Enhancing International Cooperation Against Corruption Malaysia Experience ICAC

Enhancing International Cooperation Against Corruption: Malaysia Experience ICAC SYMPOSIUM HONG KONG 10 MAY 2012 Dato’ Sri Abu Kassim Mohamed Chief Commissioner Malaysian Anti-Corruption Commission 1

What does International Cooperation entails? Extradition –Article 44 Transfer of sentenced Persons-Article 45 Mutual Legal Assistance-Article 46 Transfer of criminal proceedings-Article 47 Law Enforcement cooperation-Article 48 Joint Investigation –Article 49 Special Investigative techniques-Article 50 UNCAC Chapter IV Articles 43 -50 2

Transnational Bribery Investigated before 2002: RMAF-Northrop Corporation Case (1971 -1974) USD 177, 473 (1/3 of commission) solicited by Group Captain (then Wing Commander) of RMAF for purchase of sixteen(16) F-5 Fighter Jets at USD 39 Million. 3

Transaction of Bribe in the RMAF-Northrop Case Bribe solicited by accused through Northrop agent in Malaysia Northrop Corporation US Swiss Bank Zurich Chase Manhattan Bank Singapore Accused – paid in Cash USD 58, 350. 00 4

PUNB US$5 Billion BOND SCANDAL PUNB (Perbadanan Usahawan Nasional Berhad or National Entrepreneur Corporation Ltd) –Issuance of US $5 billion of Corporate Bond by its former CEO for purpose of investment in the British Virgin Islands by an a Londonbased investment consultant without the approval of the Board. Assistance to obtain evidence in London was accorded by the London Metropolitan Police Service in 2001. Three key witnesses were located in London and had their statements taken by the MACC (then ACA) at the Malaysian Embassy. No MLA instrumentalities were involved throughout the investigation until the suspect was charged. 5

LAW ENFORCEMENT COOPERATION (INFORMAL) PUNB Corporate Bond Scandal Collaboration Country/Agency(s): London Metropolitan Police Service, United Kingdom Offence: The signing of “Consultancy Agreement” with an offshore company and the issue of a bond certificate for securing financial resources without approval of the Board. Assistance Needed: To take the testimony of British witnesses Result(s): British witnesses were identified and information was successfully obtained Status of Case: Accused were charged in Kuala Lumpur Session Court, Malaysia Value of Gratification: USD 5 billion worth of bond Time taken to fulfil request by MACC WITHIN TWO WEEKS LONDON POICE AFTER CONTACTING THE 6

Transnational Bribery Investigated before and after 2002 Perwaja RM 76. 4 million Scandal CEO of Perwaja Steel Mill was charged for Criminal Breach of Trust ¥ 2, 981, 580, 000 or RM 76. 4 million between 1994 and 1995 allegedly as “fee” for technical assistance rendered by a Japanese company known as NKK Corporation in relation to the erection and construction of a “Beam and Section mill Plant Project” in Malaysia. 7

Perwaja Case: Money Trail Malaysia ¥ 2, 891, 580, 000 Paid supposedly as fee for technical assistance to NKK Corp on 18 Feb 94 Hong Kong (Frilsham Enterprise)¥ 2, 890, 130, 210 (after deduction of bank charges) on 25 Feb 94) Money withdrawn and remitted to Geneva in 3 Bank Accounts: ¥ 2, 486, 260, 00 (Calyon Corp). 1 March 94) + ¥ 143, 680, 210 (A/C of Yuji Maeda)+¥ 260, 190, 000 ( Waterfront/Borneo Enterprise) Zurich ¥ 2, 294, 600, 000 (7 -8 March 94) Sitar Investment Ltd & Lotus Development Inc. Foreign Bank in Singapore (A/C of family member) 8

MUTUAL LEGAL ASSISTANCE IN THE PERWAJA CASE Collaboration Country/Agency(s): Ministry of Justice, Japan; Federal Office of Justice, Switzerland Independent Commission Against Corruption (ICAC), Hong Kong Offence: Accused committed breach of trust upon a property owned by Perwaja Rolling Mill & Development Sdn Bhd Assistance Needed: To obtain documents and evidence of several key witnesses in Japan, Switzerland Hong Kong Result(s): Documents and evidence of witnesses involved in Japan, Switzerland Hong Kong were successfully obtained Status of Case: Accused was charged in Session Court, Kuala Lumpur, Malaysia Value of Gratification: USD 24, 724, 920 million 9

