GANASON PERIATHAMBY

CHIEF SENIOR ASSISTANT COMMISSIONER

CEO ANTI-CORRUPTION MANAGEMENT CENTRE

Malaysian Anti-Corruption Academy (MACA)

PERSONAL INFORMATION

Name : P.Ganason a/l S.Periathamby

Nationality : Malaysian citizen

Date of Birth : 22 September 1959

Place of Birth : Kuala Lipis, Pahang, Malaysia

Age : 58

Marital Status : Married

Num. of Children : 4

Address : Malaysia Anti-Corruption Academy,

Persiaran Tuanku Syed Sirajuddin,

Off Jalan Tunku Abdul Halim,

50480 Kuala Lumpur

Telephone : +603 62092891 (Office)

+60196000704 (Mobile)

Email : ganason1959@yahoo.com ; ganason@sprm.gov.my

Fax : +603 62016782

Employer : Malaysian Anti-Corruption Commission

WORK EXPERIENCE (INTERNAL)

1. 25 years investigations and prosecutions in corruption and white – collar crimes (MACC) within the ambit of the Prevention of Corruption Act, 2009 and the Penal Code (Act 575)

2. Superintendent ACA Pahang State (1992 – 1995)

3. MACC Perlis State Director (2008-2009)

4. MACC Pahang Deputy Director (2009-2010)

5. Deputy Director Of Inspection and Consultancy Division, Public and Private Sector Putrajaya. (6 years) . Job Scope: giving advise, inspections and consultancy services to the public and private sectors to close and cover the possible loopholes for corruption, abuse of power and malpractices within the public and private sectors. (2010- Mac 2016)

6. MACC Terengganu State Director (2016 - 2017)

7. Current position : CEO Anti-Corruption Management Centre(Jun 2017)

WORK EXPERIENCE (EXTERNAL)

I. Corruption Prevention to external participants of the Certified Integrity Course at the

Malaysian Anti-Corruption Academy (2011-2014). Among the participants were from

Bhutan, Nepal, Myanmar, Vietnam, China, Philippines, Brunei, Indonesia, Timur-Timur,

Singapore, Maldives, Fiji, Egypt, Afghanistan, India, Bangladesh, Sri Lanka, Kampuchea,

Thailand, Nigeria, Zambia, Uganda, South Africa, Botswana, Liberia, Ethiopia, Azerbaijan,

Kazakhstan, Yemen, Seychelles

II. Visiting lecturer to the Fiji Independent Commission Against Corruption (2013) on

prevention of corruption

EDUCATION

1. B.A (Honours) (1984) at National University Of Malaysia, Bangi, Selangor.

2. M.A (Anti-Corruption Studies) (2014) at IACA, Vienna, United Nations

Office On Drugs and Crime (UNODC)

3. Membership : Institute Counter-Fraud Specialist (U.K) 2013.

4. International Anti-Corruption Resource Group, partner , Vienna :

www.iacrg.org )2015

5. Anti- Corruption and Compliance Specialist (UNODC)2014

LANGUAGES

English, Malay, Tamil, Cantonese (Spoken)

English, Malay (Written)

“IMPLEMEMNTING ANTI-

BRIBERY MANAGEMENT

SYSTEMS”: The Way ForwardDATE : 12 JULY 2017

TIME : 9.45AM – 10.15AM

VENUE : AUDITORIUM DATO’ YAHAYA, COMPLEX SIRIM, SHAH ALAM

MICROSOFT &

WAL-MART

“How to”

INTERNATIONAL STANDARDS

US FCPA, 1977 (Watergate Scandal), Northrop, Lockheed

UK Bribery Act 2010, (BAE ) intermediary/agent

“Public Procurement”(Government)

“Private Sector”(MNC’s)

SME’s start-ups the sooner the better

ABMS-why? It states anti-bribery but it can be equally applied to all types of corruption as defined in a local circumstances. ”Only” bribery was chosen as there is an universal understanding what bribery is. To define corruption would have limited the application as we would have never been able to address all forms of corruption globally

ISO 37001 ANTI-

BRIBERY CERTIFICATION

“Thou shall not”

ISO 37001 : 2016

Compliance programme and anti bribery management system certifiable

“Common language of quality”: Pioneer signatories

Eni S.P.A (O&G) Italy 2017

Alstom(Telecommunication) France 2017

Singapore, Philippines, Peru

Malaysian standards was very

active and present

Dr. Barbara Nieger

Austrian Standard

17th June 2017

Corruption in a cross-border problem and demands a common language to solve it. Act ISO 37001:2016.

