ABC SB_ABAC AWARENESS.pptx

ANTI-BRIBERY AND ANTI-CORRUPTION
AWARENESS TRAINING

AGENDA
1. INTRODUCTION TO ETHICS AND INTEGRITY
2. ANTI-BRIBERY AND ANTI-CORRUPTION
REGULATIONS IN MALAYSIA
3. MINISTERIAL GUIDELINES ON TRUST ADEQUATE
PROCEDURE
4. ANTI-BRIBERY & ANTI-CORRUPTION (ABAC)
OPERATION CONTROL MEASURES

AWARENESS
INTRODUCTION TO ETHICS AND INTEGRITY

TI’S GLOBAL CORRUPTION INDICATORS
Corruption Perception Index (CPI)
Ranks more than 180 countries in terms of perceived levels of public
sector corruption, as determined by expert assessments and opinion
surveys
Global Corruption Barometer (GCB)
A public opinion survey that assesses the general public’s perception and
experience of corruption in more than 60 countries
Putting Corruption Out of Business
TI surveyed 3000 business executives from 30 countries on whether they lost
business to a competitor by them paying a bribe

Naik 5 MATA
ACTUAL CORRUPTION PERCEPTION INDEX (CPI) 2014-2021
YEAR 2015 2016 2017 2018 2019 2020 2021
PERCENTAGE (%) 50 49 47 47 53 51 48
Rank/180 54 55 62 61 51 57 62
CORRUPTION PERCEPTION INDEX (CPI) VS DOING BUSINESS 2020 in
ASEAN COUNTRIES
ASEAN Countries Corruption Perception Index
(CPI) 2020 – Rank/180
ASEAN Countries Doing Business 2010 –
Rank/190
Singapore 3 Singapore 2
Brunei 35 Malaysia 12
Malaysia 57 Thailand 21
Indonesia 102 Brunei 66
Thailand 104 Vietnam 70
SOURCE : TRANSPARENCY INTERNATIONAL AND DOING BUSINESS 2020

WHAT IS INTEGRITY ?
Integrity of Individual
The harmony between what an individual says and does. His or her actions are
in accordance with moral and ethical principles as well regulations and do not
go against public interest. They also reflect promptness, correctness and
quality.
Integrity of Organizations
The integrity of an organization is reflected in the formulation and
implementation of its code of ethics, clients charter, and system or work
procedures, as well as compliance with best practices. The organization’s code
of ethics is constantly reiterated, internalized and upheld by members of the
organization until it becomes second nature, and ultimately transform into the
culture for the organization as a whole.
Integrity of Public Officials
For holders of public office, integrity means carrying out the trust and
responsibilities bestowed upon them in line with public interest. They are not
allowed to misuse their power for their self-interest, or for the interest of their
family or relatives. Should a conflict of interest occur, public interest overrides
personal interest. Holders of public office must be transparent, sincere and
accountable.

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TO INDIVIDUAL
Build self-esteem, identity and personality of
each individual
TO COMMUNITY
Determining the existence of a society with
ethics, ties alive by courtesy, mutual respect
and sustainable
TO ORGANISATION
To ensure the best service delivery, governance
best practices, build image and confidence of
stakeholders and clients
TO NATION
The factors that determine
the rise and fall of an institution's
administration, the ruling, government and
civilization of the country
IMPORTANCE OF ETHICS, INTEGRITY & VALUE

ETHICS
can be defined as rules
and regulations that have
been formed which allow
an individual to work in
accordance to moral
principles
are more external
is not a choice
can be imposed on
individuals
INTEGRITY
can be defined as the
quality of being honest and
fair
is internal
is a personal choice
cannot be imposed on
individuals
THE DIFFERENCE
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DIFFERENT MINDSETS AND APPROACHES

