Kota Kinabalu: Efforts to reform the public service must go beyond enforcement and involve consistent governance and accountability at all levels, said Sabah Malaysian Anti-Corruption Commission (MACC) Director Datuk S. Karunanithy.
He was speaking during a session on Intergrity in Governance at Sabah International Convention Centre (SICC), Wednesday, where he addressed ongoing issues related to procurement, project execution and administrative oversight.
“Leadership influences whether corruption is tolerated or addressed. If a department head is clear about rejecting it, most issues can be prevented,” he said.
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A 2023 national survey conducted by USIM found that procurement and enforcement were among the most vulnerable sectors.
“Weak internal controls, procedural shortcomings and a lack of monitoring were contributing factors,” he said.
He also referred to the Rumah Mesra Sabah Maju Jaya (SMJ) housing programme, which was intended to assist low-income families. Investigations found that while the policy was sound, its implementation fell short.
“There were homes left unoccupied after completion, some built below standard, and questions were raised about how recipients were selected,” he said.
MACC also investigated the falsification of state sales tax declarations in the palm oil sector, which caused the Sabah Government to lose nearly RM64 million. One individual has been charged.
Rather than taking broad legal action against companies involved, MACC worked with the State Finance Ministry to recover the revenue through administrative penalties.
“We looked at the impact on the sector and focused on recovering what was lost,” Karunanithy said.
On procurement, he said investigations uncovered the use of fake documents, forged certifications and multiple bids submitted under different company names but showing signs of being coordinated.
“There’s no law preventing someone from owning several companies, but if that structure is used to manipulate contract awards or hide corrupt practices, it becomes a criminal matter,” he said.
He cited a case in which multiple companies involved in a tender used the same bank account, indicating they were controlled by the same person.
Karunanithy also referred to the 2016 Ops Water case, in which senior state officials were investigated and over RM200 million in cash and assets were seized.
“The case was still relevant as it reflected long-standing institutional weaknesses,” he added.
He also emphasised that steps had since been taken to improve governance structures, including the implementation of Prime Minister’s Directive No. 1/2023, which requires government ministries and agencies to establish governance committees to strengthen internal processes and oversight.
Karunanithy also spoke on MACC’s integrity recognition programme, which rewards public servants who report bribery attempts. As of December 2023, over RM1 million in rewards had been issued, including RM54,000 in Sabah.
Under Section 25 of the MACC Act, public officers are legally required to report attempted bribery, even if no money is accepted.
“Some assume bribery only involves the person receiving money, but the act of offering it is also a crime. We are taking action against both parties,” he said.
He warned that inadequate oversight could result in substantial financial losses. With Sabah’s 2025 development allocation set at RM6.42 billion, a 10 per cent leakage would amount to RM642 million.
“That’s enough to affect key public projects. This isn’t hypothetical, it reflects what can happen without proper controls,” he said.
He are urging departments and agencies to focus on internal accountability and to treat governance not as an external requirement but as part of everyday operations.
“Integrity should not be limited to policy statements. It must be reflected in how public servants carry out their duties,” he said.