…is a free partisan-management tool considered suitable for any organisation (Public or private)

ALL ELEMENTS of the ABMS(sections 4-10)of the standard shall be considered but the extent depends on the individual situation of the organisation.

Microsoft and other American multinationals( Walmart )are adapting 37001-will go the same path as ISO9001 for quality.

Regime of Compliance(Third world) to Regime of Integrity(First World) to NIRVANA.

If mankind is made up of angels, there will be no need for governments(Madisson, James)

Founding Father of the American Constitution

Control Risk 2017

International Business Attitudes to Compliance says:

“Global Compliance Policy applies worldwide, without any local

exceptions.” (55%)

“gift giving”(40%)

“Permitted interaction with government employees or agents “(30%)

“use of facilitation payments.”(20%)

Active and passive bribery

Active bribery refers to the offence committed by the person who promises or gives the bribe; ascontrasted to 'passive bribery', which is the offence committed by the official who receives thebribe. Active bribery occurs on the supply side, passive bribery on the demand side(UNCAC)

In legal lingo (according to the Council of Europe's Criminal Law Convention on Corruption, forinstance), active bribery of public officials is defined as the " the promising, offering or giving byany person, directly or indirectly, of any undue advantage ... for himself or herself or for anyoneelse, for him or her to act or refrain from acting in the exercise of his or her functions". Similarly,passive bribery is "the request or receipt..., directly or indirectly, of any undue advantage, forhimself or herself or for anyone else, or the acceptance of an offer or a promise of such anadvantage, to act or refrain from acting in the exercise of his or her functions".

It is important to note that "active bribery" does not always mean that the briber has taken theinitiative. In fact, often the reverse is true. The individual who receives the bribe often demanded itin the first place. In a sense, then, he or she is the more "active" party in the transaction.

Section 16 & 17 MACC Act, 2009 (bribery), 18(malpractices), 23(abuse of power),Penal Code,

Baksheesh

Baksheesh [backsheesh, bakshis] is an Arabic term for a relatively small amount of

money given to a beggar or for services rendered (as to a waiter): alms, tips, gratuity,

pourboire. Where the amount of baksheesh is inflated or demands for it are illegitimate,

baksheesh is synonymous with bribe or grease money.

Other terminologies

Duit kopi(Malaysia)

Air Supply(Australia)

Bribery

Bribery is the act of offering someone money, services or other valuables, in order topersuade him or her to do something in return. Bribery is corruption by definition. Bribesare also called kickbacks, baksheesh, payola, hush money, sweetener, protectionmoney, boodle, gratuity etc. Bribery is widely criminalized through international andnational laws. In particular, the bribing of foreign officials is outlawed by the OECDConvention on Combating Bribery of Foreign Public Officials.

In Malaysia, sections 16 and 17 of MACC Act 2009 refers to “Offence of acceptinggratification” and “Offence of giving or accepting gratification by agent” respectively.

Gratification means money, donation, loan, fee, reward, valuable security,property(movable or immovable) financial benefit, or any other similar advantage.

Bribery in definition is corruption. Penal Code, Customs Act

Bureaucratic corruption (see petty corruption)

Bureaucratic, administrative or "petty" corruption takes place at the implementation

end of politics, where the public meets public officials. Bureaucratic corruption is

usually distinguished from "grand" and political corruption (to the extent it is possible to

distinguish administration from politics). Bureaucratic corruption usually involves smaller

amounts of money, but the damage may be significant, in monetary and political

terms, if it is happening in a systemic manner.

Organized Crime

Syndicated Crime

Klitgaard, R (1989) “When I see corruption, I know it”

Customer due diligence

Obligation for financial institutions to implement processes for the identification of

those customers on whose behalf they maintain or operate accounts or conduct

transactions.