FORMAL (MLAR) VS INFORMAL (INTER-AGENCY) REQUEST Requesting Anti-Corruption Agency. Requesting Foreign Anti-Corruption Agency AG Chamber Office. Foreign Ministry. (Sender) Instruction given to relevant enforcement agency /court Request has been fulfilled Foreign Ministry of Justice/AG Chamber. Approx 10 mth Foreign Ministry of Justice/AG Chamber. Requested Foreign Anti Corruption Agency Fulfillment of request made Approx 2 weeks– 3 mth Foreign Ministry (Receiver). Foreign Ministry. (Sender) AG Chamber Office. (sender) Requesting Anti-Corruption Agency. Requesting Foreign Anti-Corruption Agency 10

SUMMONS AND WARRANTS ACT 1971 Extradition Arrangements for Malaysia, Singapore and Brunei. CASE 1 Collaboration Country/Agency(s): Corrupt Practices Singapore Investigation Bureau (CPIB), Offence: Accused was caught for offering bribe to the Head of Immigration on duty at Singapore's Tuas Checkpoint Assistance Needed: To arrest accused and issue Arrest Warrant which was issued by the Singapore Magistrate Court Result(s): Accused was officially handed in by the representative of MACC to the CPIB Singapore Officers Status of Case: Accused pleaded guilty to both counts Time Taken to fulfil request by CPIB Two Weeks 11

SUMMONS AND WARRANTS ACT 1971 Extradition Arrangements for Malaysia, Singapore and Brunei. CASE 2 Collaboration Country/Agency(s): Corrupt Practices Singapore Investigation Bureau (CPIB), Offence: Accused (a former Singapore Customs officer) had been involved in accepting bribe. Assistance Needed: To arrest accused and issue Arrest Warrant which was issued by the Singapore Magistrate Court. Result(s): Accused was detected to be working in a chemical company in Johor Bahru. He was arrested and officially handed in by the representative of MACC to the CPIB Singapore Officers Status of Case: Accused was charged for corruption offences Time Taken to fulfil request by CPIB One Month 12

SUMMONS AND WARRANTS ACT 1971 Extradition Arrangements for Malaysia, Singapore and Brunei. CASE 3 Collaboration Country/Agency(s): Anti-Corruption Bureau Brunei Darussalam (BMR) Offence: Accused was involved in several corrupt practices for several contracts amounting to B$8 million Assistance Needed: To detect and arrest accused with Arrest Warrant which was issued by Brunei Magistrate Court. Result(s): Accused was detected in the City Centre of Kuching, Sarawak. He was arrested and officially handed in by the representative of MACC to the BMR Officers Status of Case: Accused was charged for corruption offences Time Taken to fulfil request by ACB Brunei One Week 13

MUTUAL LEGAL ASSISTANCE ON INVESTIGATION BY MACMA BRANCH FOR THE YEAR 2010 The MLA requests below pertain only to investigation of corruption offences unless indicated with (*) No. MLA Non- MLA & Non- MLA Requesting State Requested State 1. - √ - MACC (MACC HQ) SINGAPORE ( CPIB SINGAPORE ) 2. - √ - CPIB SINGAPORE MALAYSIA 3. - √ - MACC (MACC HQ) NEW ZEALAND ( INTERPOL ) 4. - √ - CPIB SINGAPORE MALAYSIA 5. - √ - MACC (MACC State) 6. - √ - MACC (MACC State) BRUNEI ( ACB BRUNEI ) 7. - √ - ACB Brunei MALAYSIA 8. - - √ MACC (MACC HQ) HONG KONG & CHINA 9. - √ - CPIB SINGAPORE MALAYSIA 10. - √ - CPIB SINGAPORE MALAYSIA THAILAND ( National Anti Corruption Commission & Consulate Office Songkhla ) 14

11. - √ - CPIB SINGAPORE MALAYSIA 12. - √ - CPIB SINGAPORE MALAYSIA 13. - - √ MACC (MACC HQ) SINGAPORE 14. - √ - MACC (MACC HQ) SINGAPORE 15. - √ - MACC (MACC State) BRUNEI ( ACB BRUNEI ) 16. - √ - MACC (MACC HQ) SINGAPORE ( CPIB SINGAPORE ) 17. - √ - MACC (MACC State) 18. √ - - MACC (MACC HQ) UAE ( Dubai ) 19. - √ - MACC (MACC HQ) INDIA ( New Delhi ) 20. - √ - ACB Brunei MALAYSIA 21. - √ - CPIB SINGAPORE MALAYSIA *22. √ - - MACC (MACC HQ) SINGAPORE & AUSTRALIA THAILAND ( National Anti Corruption Commission & Consulate Office Songkhla ) *Note MLA Request pertaining to Anti-Money Laundering Offences 15

