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Global anti-corruption watchdog ranks Malaysia 47th least corrupt, praises Penang

By Lee Wei Lian

GEORGE TOWN, Sept 24 – Global corruption watchdog, Transparency International (TI), has ranked Malaysia as the 47th least corrupt nation in the world and commended the island state of Penang for its anti-corruption efforts.

Denmark, New Zealand and Sweden was listed by TI as the top three least corrupt countries as measured by the Corruption Perceptions Index (CPI), which ranks countries in terms of the degree to which businessmen and country analysts perceive corruption to exist among public officials and politicians.

Singapore, Finland, Switzerland, Iceland, Netherlands, Australia and Canada rounded off the top least corrupt countries.

Malaysia came in 47th out of 180 countries in the index, tied with Hungary and Jordan.

The CPI is part of TI’s Global Corruption Report (GCR) 2009 released yesterday.

In its report on Malaysia, TI highlighted the Malaysian practice of the “revolving door” whereby individuals move from government to business, or business to politics, and back again, and estimated that corruption could cost Malaysia as much as RM10 billion a year.

“Significant government participation in the private sector and considerable business participation in politics means that the movement of gatekeepers to players and players to gatekeepers has a negative influence on the concept of checks and balances,” said TI.

“The complexity of the relationships between politics and the public and private sectors means that corruption may take place with impunity. Until drastic action is taken to separate the cosy relationship between government, business and politics, the anti-corruption effort will remain no more than a token gesture,” said TI.
Penang chief minister Lim Guan Eng says he is “humbled” by the recognition by TI and added that he was concerned over the fact that that corruption could cost Malaysia as much as RM10 billion a year – an amount equivalent to 1 or 2 per cent of GDP as pointed out by the GCR when it cited the findings of the special government business facilitation task force Pemudah and the World Bank.

Additional report contents that were of concern to Lim was Malaysia’s per capita spending of only RM5 on anti-corruption efforts and the fact that only about 10 per cent, or just 7,223 potential corruption cases, of the total 71,558 reported between 2000 and 2006 were investigated by the Anti Corruption Agency, the precursor of the Malaysian Anti-Corruption Commission, with a conviction rate of less than one percent.

“The GCR 2009 concluded that this illustration of the Malaysian government’s inaction in the light of the serious corruption allegations, along with its seeming inability to catch the big fish instead focusing on the ‘small fry’, suggests that what anti-corruption efforts exist are mere tokens,” said Lim.

“RM 10 billion in losses from corruption per year is a huge sum and there must be greater commitment from the Federal government towards fighting corruption to ensure that 27 million Malaysians can benefit from this RM 10 billion dividend from successfully combating corruption.”

Lim also today announced that the state has managed to cut about RM36 million or 12 per cent of in operating expenditure this year due to its efforts to curb corruption.

“Transparency International’s recognition of anti-corruption efforts by the Penang state government through CAT (Competency Accountability And Transparency) governance is backed up by savings of nearly 12 per cent of the 2008 Penang state budget of RM 36 million from operating expenditure. This RM 36 million savings has allowed the state government to carry out social programs and implement its people-oriented government,” said Lim.

TI said that the Penang state is the first Malaysian state government to implement the open tender system for government procurement and contracts.
It also recognised the state government’s directive barring administrators and state executive councillors from making any new land applications and efforts to attract professionals to serve on various boards, such as the Penang State Appeals Board.

“On behalf of the Penang state government, we feel humbled by the recognition given by a world renowned body such as Transparency International and would redouble efforts to ensure the anti-corruption reforms are institutionalized and ensure more professionals are appointed to key bodies. Fighting corruption generates savings for the people,” said Lim.

He added that the two local authorities in Penang are expected to save another RM34 million over three years from a “transparent” negotiation over the price of solid waste disposal that reduced the rates agreed to by the previous Barisan Nasional administration by a further 42.4 per cent.

Lim said that the savings would go towards the state government’s “3E” programme to “enable” the people with skills and knowledge so that they have an equal opportunity to create wealth, “empower” them with fundamental rights and basic freedoms, and “enrich” the people by sharing wealth and economic benefits.