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ETHICS VALUE
INTEGRITY
+
=
DEFINITION
The quality of excellence that is manifested in a holistic
and integral manner in individuals and organizations.
Integrity is based on ethics and noble values and their
concrete manifestation in daily lives
A set of moral values and principles which form the
standards guiding the code of conduct of individuals,
organizations and professions.

in looking for people to hire, you look for three
qualities;
INTEGRITY, INTELLIGENCE and ENERGY.
And if you don’t have the first, the other two will
kill you...
- WARREN BUFFET

AWARENESS
REGULATIONS IN MALAYSIA

16.5 : Substantially reduce corruption and bribery in all their forms
16.6 : Develop effective, accountable and transparent institutions at all levels

What is Corruption and Bribery?
Corruption is the act of giving or receiving of any gratification
or reward in the form of cash or in-kind of high value for
performing a task in relation to his/her job description.
Bribery is a type of corruption. It refers to the act of corruptly
authorising, giving, agreeing to give, promising, offering,
soliciting, receiving, or agreeing to receive any gratification.
BRIBERY
CORRUPTION
GRATIFICATION
It is to please or to satisfy and gratification may come in the
form of money, donation, gift, loan, fee, reward, valuable
security, property or interest in property of any description
whether movable or immovable, finance benefit, or any other
similar advantagE

Terminologies
 kickback, under counter
payment, facilitation
payment, grease money,
tea/coffee money (Malaysia)
 Little envelope (Italy)
 Air supply (Uganda)
6
 Pungli - Pungutan Liar
(Indonesia)
 19.90 (US)
 Sleaze (UK)
 Black Mist (Japan)
 A jug of wine (France)

Types of Bribery
Bribery takes many forms. The benefit may not only be money. It can be anything
of value to the person being bribed, amongst others, such as:
Gifts and
entertainment
Cash
DONATE
Charity / political
donation
Travel and
Events
Preferential
selection
(employee/vendor)

Influence
peddling
Patrona
ge
Embezzleme
nt
Cronyis
m
Nepotis
m
Types of Corruption
Bribery
Corruption
10

Common Excuses for Bribery and Corruption
People find various excuses for justifying bribes or corruption. None of these represent good
business practice or provide any defence under thelaw.
“It was only a small
hamper and a lunch treat
for him and his
partner…”
“If only we’d known
that it would be
regarded as
bribe…”
“We’ve always
done it…”
“But my boss
also does it …”
“That’s the way
things work here”

 Raises serious social, moral,
economic and political
concerns,
 Undermine Good Governance
 Hinder
development and
distorts
competition
 Erodes justice,
undermines human
rights
 Obstacles to relief poverty
Impact of Bribery
 Introduce uncertainties into
commercial transactions
 Increase the cost of goods
and services
 Diminishes the quality of
products and
 services
 Loss of life and property
 Destroy trust

RASUAH SEMUDAH A, B, C, D
A AMBIL RASUAH (ACCEPT BRIBE)
B BERI RASUAH (GIVE BRIBE)
C CLAIM PALSU (FALSE CLAIM)
D SALAH GUNA KEDUDUKAN

Offences under MACC Act 694: 2009
MACC ACT 2009 (Amendment) 2018
Corruption Offences
• Section 16 (Offence of accepting
gratification)
• Section 17 (Offence of giving or accepting
gratification by agent)
• Section 17A (Offense by commercial
organization)
• Section 18 (Offence of intending to
deceive principal by agent)
• Section 23 (Offence of using office or
position for gratification)

The MACC Act 2009 came
into effect on 1 January
2009
In Malaysia, the main legislation is
the Malaysian Anti-Corruption
Commission Act (MACC Act)
2009
It led to the official
establishment of the Malaysian
Anti-Corruption Commission
(MACC) as an independent,
transparent and professional body
1 June 2020 - effective date of
implementation of Section 17A of
the MACC (Amendment) Act 2018
on Corporate Liability
The MACC (Amendment) Act
2018 came into effect on
1 October 2018 except
Section 4 (Provision on
corporate liability)
Anti-Bribery and Anti-Corruption Regulations in
Malaysia

