMSFALSE CLAIMS False Claims To deceive Principals ( Sec18)
WITHDRAW OF WITHDRAW OF TENDERTENDER
Corruptly Procuring Withdraw of Tender ( Sec 20)
CONFLICT OF CONFLICT OF INTEREST/ABUSE OF INTEREST/ABUSE OF
AUTHORITYAUTHORITY
Using Office or Position For Gratification (Sec23)
BRIBING FOREIGN BRIBING FOREIGN OFFICIALSOFFICIALS
Bribery of Foreign Public Officials ( Sec 22)
NOT REPORTING NOT REPORTING BRIBERYBRIBERY
Failure To Report Bribery ( Sec 25)
OTHER ORESCRIBE OTHER ORESCRIBE OFFENCESOFFENCES
Corruption Offences Under Penal Code; Custom Act 1967 & Election Offences Act 1954
PENALTY
IMPRISONMENT FOR A TERMNOT EXCEEDING 20 YEARS AND FINE NOT LESS THAN 5 TIMES THE SUM OR VALUE OF THE GRATIFICATION OR RM10,000.00, WHICHEVER IS HIGHER
FINE NOT EXCEEDING RM100k OR IMPRISONMENT NOT EXCEEDING 10 YEARS OR BOTH
• Imprisonment for a term not exceeding 20 years and
• Fine not less than 5 times the sum or value of the gratification or RM10,000.00, whichever is higher fine not exceeding RM100,000.00 or imprisonment not exceeding 10 years or both
Penalty of Corruption
When evaluating one’s goals and objectives, vital question must be asked:
What is your highest aspiration?
A: Wealth B: Fame C: Knowledge D: Popularity F: Integrity
If integrity is second to any of the alternatives, then it is subject to sacrifice in situations where a choice must be made.
Such situations will inevitably occur in every person’s life.
CAUSES OF CORRUPTION:A CRIMINOLOGICAL
PERSPECTIVE Hedonistic Social Bond Social Process Individual vs Systemic Routine Activity Theory Fraud Triangle
Goes Home late : (first one in, last one out)
RED FLAGS
Employee lifestyle changes: Big Spender- expensive cars, jewelry, buy or renovate homes, clothes ( 43% ACFE 2012)
RED FLAGS
Financial Problem: these may be an indication of drugs, alcohol, gambling, or just fear of losing the job (36% ACFE 2012)
RED FLAGS
Too close to the Clients or Vendors
RED FLAGS
Volunteers for Extra Responsibilities – anager Doing Subordinate Level Work
RED FLAGS
Too Relied on Employee
RED FLAGS
Volunteers for Extra Responsibilities – anager Doing Subordinate Level Work
RED FLAGS
Has Technical Skill to Pull Off the Scheme Secretly
RED FLAGS
No Vacation & Rejected Promotion
Watch Out for The Most Decent staff
Facts & Figures
In a survey reported by Forbes.com, 38% of teens polled feeling that they needed to cheat in order to get ahead.
Barry Salzberg, CEO of Deloitte stated “we in business can no longer assume that employees come to us equipped with a fully functioning moral code.”
Global Integrity Crisis
Barry Salzberg
Asia Pacific: Integrity Crisis
The survey showed that 40 % of the youths in Asia Pacific were willing to accept bribes if they had the opportunity.
Mr. Srirak Regional Director- Asia Pacific Transparency International – Berlin November 2013
Integrity Crisis in Malaysia
The survey conducted by (UKM) showed that 30.5% of the students were willing to accept bribes if they had the power and the opportunity.
UKM- MACC
Likely to take shortcuts to meet targets when economy times tough
Malaysia: 54%
Asia-Pacific Fraud Survey Report Series 2013
Indonesia
50%
Malaysia: Lost Business Due to Competitor
paid Bribe
Bribe Payers Survey 2012
3000 executives 13 sectors 30 countries
By SectorBy Sector
35 % : Telecommunications37 % : Utilities38 % : Public works contracts and Construction
World Economic Forum Economic loss due to corruption
Add 10% of total cost in doing business
Up to 25% to the cost of procurement contracts in developing countries
The World Bank Economic loss due to corruption
Worldwide 2.9 trillion
Reduce the country’s growth rate by 2 - 4%
The Association of Certified Fraud Examiners ( Report to Nation 2012)
An organization loses 5% of its revenues to fraud each year
2011 Gross World Product, this translates to
global fraud loss of more than $3.5 trillion.
