MACC flags governance weaknesses as root cause of leakages
KUALA LUMPUR: Governance weaknesses are among the most common aspects identified by the Malaysian Anti-Corruption Commission (MACC) during preliminary investigations into leakage and misappropriation within organisations in the country.
The Malaysian Anti-Corruption Commission (MACC) has identified governance weaknesses as a primary cause of financial leakages within organisations in Malaysia. MACC chief commissioner Datuk Seri Abdul Halim Aman stated that the commission investigates three main areas under the MACC Act 2009, including corruption, misappropriation, and abuse of power.
However, governance weaknesses are often found to be the underlying issue in such investigations. MACC chief commissioner emphasized that governance weaknesses should be addressed for improvement and rectification, rather than immediately being considered evidence of criminal activity. He clarified that MACC cannot provide judgments solely based on governance issues, but can offer advice to rectify and improve these weaknesses within organisations.
Failure to establish proper governance procedures can negatively impact fund management, leading to budget leaks. This highlights the importance of good governance not only for compliance purposes but also to ensure public funds are utilized as intended. When governance issues are identified, MACC takes follow-up action by dispatching teams to affected agencies, companies, or organisations to assist in addressing these weaknesses.
Public awareness of the significance of governance is crucial in preventing leakages and maintaining public trust in the allocation and management of funds. The media plays a vital role in educating the public, agencies, and companies about the importance of governance in fund management and its impact on public confidence.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
