1 Enhancing International Cooperation Against Corruption: Malaysia Experience Dato’ Sri Abu Kassim Mohamed Chief Commissioner Malaysian Anti-Corruption

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Enhancing International Enhancing International Cooperation Against Cooperation Against Corruption: Malaysia Corruption: Malaysia

ExperienceExperience

Dato’ Sri Abu Kassim MohamedChief Commissioner

Malaysian Anti-Corruption Commission

ICAC SYMPOSIUM HONG KONG

10 MAY 2012

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UNCAC Chapter IV Articles 43-50

What does International Cooperation entails?

Extradition –Article 44Transfer of sentenced Persons-Article 45Mutual Legal Assistance-Article 46Transfer of criminal proceedings-Article 47Law Enforcement cooperation-Article 48Joint Investigation –Article 49Special Investigative techniques-Article 50

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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.

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Northrop Corporation US

Swiss Bank Zurich

Chase Manhattan Bank Singapore

Accused – paid in Cash USD 58,350.00

Transaction of Bribe in the RMAF-Northrop Case

Bribe solicited by accused through Northrop agent in Malaysia

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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 London-based 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.

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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 fulfilrequest by MACC

WITHIN TWO WEEKS AFTER CONTACTING THE LONDON POICE

LAW ENFORCEMENT COOPERATION (INFORMAL)PUNB Corporate Bond Scandal

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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.

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Perwaja Case: Money TrailMalaysia

¥ 2,891,580,000

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)

Paid supposedly as fee for technical assistance to NKK Corp on 18 Feb 94

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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

MUTUAL LEGAL ASSISTANCE IN THE PERWAJA CASE

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Requesting Anti-Corruption Agency.

AG Chamber Office.

Foreign Ministry. (Sender)

Foreign Ministry (Receiver).

Foreign Ministry of Justice/AG Chamber.

Instruction given to relevant enforcement agency /court

Request has been fulfilled

Foreign Ministry of Justice/AG Chamber.

Foreign Ministry (Receiver).

Foreign Ministry. (Sender)

AG Chamber Office. (sender)

Requesting Anti-Corruption Agency.

Requesting Foreign Anti-Corruption Agency

Requested Foreign Anti Corruption Agency

Requesting Foreign Anti-Corruption Agency

Fulfillment of request made

FORMAL (MLAR) VS INFORMAL (INTER-AGENCY) REQUEST

Ap

pro

x 10 mth

Ap

pro

x 2 weeks– 3 m

th

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Corrupt Practices Investigation Bureau (CPIB), Singapore

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

SUMMONS AND WARRANTS ACT 1971 Extradition Arrangements for Malaysia, Singapore and Brunei-

CASE 1

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Corrupt Practices Investigation Bureau (CPIB), Singapore

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


CASE 2

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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


CASE 3

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MUTUAL LEGAL ASSISTANCE ON INVESTIGATION BY MACMA BRANCH FOR THE YEAR 2010The 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


NEW ZEALAND ( INTERPOL )


5. - √ - MACC(MACC State)

THAILAND( National Anti Corruption

Commission & Consulate Office Songkhla )

6. - √ - MACC(MACC State) BRUNEI ( ACB BRUNEI )

7. - √ - ACB Brunei MALAYSIA

8. - - √ MACC(MACC HQ) HONG KONG & CHINA



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13. - - √ MACC(MACC HQ) SINGAPORE

14. - √ - MACC(MACC HQ) SINGAPORE

15. - √ - MACC(MACC State) BRUNEI ( ACB BRUNEI )


SINGAPORE( CPIB SINGAPORE )

17. - √ - MACC(MACC State) THAILAND

( National Anti Corruption Commission & Consulate Office Songkhla )

18. √ - - MACC(MACC HQ) UAE ( Dubai )

19. - √ - MACC(MACC HQ) INDIA ( New Delhi )

20. - √ - ACB Brunei MALAYSIA


*22. √ - - MACC(MACC HQ)

SINGAPORE & AUSTRALIA

*Note MLA Request pertaining to Anti-Money Laundering Offences

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Independent Commission Against Corruption (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 of two Malaysian Government 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

Mutual Legal Assistance and Non Mutual Legal Assistance

CASE 1

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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

Non Mutual Legal Assistance

CASE 2

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Joint Investigation TeamsJoint Investigation Teams

To carry out operations (surveillance, sting operations, investigation- gathering of evidence and arrest.)

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Anti-Corruption Bureau, Brunei Darussalam

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

JOINT INVESTIGATIONS AND SPECIAL INVESTIGATIVE TECHNIQUES

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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

JOINT INVESTIGATIONS AND SPECIAL INVESTIGATIVE TECHNIQUES

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.

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Capacity and Capability BuildingCapacity and Capability Building

Experts from State parties – to be invited to share knowledge and skills;

Exchange programmes-Officers of anti-corruption bodies to be given opportunities for training/attachment of other State parties;

Sharing of Best practices

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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

The Role of MACA

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MACA-EUPOL AFGHANISTAN

Management and Prosecution Training13 - 22 February 2012

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Management and Prosecution Training13 - 22 February 2012

MACA-EUPOL AFGHANISTAN

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Basic Training 16 May – 3 June 2011

MACA - BHUTAN ANTI-CORRUPTION COMMISSION

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MACA - BHUTAN ANTI-CORRUPTION COMMISSION

Basic Training 16 May – 3 June 2011

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MACA – FICAC FIJI (2010)

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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.

FUTURE COLLABORATION

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”

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End

Thank You

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