Goverment serious about this business of integrity!

The New Straits Times, Kuala Lumpur
12 November 2005

COMMENT: Get serious about this business of integrity
Sulaiman Mahbob

GOVERNMENT officers are often blamed for corrupt practices in the
country, perhaps elsewhere, too.

This is because they are directly involved in the administration of
various services and facilities such as issuing licences and permits,
awarding
tenders, and in procurement exercises.

The fact of the matter is that people in business and commerce are
equally to be blamed. Bribes could start with simple appreciation or
tokens of
appreciation given to those involved in administering those services and
facilities.

However, after some time, these practices can become a culture and
people expect to be given something for what they have done, although it
is a matter of duty.

As we go down the ladder, some of the junior staff may find it even more
acceptable to receive monetary consideration for facilitating
applications. They fail to differentiate between what is bribery and what
is a token of appreciation.

As for the private sector, many feel that it is better to give some
money and get the approval fast rather than be ethical but risk a long
wait.

The National Institute of Integrity's study revealed that the givers of
bribes are largely from the private sector.

This is where greater transparency and the use of IT will help in
facilitating decisions and approvals. The criteria are clear to all
and the element of arbitrariness is minimised.

Staff can no longer feel that they have gone out of their way to help
the processing of applications.

One does not feel obliged to give any appreciation at all except to say
thank you.

There are three main areas where the private sector can play a
significant role in enhancing integrity in the country.

The first is in curbing corruption; the second in strengthening
corporate governance; and the third in practising good business ethics.

There are no two ways about it: Corruption is legally and morally
wrong. It will destroy society if not curbed in the early stages.

Sometimes, one says that direct bribery is wrong, but what about
abuse of power and malpractice? They too are morally wrong and must be
kept to the very minimum.

Leaders in the private sector must not sweep under the carpet any
observed corrupt practices in their dealings with the Government. They
must be responsible enough to take the matter up with the leaders of the
departments, either officially or discreetly. The point is, it must
be done.

Good corporate governance is one important area that the private
sector has to attend to seriously.

At the moment, this is seriously observed among the listed companies.
However, among the non-listed companies there is a need to strengthen
this matter to improve corporate management all round, with greater
accountability, ethics and transparency.

In 2003, only 43 per cent of companies complied with company law and
in 2004 this percentage had increased to 63 per cent after an enforcement
drive by the Companies Commission. Good corporate governance protects
shareholders' interests, especially those of minority shareholders.

The commission once initiated a move to make it compulsory for
directors to attend a one-and-a-half day seminar on their fiduciary
duties.
Because of some lobbying, however, we failed to make it mandatory. In the
United Kingdom, new directors are required to spend one day at Company
House (the registrar's office) to get acquainted with their duties. This
explains the over-95 per cent compliance with company law there.

The third major concern is business ethics. Because we are yet to have a
fair trade law, it is all the more important that companies practise
good ethics in dealings involving business-to- business as well as
business-
to-consumer relations. Dealings that are legal are not necessarily
ethical. It is good to be both.

The records show thousands of cases of industries, dealers and traders
compromising consumer standards and values every year, based on
information from the Consumer Claims Tribunal in 2003-2005.

The Government has also set up the Housing Claims Tribunal to attend to
cases of developers and contractors not meeting contractual obligations.
Recently, the ministry concerned threatened to publicise the names of
developers that flouted the law.

Malaysians, therefore, need to take this matter of integrity
seriously. The public and private sectors, non-governmental organisations,
individuals and the leadership must contribute to this process of
enhancing
integrity. If we cannot move it physically, let us do it verbally, at
least. But we must make the effort. The launch of the annual National
Integrity Day on Nov 5 should make it clear that this matter is important
to our economic and social development and to our ranking as a clean
nation within the
international community.

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* The writer heads the Malaysian Institute of Integrity.

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