Enhancing International
Cooperation Against
Corruption: Malaysia
Experience
ICAC SYMPOSIUM HONG KONG
10 MAY 2012
Dato’ Sri Abu Kassim Mohamed
Chief Commissioner
Malaysian Anti-Corruption Commission
1
What does International Cooperation entails?
 Extradition –Article 44
 Transfer of sentenced Persons-Article 45
 Mutual Legal Assistance-Article 46
 Transfer of criminal proceedings-Article 47
 Law Enforcement cooperation-Article 48
 Joint Investigation –Article 49
 Special Investigative techniques-Article 50
UNCAC Chapter IV Articles 43-50
2
Transnational Bribery Investigated before 2002:

RMAF-Northrop
Corporation Case
(1971-1974)
USD177,473 (1/3 of
commission) solicited
by Group Captain
(then Wing
Commander) of
RMAF for purchase of
sixteen(16) F-5
Fighter Jets at USD
39 Million.
3
Transaction of Bribe in the RMAF-Northrop Case
Bribe
solicited by
accused
through
Northrop
agent in
Malaysia
Northrop
Corporation
US
Swiss Bank
Zurich
Chase
Manhattan Bank
Singapore
Accused – paid
in Cash USD
58,350.00
4
PUNB US$5 Billion BOND SCANDAL

PUNB (Perbadanan Usahawan Nasional Berhad or National
Entrepreneur Corporation Ltd) –Issuance of US $5 billion of
Corporate Bond by its former CEO for purpose of
investment in the British Virgin Islands by an a Londonbased investment consultant without the approval of the
Board.
Assistance to obtain evidence in London was accorded by
the London Metropolitan Police Service in 2001. Three
key witnesses were located in London and had their
statements taken by the MACC (then ACA) at the Malaysian
Embassy. No MLA instrumentalities were involved
throughout the investigation until the suspect was
charged.
5
LAW ENFORCEMENT COOPERATION (INFORMAL)
PUNB Corporate Bond Scandal
Collaboration
Country/Agency(s):
London Metropolitan Police Service, United Kingdom
Offence:
The signing of “Consultancy Agreement” with an offshore
company and the issue of a bond certificate for securing
financial resources without approval of the Board.
Assistance Needed:
To take the testimony of British witnesses
Result(s):
British witnesses were identified and information was
successfully obtained
Status of Case:
Accused were charged in Kuala Lumpur Session Court,
Malaysia
Value of
Gratification:
USD5 billion worth of bond
Time taken to fulfil
request by MACC
WITHIN TWO WEEKS
LONDON POICE
AFTER
CONTACTING
THE
6
Transnational Bribery Investigated
before and after 2002

