INTRODUCTION or other governmental employee acts in an official

INTRODUCTION

Corruption is
usually refer to dishonest or unethical conduct by a person entrusted with
a position of authority, often to acquire personal benefit. Corruption may
include many activities including bribery and embezzlement.
Government, or ‘political’, corruption occurs
when an office-holder or other governmental employee acts in an official
capacity for personal gain. Corruption can occur on different scales.
Corruption ranges from small favours between a small number of people (petty
corruption), to corruption that affects the government on a large scale (grand
corruption), and corruption that is so prevalent that it is part of the
everyday structure of society, including corruption as one of the symptoms of
organized crime.

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Corruption
is the misuse of public power
(by elected politician or appointed civil servant) for private gain. In order to ensure that
not only public corruption but also private corruption between individuals and
businesses could be covered by the same simple definition:

Corruption is the misuse
of entrusted power
(by heritage, education, marriage, election, appointment or whatever else) for
private gain.

This broader definition
covers not only the politician and the public servant, but also the CEO and CFO
of a company, the notary public, the team leader at a workplace, the
administrator or admissions-officer to a private school or hospital, the coach
of a soccer team, etcetera.

Corruption is an
improbity or decay in the decision-making process in which a decision-maker
consents to deviate or demands deviation from the criterion which should rule
his or her decision-making, in exchange for a reward or for the promise or
expectation of a reward, while these motives influencing his or her
decision-making cannot be part of the justification of the decision.

Major corruption comes close whenever
major events involving large sums of money, multiple ‘players’, or huge
quantities of products (think of Navy product) often in disaster situations,
are at stake. Preferably, corruption flourishes in situations involving high
technology (no one understands the real quality and value of products), or in
situations that are chaotic. Think of civil war: who is responsible and who is
the rebel? Natural disasters like earthquakes, floods, droughts. The global
community reacts quickly but local government might be disorganised and
disoriented. Who maintains law and order? Or maybe the purchase of a
technologically far advanced aircraft, while only a few can understand the
technologies implied in development and production of such a plane. Mostly, the
sums of money involved are huge a relatively small amount of corrupt payment is
difficult to attract attention. Or the number of actions is very large, for
instance in betting stations for results of Olympic Games or international
soccer-tournaments which can easily be manipulated. Geo-politics might play a
role like e.g. the East-West conflict did in the second half of the 20th
century, in which the major country-alliances sought support from non-aligned
countries.

Fighting corruption takes place in
many ‘theatres’:

political reforms, including
the financing of political parties and elections;
economic reforms, regulating
markets and the financial sector;
financial controls: budget,
bookkeeping, reporting;
Public supervision: media,
parliament, local administrators and councils, registration;
free access to information
and data;
maintaining law and order;
improving and strengthening
of the judicial system;
institutional reforms: Tax
systems, customs, public administration in general;
Whistle blowers  and civil society organisations (NGO’s).

We know that corruption will not
disappear  from society. Our efforts are
meant to restrict corruption and to protect as much as possible the poor and
weak in our societies. In the end all corruption costs are paid by the consumer
and the tax-payer. They need protection.

TYPES OF CORRUPTION

The converse of bribery is extortion,
the abuse or threat of power in such a ways to secure response in payment of
money or other valuable things. Extortion according to the Oxford English
Dictionary “is the act or practice of extorting (defined as either to
wrest or wring from a person, extract by torture or to obtain from a reluctant
person by violence, torture, intimidation, or abuse of legal or official
authority, or – in a weaker sense by importing, overwhelming arguments or any
powerful influence) or wresting especially money, from a person by force on by
undue exercise of authority or power.”

Another type of corruption is the misuse
of public property and funds. Control of property provides
opportunities for mismanagement and corruption. An extreme form is the
large-scale “spontaneous” privatization of state assets by enterprise managers
and other officials in some transition economies. According to Leslie Holmes
(1999), the process of privatization which is ultimately implemented by the
state provides new opportunities to state officials. They can demand or request
bribes and kickbacks from private agents interested in purchasing a formerly
state-owned business. At the other end of the scale is petty theft of items
such as office equipment and stationary, vehicles and fuel. The perpetrators of
petty theft are usually middle and lower-level officials, compensating, in some
cases, for inadequate salaries.

Theft of government financial resources is
another form of corruption, officials may pocket tax revenues or fees (often
with the collusion of the payer, in effect combining theft with bribery) steal
cash from treasures, extend advances to themselves that are never repaid, or
draw pay for fictitious “ghost” workers, a pattern well documented in the
reports of audit authorities. For example in Our Navy organization this issue
also take place which reported widely by local newspapers, the issue of Jet
engine disappear and also a case of Malaysian army clerk making false payment
to unexist workers and followed by case of stealing vessel oil in Navy Base,
this will bring Navy people down and will effect to damaged the good name of
Malaysian Navy itself. The others example is from our neighbour country former
Philippines president Ferdinant  Morcos
was accused of stealing millions of dollars, much of it in American foreign
aid. In another example in Iran-Contra affair in which 15 profits from the sale
of US government property (antitank and antiaircraft missiles) were diverted to
private arms dealers and to counterrevolutionaries in Latin America.. 

