WHAT do corruption and the COVID-19 pandemic have in common? Both have the ability to inflict deep and harmful impacts on a country’s immediate and future development. The pandemic can have a detrimental toll on a country’s healthcare infrastructure and the well-being of its citizens, impacting its ability to grow and develop its human capital. Similarly, corruption can affect a country’s economic, political and social sphere, affecting its reputation and eroding trust both internally and globally.
Many international organisations have reported on how this pandemic is being used to further erode good governance and integrity. The Organized Crime and Corruption Reporting Project (OCCRP) has stated that some political leaders have taken advantage of the pandemic to further consolidate their power, impose more restrictions on already limited access to information, eliminate transparency requirements from public procurement and avoid public accountability mechanisms.
The United Nations Development Programme (UNDP) reported that the procurement of medical supplies is one of the most vulnerable areas for corruption and fraud. Corrupt actors are capitalising on the emergency mechanisms in place and the global shortages in the supply chain to provide essential goods and services at grossly inflated prices.
The Organisation for Economic Co-operation and Development (OECD) is concerned that the outbreak of COVID-19 will create opportunities for abuses, especially in public procurement and the distribution of economic stimulus packages. Given the vast allocations involved, this can result in substantial leakages that seriously compromise the effectiveness of the packages.
Transparency International (TI) highlighted that corruption often thrives during times of crisis, particularly when institutions and oversight are weak and public trust is low. We have seen it occur during past global health emergencies such as the Ebola virus and Swine flu, where unscrupulous persons had profited from the misfortune of others.
A study by the Association of Certified Fraud Examiners (ACFE) has shown that the instances of fraud generally increase during a recession. In this pandemic, emergencies and subsequent rapid responses create opportunities for integrity violations, most notably fraud and corruption.
Like many other countries, Malaysia has announced large fiscal initiatives to address pressing issues such as meeting our urgent healthcare needs, boosting social-welfare programmes and rising unemployment. To date, the government has unveiled eight economic packages worth a cumulative RM530 billion to support the rakyat during these times of economic uncertainty.
It is vital that every ringgit the government spends is monitored closely to ensure that the objectives of assisting the rakyat and businesses are achieved. Following are some actions that the Malaysian government can take in practicing transparency in its COVID-19 response and recovery effort.
1. Build an effective framework to facilitate data openness and access
Data openness and access is critical to better governance and integrity in the nation’s COVID-19 response. Data should be made available to all stakeholders, including the media, independent think thanks and the public, so that everyone is well informed.
Conduct regular briefings to update the public, and have informed medical professionals to answer questions at these briefings. Importantly, respond to any misinformation or false reporting immediately, and acknowledge shortcomings and be truthful with the public.
2. Address immediate risks in the emergency public procurement process
Transparency is even more crucial during an emergency. Any compromise involving rules and regulations can lead to abuse of the public procurement process and result in higher risk of conflict of interest, embezzlement, tender manipulation and failure to deliver vital medical supplies.
Procurement contracts should be awarded to companies that have a proven track record. The purchase of vaccines is a business and the government needs to conduct due diligence so that contracts are awarded to the right companies and not rent seekers who use their “know who” skills instead of “know how”.
Guidelines on emergency procurement of vaccines with clear “check and balance” mechanisms should be developed as a short-term solution. In the long term, legislation can be enacted to create an ethical framework for decision-making in times of an emergency.
3. Mechanisms for effective implementation, compliance and review
Regular audit and governance oversight must be conducted to reduce the risk of fraud and corrupt practice occurring, with its results and recommendations acted upon and reported publicly. Where possible, these audits should be conducted mid-stream or during the implementation of a project to detect potential integrity red flags and circumvent any possible occurrence of fraud or corruption.
Creating a specialised oversight body would go a long way to achieving greater transparency. The US government has a specific oversight body – an epidemic response accountability committee – to oversee all government spending.
4. Safeguarding fairness in the enforcement of public integrity standards
Enforce rules and fines diligently and fairly to all. Remove discretionary powers from individuals in enforcement agencies.
Above all, do not give preferential treatment to selected persons based on their position or standing. By right, they should be subject to the maximum penalties allowed under the law for their failure to be role models and set a good example.
5. Fostering a culture of integrity in leadership
Have a clear plan and stick to it. There must be a single strategic line of command that everyone understands and abides by. Practice a culture of integrity – keep to your word; act with sincerity; strive for consistency; and don't make promises that you know you can't keep.
By doing so, our leaders can show a functional, unified team that is well coordinated and works for each other to achieve the overall goal.
In many ways this pandemic is an unanticipated opportunity for the government to rectify existing weaknesses and reform the inherent system. Address leakages, obtain value for money from public procurement, remove rent seekers, reduce red-tape and unnecessary processes and ensure the rakyat’s money is used in a transparent and accountable manner.
It is hoped that when the pandemic is finally brought under control and the general situation has improved, some positive results will be realised in our fight against corruption.
* Datuk Seri Akhbar Satar is the President of the Association of Certified Fraud Examiners (ACFE)-Malaysian Chapter
** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.
Datuk Seri Akhbar Satar
Tue Aug 03 2021
It is vital that every ringgit the government spends is monitored closely to ensure that the objectives of assisting the rakyat and businesses are achieved. - Filepix
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.