Malaysia
Corporate Liability For Corruption
– Sec 17A(1) MACC Act 2009 (amendment 2018)
THE “OFFENCE”
A commercial organization commits an offence if a person
associated with the commercial organization corruptly gives, agrees
to give, promises or offers to any person any gratification whether for
the benefit of that person or another person with intent :-
a) To obtain or retain business for the commercial
organization; or
b) To obtain or retain an advantage in the conduct
of business for the commercial organization
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2
3
4
5

Malaysia
• Section 17A: new corporate offence introduced by the amended MACC Act and modelled on
the corporate offence provision in Section 7 of the UK Bribery Act.
• Key features of Section 17A, MACC Act:
–Corporate liability attributed to a commercial organization if an associated person pays a bribe
for the benefit of that commercial organization.
–An “associated” person is defined as “a director, partner or an employee” or “a person
who performs services for or on behalf of the commercial organization”.
–Complete defense if an organization is able to demonstrate that “adequate procedures” were in
place to prevent corrupt conduct:
o The Guidelines on Adequate Procedures set out what is meant by “adequate procedures”
(i.e. TRUST Principles).
–Penalties include a fine of not less than 10 times the sum or value of the bribe, or RM 1 million,
whichever is higher, or imprisonment for a term of up to 20 years or to both.
•MACC Act amendments were passed on 5 April 2018 and are expected to come into force on 1
June 2020.

Malaysia
Who can be liable under Corporate Liability?
ABC SB
Procurement Team
Supplier Manager
Vendors
Consultant
Human Resource
Service Provider
IN SHORT, ABC AND YOU*
Director
Clerk
* Anyone that is performing work or services for or on behalf of ABC

Malaysia
• Section 17A imposes liability on directors, controllers and management:
–Deemed liability of a commercial organization's director, controller, officer, partner and/or any
person “who is
concerned with in the management” of the affairs of that commercial organization.
–These individuals are liable for imprisonment not exceeding 20 years or a fine of not less
than ten times the sum or value of the gratification.
–Reversal of the burden of proof with the presumption of criminal liability, unless person
“proves offence was committed without his consent or connivance and that he
exercised due diligence to prevent the commission of the offence as he ought to
have exercised having regard to the nature of his function in that capacity and to
the circumstances”.
•The amended MACC Act signals a clear intention to hold individuals running businesses
accountable for corrupt acts perpetrated through their respective organizations.

AWARENESS
MINISTERIAL GUIDELINES ON TRUST
ADEQUATE PROCEDURE

MACC Act – TRUST Guidelines on Adequate
Procedures under the Malaysian Anti-Corruption
Commission Act
Corporate Liability – Guidelines on Adequate Procedures
The guidelines are issued pursuant to subsection (5) of section 17A of the MACC Act 2009, as
stated in the MACC AmendmentAct 2018.
The guidelines are designed to be principle-based (T.R.U.S.T) and for general application by
any commercial organisation of any size andindustry.
Risk assessment
Systematic review, monitoring and
enforcement
T
R
S
Top level commitment
Undertaking of control measures
U
T Training and communication
https://f.datasrvr.com/fr1/119/75252/Prime_Mini
sters_Department_-
_Guidelines_on_Adequate_Procedures.pdf

AWARENESS
ANTI-BRIBERY & ANTI-CORRUPTION (ABAC)
CONTROL MEASURES

ABAC Control Measures
Introduction
Anti- Bribery and Corruption Policy (“ABC Policy”) with reference to the
MACC Act, which sets out strong ‘tone from the top’ against all corrupt
practices, which includes the framework for implementation, and the
responsibilities of the Associated Person in regards to observing and
upholding ABC Sdn Bhd zero-tolerance position on corruption and
bribery.
ABC Policy applies to all directors, employees (whether temporary, fixed-
term, or permanent), trainees, seconded staff, casual workers, agency
staff, volunteers, interns, agents of ABC.
ABC Sdn Bhd also expects its partners, contractors, sub-contractors,
consultants, representatives and others performing work or services for
or on behalf of ABC Sdn Bhd , or any other person associated with ABC
Sdn Bhd to comply with ABC’s ABC Policy when performing such work or
services.