Royal Malaysian Police
RM1.1 billion has been lost through commercial crimes reported so far in 2013, with cheating cases and criminal breach of trust (CBT) making up the bulk of losses .
Dato Syed Ismail Syed Director, Federal Commercial Crime Investigation Department
This is 1 billion
This is 1 trillion
Worldwide Corruption is 3.5 Trillion ?
This is also 1 trillion
The value of RM 1 billion
35
With RM 1 billion you can build:
667 kilometer rural roads
The value of RM 1 billion
36
6,667 kilometer kampung roads
The value of RM 1 billion
37
500 bridges
The value of RM 1 billion
38
With RM 1 billion you can build:
90 primary schools
Measuring corruption
THE CORRUPTION PERCEPTIONS INDEX (CPI)
THE CORRUPTION PERCEPTIONS INDEX 2013 IS:
A global (177 countries/territories) aggregate Index (up to 13 different data sources)
capturing perceptions (experts/business people) of corruption (abuse of power for private gain)
in the public sector (public officials and institutions)
CORRUPTION PERCEPTIONS INDEX
The perceived levels of public sector corruption in 177 countries / territories around the world.
GLOBAL
70% of countries score less than 50 out
of 100.
43 is the average score worldwide.
CPI 2013: THE TOP
RANK COUNTRY/TERRITORY SCORE
1 DENMARK 91
1 NEW ZEALAND 91
3 FINLAND 89
3 SWEDEN 89
5 NORWAY 86
5 SINGAPORE 86
Denmark and New Zealand tie for first place with scores of 91, helped by strong access to information systems and rules governing the behaviour
of those in public positions.
CPI 2013: THE BOTTOM
RANK COUNTRY/TERRITORY SCORE
173 SOUTH SUDAN 14
174 SUDAN 11
175 AFGHANISTAN 8
175 KOREA (NORTH) 8
175 SOMALIA 8
Afghanistan, North Korea and Somalia once again cling to the bottom rung of the index. In these countries the lack of leaders who are
accountable and effective public institutions underscore the need to take a much stronger stance against corruption.
COUNTRIES WITH SIMILAR SCORES
Country Ranking
Country Country Score
47 Hungary, Seychelles 54
49 Costa Rica, Latvia, Rwanda,
53
52 Mauritius 52
53 Malaysia, Turkey 50
55 Georgia, Lesotho 49
114 Egypt 32
175 Afghanistan 8
CPI 2001 - 2013 : MALAYSIA
Year 01 02 03 04 05 06 07 08 09 10 11
Ranking 36 33 37 39 39 44 43 47 56 56 60
Score 5.0 4.9 5.2 5.0 5.1 5.0 5.1 5.1 4.5 4.4 4.3
No: of Countries 91 102 133 145 158 163 179 180 180 178 183
Year 2012 2013Ranking 54 53Score 49 50No: of Countries 176 177
SCORES OF ASEAN COUNTRIES
Rank ASEAN Position (177)
CPI Score GDP per
capita
1 Singapore 5 86 $51,709
2 Brunei 38 60 $41,127
3 Malaysia 53 50 $10,381
4 Philippines 94 36 $2,587
5 Thailand 102 35 $5,480
6 Indonesia 114 32 $3,557
7 Vietnam 116 31 $1,596
8 Laos 140 26 $1,399
9 Myanmar 157 21 -
10 Cambodia 160 20 $946
CORRUPTION PERCEPTIONS INDEX
RANK COUNTRY/
TERRITORY SCORE1 Denmark 911 New Zealand 913 Finland 893 Sweden 895 Norway 865 Singapore 867 Switzerland 858 Netherlands 839 Australia 819 Canada 8111 Luxembourg 8012 Germany 7812 Iceland 78
14 United Kingdom 76
15 Barbados 7515 Belgium 7515 Hong Kong 7518 Japan 7419 Uruguay 73
19 United States of America 73
21 Ireland 7222 The Bahamas 7122 Chile 7122 France 7122 Saint Lucia 71
26 Austria 69
