As #MalaysiaBaru approaches its nine-month mark, with a new government and a renewed promise of reforms, the revelations have been endless and illuminating. The media has been kept on its toes and the public to their newsfeeds as, one by one, important people in high positions are found to be guilty of white-collar crime, frequently to the tune of millions.
The latest involves the arrest of someone formerly at the top of Tourism Malaysia that awarded a contract worth RM99.6 million to a company of dubious origins and repute. During the time of his arrest, he was also an executive chairman and managing director of two other private companies. The repercussions of his arrest trickled from the top-down as the share prices of both companies saw declines in the market.
Such daring instances of corruption are frequently committed by the powerful — those who wield enough influence and confidence that they feel they could get away with it.
The question remains: How does a company stop its top brass — those who flex the most power in the organisation — from abusing its privileges?
Keeping careful tabs on them is one way to do it. Esteemed institutions like banks and other high-risk institutions do it, and for good reason: in 2018, 49% of companies surveyed globally said that they have experienced white collar crime, with 52% of all fraud being committed by people within the organisation itself.
In light of the recent increase of corruption news, it seems that the Malaysia Anti-Corruption Commission (MACC) is widening the scope that criminalises commercial organisations of all sizes for corruption. With a new MACC (Amendment) Bill 2018on its way to full enactment in 2020, corporate companies will be held liable, should corrupt actions be found conducted in the interest or on behalf of the organisation, be it by its management, employees and subsidiaries; or through joint ventures, business partners and intermediaries.
By upholding employees of all ranks and status to regular, secure background checks, an organisation is doing more than just ensuring it doesn’t get swindled from the inside — it retains the integrity of the institution and prevents far-spreading repercussions to the community and the economy. Trust is a privilege, and while it can be most certainly be earned, taking proactive steps to secure it is perhaps one of the best investments a company can make.
Find out more about how you can stop your workplace from the same — visit www.verityintel.com.