Perwaja RM 76.4 million Scandal
CEO of Perwaja Steel Mill was charged for
Criminal Breach of Trust ¥2,981,580,000 or
RM76.4 million between 1994 and 1995
allegedly as “fee” for technical assistance
rendered by a Japanese company known as
NKK Corporation in relation to the erection and
construction of a “Beam and Section mill Plant
Project” in Malaysia.
7
Perwaja Case: Money Trail
Malaysia
¥ 2,891,580,000
Paid supposedly as fee for
technical assistance to NKK
Corp on 18 Feb 94
Hong Kong (Frilsham
Enterprise)¥2,890,130,210
(after deduction of bank
charges) on 25 Feb 94)
Money withdrawn and remitted to Geneva in 3 Bank
Accounts: ¥ 2,486,260,00 (Calyon Corp).1 March
94) + ¥ 143,680,210 (A/C of Yuji Maeda)+¥
260,190,000 ( Waterfront/Borneo Enterprise)
Zurich ¥ 2,294,600,000 (7 -8 March 94) Sitar
Investment Ltd & Lotus Development Inc.
Foreign Bank in Singapore
(A/C of family member)
8
MUTUAL LEGAL ASSISTANCE IN THE PERWAJA CASE
Collaboration
Country/Agency(s):
Ministry of Justice, Japan; Federal Office of Justice,
Switzerland and Independent Commission Against
Corruption (ICAC), Hong Kong
Offence:
Accused committed breach of trust upon a property
owned by Perwaja Rolling Mill & Development Sdn Bhd
Assistance Needed:
To obtain documents and evidence of several key
witnesses in Japan, Switzerland and Hong Kong
Result(s):
Documents and evidence of witnesses involved in
Japan, Switzerland and Hong Kong were successfully
obtained
Status of Case:
Accused was charged in Session Court, Kuala Lumpur,
Malaysia
Value of Gratification:
USD24,724,920 million
9
FORMAL (MLAR) VS INFORMAL (INTER-AGENCY) REQUEST
Requesting Anti-Corruption Agency.
Requesting Foreign
Anti-Corruption Agency
AG Chamber Office.
Foreign Ministry. (Sender)
Instruction given to relevant
enforcement agency /court
Request has been fulfilled
Foreign Ministry of Justice/AG Chamber.
Approx 10 mth
Foreign Ministry of Justice/AG Chamber.
Requested Foreign
Anti Corruption Agency
Fulfillment of
request made
Approx 2 weeks– 3 mth
Foreign Ministry (Receiver).
Foreign Ministry (Receiver).
Foreign Ministry. (Sender)
Requesting Foreign
Anti-Corruption Agency
AG Chamber Office. (sender)
Requesting Anti-Corruption Agency.
10
SUMMONS AND WARRANTS ACT 1971
Extradition Arrangements for Malaysia, Singapore and BruneiCASE 1
Collaboration
Country/Agency(s):
Corrupt
Practices
Singapore
Investigation
Bureau
(CPIB),
Offence:
Accused was caught for offering bribe to the Head of
Immigration on duty at Singapore's Tuas Checkpoint
Assistance Needed:
To arrest accused and issue Arrest Warrant which was
issued by the Singapore Magistrate Court
Result(s):
Accused was officially handed in by the representative
of MACC to the CPIB Singapore Officers
Status of Case:
Accused pleaded guilty to both counts
Time Taken to fulfil
request by CPIB
Two Weeks
11
SUMMONS AND WARRANTS ACT 1971
Extradition Arrangements for Malaysia, Singapore and BruneiCASE 2
Collaboration
Country/Agency(s):
Corrupt
Practices
Singapore
Investigation
Bureau
(CPIB),
Offence:
Accused (a former Singapore Customs officer) had been
involved in accepting bribe.
Assistance Needed:
To arrest accused and issue Arrest Warrant which was
issued by the Singapore Magistrate Court.
Result(s):
Accused was detected to be working in a chemical
company in Johor Bahru. He was arrested and officially
handed in by the representative of MACC to the CPIB
Singapore Officers
Status of Case:
Accused was charged for corruption offences
Time Taken to fulfil
request by CPIB
One Month
12
SUMMONS AND WARRANTS ACT 1971
Extradition Arrangements for Malaysia, Singapore and BruneiCASE 3
Collaboration
Country/Agency(s):
Anti-Corruption Bureau Brunei Darussalam (BMR)
Offence:
Accused was involved in several corrupt practices for
several contracts amounting to B$8 million
Assistance Needed:
To detect and arrest accused with Arrest Warrant which
was issued by Brunei Magistrate Court .
Result(s):
Accused was detected in the City Centre of Kuching,
Sarawak. He was arrested and officially handed in by
the representative of MACC to the BMR Officers
Status of Case:
Accused was charged for corruption offences
Time Taken to fulfil
request by ACB Brunei
One Week
13
MUTUAL LEGAL ASSISTANCE ON INVESTIGATION BY
MACMA BRANCH FOR THE YEAR 2010
The MLA requests below pertain only to investigation of corruption offences unless indicated with (*)
No.
MLA
Non- MLA
MLA & Non- MLA
Requesting State
Requested State
1.
-
√
-
MACC
(MACC HQ)
SINGAPORE
( CPIB SINGAPORE )
2.
-
√
-
CPIB SINGAPORE
MALAYSIA
3.
-
√
-
MACC
(MACC HQ)
NEW ZEALAND
( INTERPOL )
4.
-
√
-
CPIB SINGAPORE
MALAYSIA
5.
-
√
-
MACC
(MACC State)
6.
-
√
-
MACC
(MACC State)
BRUNEI ( ACB BRUNEI )
7.
-
√
-
ACB Brunei
MALAYSIA
8.
-
-
√
MACC
(MACC HQ)
HONG KONG & CHINA
9.
-
√
-
CPIB SINGAPORE
MALAYSIA
10.
-
√
-
CPIB SINGAPORE
MALAYSIA
THAILAND
( National Anti Corruption
Commission & Consulate Office
Songkhla )
14
11.
-
√
-
CPIB SINGAPORE
MALAYSIA
12.
-
√
-
CPIB SINGAPORE
MALAYSIA
13.
-
-
√
MACC
(MACC HQ)
SINGAPORE
14.
-
√
-
MACC
(MACC HQ)
SINGAPORE
15.
-
√
-
MACC
(MACC State)
BRUNEI ( ACB BRUNEI )
16.
-
√
-
MACC
(MACC HQ)
SINGAPORE
( CPIB SINGAPORE )
17.
-
√
-
MACC
(MACC State)
18.
√
-
-
MACC
(MACC HQ)
UAE ( Dubai )
19.
-
√
-
MACC
(MACC HQ)
INDIA ( New Delhi )
20.
-
√
-
ACB Brunei
MALAYSIA
21.
-
√
-
CPIB SINGAPORE
MALAYSIA
*22.
√
-
-
MACC
(MACC HQ)
SINGAPORE & AUSTRALIA
THAILAND
( National Anti Corruption Commission &
Consulate Office Songkhla )
*Note MLA Request pertaining to Anti-Money Laundering Offences
15
Mutual Legal Assistance and Non Mutual Legal Assistance
CASE 1
Collaboration
Independent Commission Against Corruption
Country/Agency(s (ICAC), Hong Kong
):
Offence:
Fraud
Assistance
Needed:
To record statements of two Malaysian
Government Officers to verify some official
documents in Feb.2012
Result(s):
Statements
officers
Status of Case:
Accused was charged in the HK Court on 28
March 2012
Time taken to
fulfil MLA Request
by ICAC
Less than two months
of
two
Malaysian
Government
16
Non Mutual Legal Assistance
CASE 2
Collaboration
Country/Agency(s):
Corruption Eradication Commission (CEC), Indonesia
or KPK
Offence:
To trace a witness in Indonesia to attend a trial in
Malaysia
Result(s):
The witness managed to be traced in a remote village
called Ponorogo, Jakarta. KPK assisted to transport
the witness to Malaysia
Status of Case:
The accused was found guilty for 2 charges of
corruption
and
sentenced
tow
12
months
imprisonment and fined RM 10,000 for each charge.
Time Take to fulfil
request made by MACC
TWO WEEKS
17
Joint Investigation Teams
 To
carry out operations
(surveillance, sting
operations, investigationgathering of evidence and
arrest.)
18
JOINT INVESTIGATIONS AND SPECIAL INVESTIGATIVE TECHNIQUES
Collaboration
Anti-Corruption
Country/Agency(s): Darussalam
Bureau,
Brunei
Offence:
One
syndicate
using
Malaysian
registered vehicles involving smuggling
of diesel to Sarawak, Malaysia
Assistance Needed:
Undercover Operation to obtain evidence
Result(s):
Information were obtained including
names and activities of Custom Officers
involved
Status of Case:
3 arrests were made
19
JOINT INVESTIGATIONS AND SPECIAL INVESTIGATIVE TECHNIQUES
Collaboration
Country/Agency(s):
Anti-Corruption Bureau, Brunei Darussalam
Offence:
Between 40 to 50 registered 4WD vehicles
were involved in smuggling diesel almost daily
from Kuala Belait, Brunei Darussalam to Miri,
Malaysia
Assistance Needed:
To obtain information pertaining to records of
4WD vehicles
Result(s):
Information were obtained including names
and activities of Custom Officers involved.
Status of Case:
42 arrests were made
Accused/Value of
Gratification:
Variation of amounts
20
Joint Investigation: MACC and Australian Federal Police
•L
Polymer Note Printing Contract involving Malaysian Central Bank and
Note Printing Australia ( A subsidiary of Australian Reserve Bank) in 2009
• In 2010 MACC has initiated a Joint Investigation with Australian Federal
Police (AFP)
• AFP officer being attached with MACC to work on the case and gather
intelligence information
• The
focus of Joint Investigation is to assist investigation as well as
preparation of Mutual Legal Assistance request to be submitted at later
stage
• Finally MACC has charged an agent as well as former senior officer of
Malaysian Central Bank under Anti Corruption Act 1997
• AFP on the other hand managed to charge 7 senior officers of Securency
and Note Printing Autralia as well as the companies themselves under
Bribery of Foreign Public Officer offence.
Capacity and Capability Building
Experts from State parties – to be invited
to share knowledge and skills;
 Exchange programmes-Officers of anticorruption bodies to be given
opportunities for training/attachment of
other State parties;
 Sharing of Best practices