Rose-Ackerman, Susan( Corruption: Greed, Culture and the State :2010)

Automation, job rotation, four-eyes principal- anti-bribery tools)

“International Business Attitudes to Corruption-Survey 2006”- corporations

occasionally, regularly, or nearly always…circumvent laws on transnational bribery

by using intermediaries.(Bribes through intermediaries)

Extortion

use of force or threat. Extortive Bribery

Why is integrity so difficult to promote and corruption so difficult to curb?

Galtung, F (President Integrity Action, UK) 2013

Meme/Gene

Mutates

Evolves

Graft

Graft (verb) is to obtain money dishonestly by exploiting one's position of power, especiallypolitical power. Graft is understood as political corruption with an element of greediness.Graft (noun) refers to the rewards of corruption: the loot, booty, payoffs, or spoils.

5 myths about ISO 37001

Myth 1: ISO 37001 is a race to the bottom, World Class, rigorous, documentation

Myth 2: ISO 19600 and ISO 37001 are the same thing or in conflict. Guidelines CMS(19600),certification(37001)

Myth 3: ISO 37001 is the first and only international ISO standard-ABMS and compliance

Myth 4: Anybody can certify ISO 37001(due diligence on third party organization)

Myth 5: ISO 37001 is only good for certification, gap analysis, remediation for best practises,internal auditors for anti-bribery effectiveness

Grand corruption

High level or "grand" corruption takes place at the policy formulation end of politics. It refersnot so much to the amount of money involved as to the level at which it occurs - wherepolicies and rules may be unjustly influenced. The kinds of transactions that attract grandcorruption are usually large in scale - and therefore involve more money than bureaucratic or"petty" corruption. Grand corruption is sometimes used synonymously with political corruption,referring to corruption involved in financing political parties and political campaigns.

Corruption, World Bank-the abuse of public power for private gain

TI- abuse of entrusted power for private gain

Economics-Scarce/limited resource for too many takers

Sociology-Taboos

Law- illegal, illegitimate, unlawful acts

Grease money

Also called a softener, sweetener, gift.

Political corruption

The term "political corruption" is conceptualised in various ways through the literature

on corruption. In some instances, it is used synonymously with "grand" or high-level

corruption and refers to the misuse of entrusted power by political leaders. In others, it

refers specifically to corruption within the political and electoral processes. In both

cases, political corruption not only leads to the misallocation of resources, but it also

perverts the manner in which decisions are made.

Principal-Agent Theory

Most public and private organisations are organised hierarchically. The key relationship

in a hierarchy is the one between a subordinate employee (agent) and his or her

superior (principal). Incentive or principal-agent theory highlights the importance of

divergent objectives, asymmetric information, incentives and penalties, recruitment

and salaries etc. A lack of information, for example, makes it difficult for the principal to

monitor the agent's actions and hold the agent accountable. The theory has been

used to construct micro-economic explanations of corruption and relevant institutional

reforms.

State capture

State capture is the phenomenon in which outside interests (often the private sector,

mafia networks, etc.) are able to bend state laws, policies and regulations to their

(mainly financial) benefit through corrupt transactions with public officers and politicians.

The notion of state capture deviates from traditional concepts of corruption, in which a

bureaucrat might extort bribes from powerless individuals or companies or politicians

themselves steal state assets (see kleptocracy). State capture is recognised as a most

destructive and intractable corruption problem, above all in transition economies with

incomplete or distorted processes of democratic consolidation and insecure property

rights.

Figure 2 : Risk bearing capacity as basis for measures to manage risks

Exceeding of risk

appetite

Within the risk

appetite

4 3

2 1

LOW MEDIUM HIGH

Exte

nt

of D

am

age

Probability

PROBABILITY AND IMPACT

Low impact/ high probability of occurrence : Risks in this quadrant fall into the categoryof foreseeable errors. Using a cost/ benefits analysis, controls are put in place for thepurpose of preventing or reducing risk.