26 United Arab Emirates 69
28 Estonia 6828 Qatar 6830 Botswana 6431 Bhutan 6331 Cyprus 6333 Portugal 6233 Puerto Rico 62
33
Saint Vincent and the Grenadines 62
36 Israel 6136 Taiwan 6138 Brunei 6038 Poland 6040 Spain 5941 Cape Verde 5841 Dominica 5843 Lithuania 5743 Slovenia 5745 Malta 5646 South Korea 5547 Hungary 5447 Seychelles 5449 Costa Rica 5349 Latvia 53
RANK COUNTRY/
TERRITORY SCORE49 Rwanda 5352 Mauritius 5253 Malaysia 5053 Turkey 5055 Georgia 4955 Lesotho 4957 Bahrain 4857 Croatia 4857 Czech Republic 4857 Namibia 4861 Oman 4761 Slovakia 4763 Cuba 4663 Ghana 4663 Saudi Arabia 4666 Jordan 45
67 Macedonia FYR 44
67 Montenegro 4469 Italy 4369 Kuwait 4369 Romania 43
72 Bosnia and Herzegovina 42
72 Brazil 42
72 Sao Tome and Principe 42
72 Serbia 4272 South Africa 4277 Bulgaria 4177 Senegal 4177 Tunisia 4180 China 4080 Greece 4082 Swaziland 3983 Burkina Faso 3883 El Salvador 3883 Jamaica 3883 Liberia 3883 Mongolia 3883 Peru 38
83 Trinidad and Tobago 38
83 Zambia 3891 Malawi 3791 Morocco 3791 Sri Lanka 3794 Algeria 3694 Armenia 3694 Benin 3694 Colombia 3694 Djibouti 3694 India 3694 Philippines 3694 Suriname 36
CORRUPTION PERCEPTIONS INDEX
RANK COUNTRY/
TERRITORY SCORE102 Ecuador 35102 Moldova 35102 Panama 35102 Thailand 35106 Argentina 34106 Bolivia 34106 Gabon 34106 Mexico 34106 Niger 34111 Ethiopia 33111 Kosovo 33
111
United Republic of Tanzania 33
114 Egypt 32114 Indonesia 32116 Albania 31116 Nepal 31116 Vietnam 31119 Mauritania 30119 Mozambique 30119 Sierra Leone 30119 East Timor 30123 Belarus 29
123 Dominican Republic 29
123 Guatemala 29
123 Togo 29127 Azerbaijan 28127 Comoros 28127 Gambia 28127 Lebanon 28127 Madagascar 28127 Mali 28127 Nicaragua 28127 Pakistan 28127 Russia 28136 Bangladesh 27136 Ivory Coast 27136 Guyana 27136 Kenya 27140 Honduras 26140 Kazakhstan 26140 Laos 26140 Uganda 26144 Cameroon 25
144 Central African Republic 25
144 Iran 25144 Nigeria 25
144 Papua New Guinea 25
144 Ukraine 25
RANK COUNTRY/
TERRITORY SCORE150 Guinea 24150 Kyrgyzstan 24150 Paraguay 24153 Angola 23
154 Republic of Congo 22
154
Democratic Republic of the Congo 22
154 Tajikistan 22157 Burundi 21157 Myanmar 21157 Zimbabwe 21160 Cambodia 20160 Eritrea 20160 Venezuela 20163 Chad 19
163 Equatorial Guinea 19
163 Guinea Bissau 19163 Haiti 19167 Yemen 18168 Syria 17168 Turkmenistan 17
168 Uzbekistan 17171 Iraq 16172 Libya 15173 South Sudan 14174 Sudan 11175 Afghanistan 8175 North Korea 8175 Somalia 8
CPI 2013 vs GDP Per Capita 2012
$10,381
$99,558
$56,210
$620
Malaysian Corruption Barometer 2014
Survey of general public:
General perceptions of Corruption Perceptions of Corruption in Public Sector and of Government
Officials Perception of Government Effectiveness in Fighting Corruption Perceived Corruption of Key Institutions Personal Experiences of Bribery Willingness to Report an Incident &
Channels of Reporting Citizens’ Willingness To Fight Corruption
TRANSPARENCY INTERNATIONAL MALAYSIA
51MCB 2014
PERCEPTION OF CORRUPTION TREND IN THE PAST 2 YEARS
28 % of Malaysians feel that level of corruption has increased (2013: 39%)
Relative to GCB 2013, the perception had
IMPROVED significantly.