Mutual Legal Assistance and Non Mutual Legal Assistance CASE 1 Collaboration Independent Commission Against Corruption Country/Agency(s (ICAC), Hong Kong ): Offence: Fraud Assistance Needed: To record statements of two Malaysian Government Officers to verify some official documents in Feb. 2012 Result(s): Statements officers Status of Case: Accused was charged in the HK Court on 28 March 2012 Time taken to fulfil MLA Request by ICAC Less than two months of two Malaysian Government 16

Non Mutual Legal Assistance CASE 2 Collaboration Country/Agency(s): Corruption Eradication Commission (CEC), Indonesia or KPK Offence: To trace a witness in Indonesia to attend a trial in Malaysia Result(s): The witness managed to be traced in a remote village called Ponorogo, Jakarta. KPK assisted to transport the witness to Malaysia Status of Case: The accused was found guilty for 2 charges of corruption and sentenced tow 12 months imprisonment and fined RM 10, 000 for each charge. Time Take to fulfil request made by MACC TWO WEEKS 17

Joint Investigation Teams To carry out operations (surveillance, sting operations, investigationgathering of evidence and arrest. ) 18

JOINT INVESTIGATIONS AND SPECIAL INVESTIGATIVE TECHNIQUES Collaboration Anti-Corruption Country/Agency(s): Darussalam Bureau, Brunei Offence: One syndicate using Malaysian registered vehicles involving smuggling of diesel to Sarawak, Malaysia Assistance Needed: Undercover Operation to obtain evidence Result(s): Information were obtained including names and activities of Custom Officers involved Status of Case: 3 arrests were made 19

JOINT INVESTIGATIONS AND SPECIAL INVESTIGATIVE TECHNIQUES Collaboration Country/Agency(s): Anti-Corruption Bureau, Brunei Darussalam Offence: Between 40 to 50 registered 4 WD vehicles were involved in smuggling diesel almost daily from Kuala Belait, Brunei Darussalam to Miri, Malaysia Assistance Needed: To obtain information pertaining to records of 4 WD vehicles Result(s): Information were obtained including names and activities of Custom Officers involved. Status of Case: 42 arrests were made Accused/Value of Gratification: Variation of amounts 20

Joint Investigation: MACC and Australian Federal Police • L Polymer Note Printing Contract involving Malaysian Central Bank and Note Printing Australia ( A subsidiary of Australian Reserve Bank) in 2009 • In 2010 MACC has initiated a Joint Investigation with Australian Federal Police (AFP) • AFP officer being attached with MACC to work on the case and gather intelligence information • The focus of Joint Investigation is to assist investigation as well as preparation of Mutual Legal Assistance request to be submitted at later stage • Finally MACC has charged an agent as well as former senior officer of Malaysian Central Bank under Anti Corruption Act 1997 • AFP on the other hand managed to charge 7 senior officers of Securency and Note Printing Autralia as well as the companies themselves under Bribery of Foreign Public Officer offence.

Capacity and Capability Building Experts from State parties – to be invited to share knowledge and skills; Exchange programmes-Officers of anticorruption bodies to be given opportunities for training/attachment of other State parties; Sharing of Best practices 22

The Role of MACA, as our commitment to the international community in combating corruption, has conducted several international courses based on Investigation, Prosecution, Intelligence, and Prevention techniques and skills. Types MACA International courses : 1. Scheduled Courses conducted on a yearly basis 2. Tailored Courses –conducted upon request by other international/regional anti-corruption agencies (E. g. Government Inspectorate of Vietnam; Kazakhstan; Independent Commission Against Corruption Fiji; High Office on Anti-Corruption Afghanistan; Bhutan Anti-Corruption Commission Officers 23

MACA-EUPOL AFGHANISTAN Management and Prosecution Training 13 - 22 February 2012 24

MACA-EUPOL AFGHANISTAN Management and Prosecution Training 13 - 22 February 2012 25

MACA - BHUTAN ANTI-CORRUPTION COMMISSION Basic Training 16 May – 3 June 2011 26

MACA - BHUTAN ANTI-CORRUPTION COMMISSION Basic Training 16 May – 3 June 2011 27

MACA – FICAC FIJI (2010) 28

FUTURE COLLABORATION Collaboration WORLDWIDE Offence: Human Trafficking Assistance Needed: To obtain trafficking The Link: Studies have shown that there is a link between corruption and human trafficking. In eradicating corruption, we may also eradicate human trafficking. This can only be done if there is International Cooperation. information pertaining to human International Cooperation depends on the political will of governments. 29

Edmund Burke in 1770 wrote in “Thoughts on the Cause of the Present Discontents” that “when bad men combine, the good must associate; else they will fall, one by one, an unpitied sacrifice in a contemptible struggle” This attribute to the statement that “The only thing necessary for the triumph of evil is for good men to do nothing”

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