On 28 May 2019, our Partner Mr. G Rajasingam and Senior Associate Ms. Nik Azila Shuhada were given the opportunity to brief the Board of Directors of Bintulu Port Holdings Berhad (BPHB) on the scope and significance of the amendments to the Malaysian Anti-Corruption Commission Act 2009 (“MACC Act 2009”), in particular section 17A which introduces corporate liability for corruption in Malaysia. The amendments to the MACC Act 2009 will come into force on 1 June 2020. The Board of Directors were also briefed on the Guidelines on Adequate Procedures issued by the Minister pursuant to his powers under section 17A(5) of the Act.
Once section 17A comes into force, commercial organisations may be held accountable if a person associated with the organisation engages in corrupt practices with the intention to obtain or retain business or an advantage for the organisation. As such, it is important for organisations to exercise greater oversight over the conduct of their employees. It is equally important for organisations to have in place adequate measures to ensure that their businesses are insulated from corrupt practices. The existence of these adequate procedures afford organisations a statutory defence in the event of corrupt practices by any of their employees.
We would like to thank the Board of Directors of BPHB for the opportunity and trust.