Corruption lingers in Malaysia


In the latest ranking of the Corruption Perception Index carried out by Transparency International (TI), Malaysia is placed 56th among 180 nations surveyed – down 11 levels from its 46th position in the last CPI.

Malaysia’s index score of 4.5 is its worst showing since the survey started in 2001. Its best showing was in 2002, when it secured the 33rd position.

Countries score on a scale of 10 (very clean) to 0 (very corrupt).

Malaysia has scored within a narrow band of 4.9 to 5.1 since 2002 with little improvement. Its current index score ties it with Lativa, Namibia, Samoa and Slovakia. South Africa is ahead with a CPI of 4.7.

The high and low scorers

The high-scoring countries are New Zealand (9.4) and Denmark (9.3). Singapore and Sweden tied at 9.2 and Switzerland at 9.0.

TI said the scores reflect political stability, long-established conflict of interest regulations and solid, functioning public institutions.

The lowest scorers are Somalia (1.1), Afghanistan (1.3) and Myanmar ( 1.4). Sudan and Iraq tied at 1.5; Sudan tied with Iraq at 1.5, reflecting fragile unstable states scarred by war and ongoing conflict.

The Berlin-based watchdog says surveys carried out in the past year showed a significant drop in CPI, not only compared to previous years, but also compared among countries.

The surveys asked questions relating to abuse of public power for private benefit, which include questions on bribery of public officials, kickbacks in public procurement, embezzlement of public funds and the strength and effectiveness of public sector anti-corruption efforts.

The surveys were carried out among selected observers, business people and country analysts, including local experts. The survey did not cover perception of corruption in the private sector.

"A fall of 0.6 from 5.1 in 2008 to 4.5 in 2009 is alarming, not only to the people of Malaysia but also to the government of the day," said TI Malaysia president Paul Low at a media briefing on the CPI here Tuesday.

He said there was a glaring contrast in CPI scores between Malaysia and some emerging Asian economies.

Alarming fall

rom 1995 to 2009, China had improved from 1.94 to 3.6; South Korea, from 4.29 to 5.5; Thailand from 2.79 to 3.4; Indonesia from 1.94 to2.8; whereas Malaysia dropped from 5.28 to 4.5.

Low said Malaysia's alarming fall in CPI 2009 may be attributed to the perception that there has been little progress in combating corruption as well as lack of political will in implementing effective anti-corruption measures.

He said the perception of corruption is not only detrimental to investor confidence but will also hit hard on the poor. “They are the most disadvantaged people.

“The cost of living, the cost of doing business will go up. Inefficiency will set in because more time would be needed. Files would be lost."

The 'grave concerns'

Low cited the following examples that had given rise to the "grave concern" about the state of affairs in Malaysia:

- the lack of action taken against parties implicated in the tampering of the appointment of judges, as exemplified in the Royal Commission /VK Lingam tapes scandal

- the Port Klang Free Zone fiasco, where costs had dramatically risen from an estimated RM1.1bil to RM4.7bil, and may balloon further to RM12.5bil.

- political crossings in the Perak state government, which led to the capitulation of control by Opposition parties

- investigations by the newly formed Malaysian Anti-Corruption Commission (MACC) that appear to focus on 'small fish' and Opposition politicians

- the lack of action that has been taken despite the Auditor-General's annual report which highlighted extraordinary public procurement abuses.

Neither here nor there

According to TI, the 2009 CPI drew on 13 different polls and surveys from 10 independent institutions.

"For a long time, we've straddled at 5 points, which is neither here nor there.

“We should be moving up to 6 or 7. I believe one of the reasons for the low score is that people are now less tolerant of corruption.

“Maybe they (the corrupted) could get away with this eight years ago, but not with today's younger people who are Internet savvy,” said Low.

He added: “This index downtrend could reflect a much broader disappointment among the
public and could be a 'tsunami' effect from the previous government.”

Low said, however, that there are positive signs exhibited by the administration of Prime Minister Najib Abdul Razak.

For instance, he said, the PKFZ fiasco is being actively and vigorously investigated; police reports have been made and suits have been taken against certain parties and corrective measures have been taken.

The positive side

He commended Najib for having formed a task force to make recommendations for action to be taken on the Auditor-General's report but stressed enforcement agencies must remain independent.

"One of the areas we need to deal with is to make sure the institution is independent of the executive.

“We need to do that. Without the institution becoming independent, people would not dare to bring their cases up.

“If this institution is not independent, if people think they can get away with corruption, people will do it,” said Low

MM
18/11/09

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