On 18 March 2021, the Malaysia Anti-Corruption Commission ("MACC") announced that it has charged a company providing ship rental services with an offence under Section 17A of the Malaysian Anti-Corruption Commission Act 2009. This is the first time that MACC has charged a company under this provision, which came into force on 1 June 2020.
For context, Section 17A imposes liability on a company and its officers holding managerial positions if persons associated with the company offer a bribe to a third party for the company's benefit. The maximum penalty for this offence is a fine of up to RM1 million or 10 times the value of the bribe (whichever is higher), or up to 20 years' imprisonment, or both.
For more information, click here to read our Legal Update. This Update provides a brief background of the case and the key issues directors and management should be cognisant of when performing their role in the company. These include: (i) directing attention to the red flags; (ii) the steps to take to afford a defence; (iii) how-tos in navigating differing Board opinions; (iv) allocation of resources to analyse bribery risks to transactions presented to the Board; (v) insurance options; and finally, (vi) a reminder on the statutory duty to report bribery offences.