PERCEPTION OF CORRUPTION IN PUBLIC SECTOR
24% of Malaysians feel that corruption of public sector is not a problem. (2013:42%)
Relative to GCB 2013, the perception of level of corruption for Public Sector IMPROVED.
Incidence Of Bribery Been Asked For In The Past
45% of respondents have been asked to pay a bribe at one
point in time in the past
Have you ever been asked to pay a bribe in the past, from any institution?
PERCEIVED CORRUPTION OF KEY INSTITUTIONS
Top 2 Box %‘Extremely corrupt’
& ‘Corrupt’
Top 2 Box %‘Extremely corrupt’
& ‘Corrupt’
Lower perception of corruption in MCB 2014
Q6. To what extent do you see the following institutions/organizations in Malaysia to be affected by corruption?
Please answer on a scale from 1 to 5 where 1 means not at all corrupt and 5 means extremely corrupt.
51% of respondents are willing to report an incident of corruption.(2013: 79%)
Relative to GCB 2013, the respondents are
willing to report an incident of corruption has
DECREASE.
WILLINGNESS TO REPORT AN INCIDENT
WHY NOT WILLING TO REPORT AN INCIDENT ?
PERCEPTION OF GOVERNMENT EFFECTIVENESS IN FIGHTING CORRUPTION
28% of Malaysians feel that Malaysia’s efforts in curbing corruption are
ineffective. ( 2013: 31%)
Malaysian Government’s Effectiveness in Fighting Corruption: 2006 to 2014
Source: Transparency International Global Corruption Barometer 2006 to 2013. Percentages are weighted.
Government’s KPI
45%
53%
28%
48% 49%
31%
70%
TRANSPARENCY INTERNATIONAL MALAYSIA
59GCB 2014
28%
Ethical Work Ethical Work BehaviorsBehaviors
Ethical Work Ethical Work BehaviorsBehaviors
RecruitmentRecruitmentRecruitmentRecruitment
Training: basic & Training: basic & in service coursesin service courses
Training: basic & Training: basic & in service coursesin service courses
Ethics Policies and Ethics Policies and ProceduresProcedures
Ethics Policies and Ethics Policies and ProceduresProcedures
Tone at the topTone at the topTone at the topTone at the top
Areas of Negligence in An Organization
Missing or Altered Missing or Altered DocumentDocument
Missing or Altered Missing or Altered DocumentDocument
Absense of Absense of Internal controlInternal control
Absense of Absense of Internal controlInternal control
Unusual Unusual transactions transactions
Unusual Unusual transactions transactions
Inadequate Inadequate separation of dutiesseparation of duties
Inadequate Inadequate separation of dutiesseparation of duties
Misleading or Misleading or False informationFalse information
Misleading or Misleading or False informationFalse information Requires Proper Requires Proper
AuthorizationAuthorization
Requires Proper Requires Proper AuthorizationAuthorization
Ethics Policies & Procedures
Tone at Tone at the topthe top
The wheelchair-bound Chia, upon his acquittal, told the press then
that vindication had come too late.
He said he had lost his family and was estranged from his son and daughter because of the shame.
He said that at the height of his career, he had many friends but
because of the case he had lost many of them as well.
“Once when I put my hands on the table, there were 200 other hands of my friends on that same table. But now there are not enough hands,” he said in June last year.
“They have run away.
Some of them think I am a “crook.”
ERIC CHIA – CORRUPTION CASE
Finally: Your Personal Manifesto
• Never do anything you cannot defendNever do anything you cannot defend
• Never compromise your integrity
• Never sign anything you don’t understandNever sign anything you don’t understand
• If you don’t understandIf you don’t understand– Get it in writingGet it in writing– Take it home and ask your kids
Lose your wealth and you have lost nothing
Lose your health and you have lost something
Lose your integrity and you have lost everything
