Cosy government-private sector ties in Malaysia breed corruption

Close ties between government and private sectors in this country have often led to various allegations of political patronage and funding.

Merely a confirmation of what has been happening for decades, the Transparency International global corruption report examining corruption in the private sector released two days ago states the facts of reality in this country.

"Business continues to play a very exposed role as the supplier of corrupt payments to civil servants, members of government and political parties.

"Nearly two in five polled business executives have been asked to pay a bribe when dealing with public institutions. Half estimated, that corruption raised project costs by at least 10 percent.

"One in five claimed to have lost businesses because of bribes by a competitor. More than a third felt that corruption is getting worse", stated the report.

ASLI Centre for Public Policy Studies chairman Ramon Navaratnam (left) said that the cosy relationship between the government and private sector has been going on for years since former Prime Minister Mahathir Mohamad spearheaded the Malaysia Incorporated Policy in 1983.
Open to abuse

He said that the policy, which is to enhance co-operation between the two sectors, is open to abuse and hoped for a "new Malaysia Incorporated" to fight corruption.

"Instead of national good and interest, many co-operated for their own personal gains. This policy has been abused for private benefits", he said.

Calling on those at the top to lead by example, he also expressed disappointment that the government has yet to make it compulsory for all parties to make public their assets and liabilities.

"People down the line will follow out of example and fear. It would be a push for agencies such as the police and MACC to do a better job", he said.

He also urged the government to fight corruption in a comprehensive manner without fear or favour and have the courage to haul up those in power as well.

"Corruption cannot be fought in a piecemeal or adhoc manner. In China, for example, those found guilty of corruption are put to death.

Easier to catch an 'ikan bilis'

"It is harder to catch a shark as compared to an 'ikan bilis'. Sharks are difficult as they are smarter and faster. We, too, have to match up to their skills and abilities.

"If we settle only for the small fishes, expect corruption to go up", he said.

While recognising that modern political parties need the funding, political analyst Khoo Kay Peng (right) said that political parties have to be accounted for the money they raise.

"To survive, parties need the funding and we cannot deny them their rights to raise funds", he said.

Expressing concern about the thin line that separates the government and ruling party, Khoo said that this opens the door for misallocation and abuse of funds.

"It is very wrong of the government to tap into public funds. For instance, announcing public funded projects in every by-election", he said.

Importance of check and balance

He cited the example of how member of parliament-cum-tycoon Tiong King Sing (left) claimed that MCA president Ong Tee Keat had allegedly sought RM10 million from him last year and also used private jets owned by one of his companies.

"There is no donation without terms attached and such terms remain unspoken. It entices politicians", he said.

Stressing that there should be stricter controls and discipline in political funding, Khoo suggest that the government introduce a mechanism to limit the number and amount of funding each year.

"Check and balance is important although there is a pressing need for each party to look into their financial management.

"In the United States, it is an offence not to reveal the source of any funding. Our government should introduce that legislation here", he said.

MK
26/09/09

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