Code of Conduct & Ethics
This Policy must be read in conjunction with
ABCs Code of Conduct & Ethics.
Responsibilities and Commitments of:
Board of Directors and its respective
Committees
Senior Management
Associated Persons
Role of ABC’s IGU/Compliance Function
Roles of Compliance division in
handling ABC matters.
Risk Assessment
Frequency, intent and review of ABC risk
assessment report
Control Measures
Control measures shall be implemented by
ABC includes Due Diligence, Reporting
Channel, Conflict of Interest, Gifts and
Entertainment, Donation and Sponsorship,
Facilitation Payments, Financial Controls,
Procurement and Record Keeping
Review, Monitoring and Enforcement
Review of ABC programme by Internal Audit
and Compliance
Monitor performance of personnel in relation
to this Policy Enforcement - appropriate
action to be taken as against non-
compliance of this Policy
Training and Communication
ABC shall develop appropriate training and
communication plan on anti-bribery and
corruption for relevant parties.
1
2
5
The policy documents highlights the following principles on anti-bribery and
anti- corruption
Anti-Bribery and Anti-Corruption Policy
6
7
3
4

Due Diligence
In accordance to ABC’s ABC Policy, ABC shall ensure and expect that Associated Persons
share ABC’s zero-tolerance position against bribery and corruption.
Hence, ABC shall undertake due diligence to assess the integrity of the Associated Persons,
which shall include background checks or document verification or conducting
interviews, prior to entering into any formalized relationship with them and periodically
thereafter.
Associated Person
Directors, staff (whether temporary, fixed term, or
permanent), trainees, interns, seconded staff, agency staff,
casual workers, volunteers, agents, partners, contractors,
subcontractors, vendors, suppliers, service providers,
consultants, representatives and others performing work or
services for or on behalf of ABC.

Procurement - Guiding Principles
ABC will ensure that appropriate Guiding Principles and controls are implemented to govern the
conduct of the procurement activities of ABC. These willinclude:
Eliminate use, remove
waste and control
usage
Value for Money
Fair dealing, Open and
Effective Competition
and Ethical
Integrity
Behaviour
Responsible Financial
Management
of
Assessment
Suppliers

Conflict of Interest
A conflict of interest is a situation in which a person or organization is
involved in multiple interests, financial or otherwise, and serving one
interest could conflict against another.
What is
Conflict of
Interest?
ABC seeks to ensure that a conflict of interest does not affect the interests of ABC, its
shareholders, clients and other stakeholders through the identification, prevention and
management of the conflict of interest.Hence,
We must not allow any conflict of interest, bias or undue influence of others to
override our business and professionaljudgment.
We must not be influenced by friendship or association in performing ourrole.
Decisions must be made on a strictly arms-length businessbasis.
All Associated Persons shall declare any personal interest he/she or persons
connected to the Associated Person may have in any ABC’s decision or matter
he/she is involved in.