Robert 
Thobabeen  (1991) brings another
form of corruption Influence Peddling when individuals with access to people in
high places are sometimes tempted to trade on the influence of high ranking
government officials. “There is money to be made through sale of access,
the arrangement of contracts and timely intervention to secure favourable
disposition of regulatory decisions and government contract. The use of these
kinds of connections for personal gain is usually described as influence
peddling.”

Patronage is
another form of corruption. The assignment of government positions to political
supporters has long been a practice in politics. While civil service
regulations at the national and state level may effectively curtail the number
of patronage jobs, political appointments remain at the top levels of
government and provide a legitimate way for elected politicians to influence
bureaucracy through the appointment of legal executive officials. The process
becomes corrupt when appointees are expected to pay for their jobs. The custom
of rewarding wealthy campaign contributors with appointments as ambassadors has
been traditional in presidential politics. These are the following.

THE
EFFECTS OF CORRUPTION ON ECONOMIC AND POLITICAL DEVELOPMENT

Corruption
can effect on human capital formation, which is the most important input in the
process of production and transformation that is called economic development.
First corruption weakens tax administration and can lead to tax evasion and
improper tax exemptions as discussed above. Therefore, for a given tax system,
the higher the level of corruption, the lower the revenue and the lower the
resources available for funding public provision of certain service, including
education. Second corruption increase the operating cost of government and
therefore reduces the resources available for other uses, including the
financing of social spending that is crucial to the formation of human capital.
In fact, higher corruption is found to be associated with lower education and
health spending. Corruption also will likely decrease the effectiveness of aid
flows, which could have negative effects on the development.

Corruption
may dissipate the important asset of political legitimacy, which most
governments seek to preserve and build on. One of the major tasks of any regime
is the building of its own legitimacy a resource which will enable it to gain
more easily the support and the assistance of the public in connection with
development. By destroying the legitimacy of political structure in the eyes of
those who have power to do something about the situation; corruption can
contribute to instability and possible national disintegration.

Politicians
and civil servants as an elite should give purpose to national effort. In so
doing they cannot avoid setting an example others will follow. If the elite is
believed to be widely and thoroughly corrupt, the man-in-the street will see
little reason why he too should not gather what he can for himself and his
loved ones. So corruption among an elite not only debases standards popularly
perceived, it forces people to undertake the underhanded approach out of
self-defence. 38 They feel they must resort to corrupt practices just to get
their due, not to secure in ordinate returns. Corruption causes decisions to be
weighted in terms of money, not in terms of human need.

And
more important that corruption may threaten the democratic development. People
may existing poor socials-economic conditions and widespread corruption link
with the process of democratization. Which in turn creates serious obstacles
for further democratization. Thus as we have seen high and rising corruption by
effecting on the effectiveness of social spending; eroding the tax and custom
administrations; and destroying the legitimacy of existing political system may
effect very negatively on the political and economic  development.

HOW
TO COMBAT AGAINST CORRUPTION

One
of the most important institutions is a professional and well-motivated civil
service. The selection and promotion in civil service should be merit
based rather than patronage. Pay of civil servants is also very important
issue. In civil service should be established Ethics codes and institutional
values, which help to protect a civil service’s integrity and professionalism.
The civil service should be protected from the unwarranted political
interference. Such civil service would not only be a protection against
corruption but would also guarantee that goods and services would be delivered
efficiently. Thus civil service reform is one of the most important part in
fighting against corruption.

The
other important institution that needs to be reformed is the judicial
system. Enforcement of anticorruption legislation requires an
efficient, accountable judiciary. Reform of judicial system should concentrate
on the independence of this branch. The procedures for selection and removal of
judges should be defined properly, should be improved court administration and
case- 40 flow management which in some countries may last months. The courts
will be effective, if there is strict mechanisms to enforce judgments. The
strict enforcement of rules and regulations is very important combating
corruption. If an official knows that rules and regulations are strictly and
consistently enforced he/she will less likely engage in corrupt behavior.
Should be reduced ex parte communication between judge and litigants. Courts decisions
should be published. Regular publication of consultation documents about the
new laws is good practice everywhere. So anticorruption bodies appear to be
promising if there is a strong and independent judiciary.

The Budget
Reform is the other factor combating corruption. Government should
undertake only what it can do well within its resource constraints. Government
should develop well functioning budget processes, allocate resources
strategically, and enable programs and projects to be implemented efficiently
and effectively. There should be frequent reports to the legislature on budget
implementation that enable comparisons to be made between budgeted and actual
revenues and expenditures. A legal framework for public expenditure management
should combine legal principles with economic consideration as well as
management rules. It should ensure that public resources are used within the
limits set by the Legislative Branch and in compliance with the allocation
schedule authorized in the budget document. Therefore, changing or amending the
budget legislation should be a lengthy and painstaking process. Government
departments and agencies should be encouraged to produce annual reports on
their activities, achievements, and financial results, and national governments
should report these in consolidated form. The publication of government budgets
and their availability in easy-to read summary form also may help to control
corruption.