Low impact/ low probability : Risks in this quadrant represent typical operational risk. Theyhave no substantial impact on the achievement of objectives and are usually acceptedwithout the setting of measures. Any damage caused can be covered by companyresources.

High impact/ high probability : Risks in this quadrant jeopardize the achievement ofobjectives and must be given priority using the established priority list. Measures are put inplace to mitigate impact to an acceptable level.

Significant impact/ low probability : Risks in this quadrant generally relate to naturaldisasters (e.g. ice, storms, earthquakes). These events are mostly unpredictable and aregenerally mitigated through the application of insurance or disaster recovery plans.

EVENT IDENTIFICATION :

Positive (opportunity) and negative (risks) nature.

Natural, economic, social and political environment.

RISK ANALYSIS :

Probability and impact.

Gross risks i.e risks before risk management / insurance / analyzed / residual risks / place areassessed.

RISK TREATMENT :

Measures are taken to control their impact on the achievement of strategic objectives. Riskcan be avoided through the omission of a business activity. Risk with low impact areaccepted.

Measures must be put in place to reduce risk, either through checks or through transfer tobusiness partners (e.g. insurance).

INTERMEDIARIES AS TARGET FOR COMBATING CORRUPTION

A private sector approach for managing exposure to risk of corruption

1. The significance of intermediaries for combating corruption

Intermediaries In International Business- Blessing And Curse

The Need For commercial organizations to prevent Corruption

Case Studies On Anti- Corruption Measures in Respect to intermediaries/Agents/JV/partners, suppliers, third parties

IS0 37001 free partisan management tool any organization. Global

ALL ELEMENTS OF ABMS (sections 4-10)-extent individual org.

Eg. MICROSOFT 37001same ISO 9001 except certification, bribery.

Compliance-new international anti-bribery standard ISO 3700

Independent accredited third party-legal local requirements.

2. Investigating Anti- Corruption Measures in Respect to Intermediaries

i. Laying the foundation

What is bribery-Common language (Convergence/Divergence)

What is Risk Assessment. Rule of law. Contested, Challenged,

Controversial, Circumvented. Cross-border problem. Culture specific,

customs, traditions, norms, mores, taboos. Value Chain.

New Technical Advisory Group US- relevant, effective

ii. Literature review – considering Theories

Principal-Agent theory and corruption. Adapt and adopt Best Practices.

Continued improvement/adherence-compliance

iii. Requirements For Anti- Corruption Compliance

Elements of an Anti-Corruption Compliance Systems In General

Commitment by the Top Management- “Tone from the Top”

Policy

Responsibilities and Resources

Risk Assessment

Procedures and Processes

Communication and training

Guidance and reporting

Monitoring, review and improvement

Incentives and sanctions

Anti-Corruption And Compliance systems in Respect to Intermediaries

External Certification of Anti-Corruption Compliance system

Certification to gain leniency (3 years auditing and 1 year mini auditing)

iv. Design And Methods Of Investigation

Case Study Design

Ensuring the rigor of case study research

Collection and analysis of data

Case Study On Anti-Corruption Measures towards intermediaries

3. Application Of Third Party Due Diligence

Approach in Combating Corrupt Conduct by Intermediaries

Signaling of good/bad intermediaries

4. Conclusion

Edelman Trust Barometer (Trust in Malaysian Business) 2015 (65%)2016(56%)

Crony Capitalism Index 2016(The Economist)Malaysia 2/22, Singapore 4/22

Asian Business Outlook Survey 2016(AmCham Singapore. US Chamber of Commerce (Lack of Corruption-17%)

UKM study 2001- 33% 4th year students corruption, abuse of power,

KPMG Malaysia Fraud, Bribery and Corruption Survey 2013- 90% Bribery and Corruption affecting business, (94%) in cash payment, poor internal controls(68%)code of Ethics/Conduct(81%)Greed/lifestyle(55%), personal financial pressure(42%)

EY Asia Pacific Fraud Survey 2013, (39% bribery and corruption practises happen widely), internal audit best way to deter fraud.

5. Due Diligence on Third Parties

Change in business ownership or Key personnel

Change in status entity

Existing Contracts

Website Review

Thank you so much for your

attention.

Finish……