Conflict of Interest
Take advantage of any information
obtained in the course of duty for
personal benefit.
Make use of your position to solicit or
receive favours from customers.
Use ABCs name or facilities for
personal advantage in political,
investment or retail purchasing
transaction, or in similar types of
activities.
Ensure that no other staff
should misuse their
position.
Discourage customers and
agents from offering them
gifts, favours or services.
Report misuse of position
or such irregularities in
confidence to ABC.
DOs DON’Ts

PROHIBITED GIFTS & ENTERTAINMENT or SIMILAR BENEFIT
The following gifts and entertainment are prohibited to be accepted or offered by ABC’sstaff:
Any amount of cash or cash equivalent as a form of a monetary gift
(angpows, gift cards, vouchers etc.) - unless get approval from the authorized
party and amount within the acceptable limit
Any other forms of gifts and/or entertainment, in exchange for an act by ABC
or an act for the benefit of ABC
Any other forms of gifts and/or entertainment for purposes which are
prohibited under the laws of Malaysia, e.g. bribery andcorruption
Gifts or entertainment received that are not approved will be returned or refunded back to the
person who provided the said gift or entertainment.
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Ensure recipients are of
reputable standing
Conduct proper due diligence
on the recipients of the
donations or sponsorships
Ensure necessary internal
approval
is obtained
Give or accept political donations
and sponsorships
Give donations and sponsorships
that are not permitted by law
Allow a party connected to the
recipient to participate in the
approval of donations and
sponsorships
Ensure donations and
sponsorships are permitted by
law
Give or accept donations
and
sponsorships without
obtaining
internal
approval
DOs DONTs
Ensure it is declared
and
documented
Give or accept
donations
and
proper
du
e
sponsorships
withou
t diligence
Donation and Sponsorship - Do’s and Don’ts

Facilitation Payment
Fees paid in exchange for a lawful express or preferential service, e.g. quick turnaround visa
and passport services or police escort services are not considered as Facilitation Payments
provided that they fulfil the following conditio ns:
The service
is open and
available to
everyone
The fee is in
accordance
with an official
and published
price list
The fee is
not payable
to
individuals,
but to the
organisation
or entity
A legal and
official
receipt by the
organisation
or entity can
be provided.
ABC shall not make any facilitation payment.
Payment made to secure or expedite the performance of an action or a
service that ABC is entitled to, example: where a government official is
given money or goods to perform (or speed up the performance of) an
existing duty.
What is
Facilitation
Payment?

Reporting and Escalation

Reporting and Escalation
Senior Management
Human Resource
Division
Whistleblowing Channels
To whom you should escalate and report if you witness a misconduct or wrongful
act?
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2
3
Escalate the issueto
senior management
in verbal and writing
Raise & Report the
misconduct to your
HR Division
Fill up and send
ABC’s whistleblower
form to IGU

Whistleblowing
Whistleblowing
Who can raise concerns?
 Any employee of ABC Sdn
Bhd
 Any (Legal or natural) person
providing services to / or
having a business relationship
withABC .
Will there be any action taken against you?
No! You will be protected from retaliation and from
disclosure of your identity, provided your disclosure was
made in good faith
Whistleblowing is the act of reporting of suspected wrongdoing, misconduct, unethical activity
within public, private or third-sector organisations.
What to raise and escalate?
 Any criminal offences
including fraud , corruption,
bribery and blackmail.
 Any failure to comply legal or
regulatory

Consequences of Non-Compliance

Consequences of Non-Compliance
Fine and Penalties for Offenses
Receiving and giving of corrupt gratification (bribery)
The MACC Act 2009 Sections 16 and 17
Fine of not less than 5 times the amount of the bribe or RM10,000
whichever is higher; AND
Jail sentence not exceeding 20 years per offense
Corporate Liability on corruption
MACC (Amendment) Act 2018 Section 17A
Fine of not less than 10 times the amount of the bribe or RM1
million whichever is higher; AND
Jail sentence not exceeding 20 years per offense.

Our Responsibilities

Our Responsibilities
Do not
participate in
bribery
Be familiar with
the law
Understand
where the risk of
bribery or
corruption is in
our organization,
industry, and
country
Understand the
impact of a
bribery incident
to our
organization
Ensure and
follow proper
policies and
procedures
Report your
concerns to
relevant parties
in the event of
bribery or
corruption
What are our
responsibilities?

ABC SB_ABAC AWARENESS.pptx

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