Good
financial management system is also a powerful instrument
for preventing, discovering, or facilitating the punishment of fraud and
corruption. They allocate clear 41 responsibilities for managing resources,
reveal improper action and unauthorized expenditures facilitate audit by
creating audit trails, and protect honest staff. By reducing opportunities for
corruption and increasing the risks of detection, good financial management
systems help change corrupt conduct from “high profit/low risk” to
“high risk/low profit.” According to World Bank (1997) many of the
Bank’s borrowers have weak government financial management systems. Which
permits wide scale fraud, and inefficient use of loans provided by the World
Bank.

Audit
and control are viewed as a valuable instrument for
improving government fiscal management and for increasing the efficiency in the
allocation of public financial resources. The introduction or reinforcement of
auditing would be particularly important because it intervenes before resources
are committed. Therefore, corrupt activities could be stopped before they would
have an impact on the use of resources. Current budgetary practices in many
countries suggest that after the completion of the budgetary cycle-budget
preparation and implementation-results must be assessed retrospectively so that
officials can be held accountable for results achieved.

NGO’s,
Government Anti Corruption Engagement and Collaboration    In Malaysia there are many NGO’s and
Government Institutions are working to prevent and promote anti Corruptions
such as Yayasan Anti Rasuah Malaysia (YARM), Transparency International (TI),
Governance, Integrity, Accountability and Transferency (GIAT), Institut
Integriti Malaysia (IIM), Enforcement Agency Integrity Commissions (EAIC), etceteras. Engagement and Collaboration among
agency is very important to curb this issue, collaborations can be made through
training, sharing of information, expertise, technology and their respective
studies as a strategic medium of collaboration. For example, Institut Integriti
Malaysia (IIM) have their expertise in sharing info with their famous tagline
‘Tekad Integriti’ which derive from ‘Pelan Integriti National’ or PIN. PIN has
been launch from 23 April 2004 by Fifth Prime Minister Dato’ Seri Abdullah bin
Hj Ahmad Badawi. Tekad Integriti  include
five major determination of Integrity; First to reduce corruption, malpractice
and abuse of power effectively, Second to improve efficiency in public service
delivery system and overcome bureaucratic red tape, Third is to enhancing
corporate governance, business ethics and corporate social responsibility, Fourth
is to strengthen family and community institution and the last one is to
improve the quality of life and society. Not only that, in Malaysian Anti Corruption Commission (MACC)
itself have their own unit or sector call as “Pendidikan Masyarakat”
or “PenMas”. This sector play most important role to giving education
and awareness to civil society and civil servant about the effect of legal
action can be take to the corruption offenders. The remain agency and NGO’s
have their own  role in order to
participate in making better future for this country.

Whistle blowers and the role of civil society There is no doubt about the important role of army community and society
in generally to make sure our organization and Malaysia is free from
corruption. As part of a huge organisation, army community must immediately
report if they are found any illegal activity which is tend to the corruption
activity. Here also I am pleased to refer to the General Order code under
Government Civil Servant Rule which stated that “an official who fails to
exercise control over his or her subordinates or to take action against a
substance officer in breach of any of these provisions shall be deemed
negligent in performing his duties and irresponsible and liable to disciplinary
action”. In order to cater all corruption without border Malaysian Anti
Corruption Commission (MACC) have their own enforcement law which stated as
“whoever fails to report any corruption activity is an offence and could
be fine under MACC act” MACC act 2009 (act 694). This MACC act is to cater
or bind all citizen in this code and not only for civil servant but also to
private institution and all citizen as individual if they commit any offender
under the stated act and regulation. Meanwhile under the Whistle Blower Act
stated that “someone or whoever do/or making report about corruption can
be protect under this code”. This kind of protection sometimes very
important to protect the witnesses or information giver.

CONCLUSIONS

We have
seen that high levels of corruption have very harmful effects on economic and
political development as in other countries as well as in Malaysia. In fact if
we can save ‘money leaking’ in most of the government agency it’s actually can
be used in spending to straighten the army asset.  Many people believe corruption is deeply
rooted in Malaysia society. Indeed, it is coming from the soviet times and also
from west colonial at the past when people had no power and the government
decided everything for them. So people during the past seven decades learned
not to make any decision. People lost their ability to think and make decisions
for themselves. But the democratic system is not something that gives everyone
everything that they want, but it demands the participation of everyone, people
should fight for their well-being themselves. They should learn the ways to
control the government. This concept have been brought by our present Prime
Minister Dato’ Sri Mohd Najib bin Tun Hj Abdul Razak. The concept of 1 Malaysia
: People First, Performance Now bring new era where the era of ‘government know
everything’ is ended. I am also pleased to stress the fair and free elections
because if people sell their power of electing they will lose their power to
demand anything from the elected officials. For controlling corruption is very
important consolidated democratic institutions especially free and fair
elections, people should understand that this is the basic decision they may
make. So the democratic institutions are very important for combating
corruption. Only by having established democratic institutions we may win the
fight against corruption.

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