22
The Role of MACA


MACA, as our commitment to the international
community in combating corruption, has conducted
several international courses based on Investigation,
Prosecution, Intelligence, and Prevention
techniques and skills.
Types MACA International courses :
1.Scheduled Courses conducted on a yearly basis
2.Tailored Courses –conducted upon request by
other international/regional anti-corruption
agencies (E.g. Government Inspectorate of Vietnam;
Kazakhstan; Independent Commission Against
Corruption Fiji; High Office on Anti-Corruption
Afghanistan; Bhutan Anti-Corruption Commission
Officers
23
MACA-EUPOL AFGHANISTAN
Management and Prosecution Training
13 - 22 February 2012
24
MACA-EUPOL AFGHANISTAN
Management and Prosecution Training
13 - 22 February 2012
25
MACA - BHUTAN
ANTI-CORRUPTION COMMISSION
Basic Training
16 May – 3 June 2011
26
MACA - BHUTAN
ANTI-CORRUPTION COMMISSION
Basic Training
16 May – 3 June 2011
27
MACA – FICAC FIJI (2010)
28
FUTURE COLLABORATION
Collaboration
WORLDWIDE
Offence:
Human Trafficking
Assistance Needed:
To obtain information pertaining to human trafficking
The Link:
Studies have shown that there is a link between
corruption and human trafficking. In eradicating
corruption, we may also eradicate human trafficking.
This can only be done if there is International
Cooperation.
International Cooperation depends on the political
will of governments.
29
Edmund Burke in 1770 wrote in
“Thoughts on the Cause of the
Present Discontents” that “when bad
men combine, the good must
associate; else they will fall, one
by one, an unpitied sacrifice in a
contemptible struggle” This attribute
to the statement that “The only
thing necessary for the triumph
of evil is for good men to do
nothing”
End
Thank You
31
32
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