It is no longer the case that top management can turn a blind eye to corruption, and get away with it. With the introduction of section 17A into the Malaysian Anti-Corruption Commission Act 2009, senior officers of the company are now at risk of being exposed to criminal liability on account of corrupt acts committed by its employees or even third parties who are associated to the company, such as agents.
There is however a defence available to the senior officers – the defence of Adequate Procedures, wherein it must be shown that certain steps have been taken by the company to prevent corruption. These may include inter alia getting legal advice on section 17A, enforcing internal anti-corruption SOPs, conducting anti-corruption training, creating reporting avenues and effectively communicating anti-corruption policies to all members of the company.
Clearly, a company cannot possibly control each and every person it is associated with. But it certainly can and must put in place measures so that it may successfully defend itself if an associated person does go rogue.
