With CFP, company immune if employee charged with corruption - Labour Law Blog

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Feb 21, 2017

With CFP, company immune if employee charged with corruption

Corporate organisations will not be held collectively responsible for acts of corruption committed by individual staff (as will be the case under the proposed Corporate Liability Law), should they agree to sign the Corruption Free-Pledge (CFP).


Malaysian Anti-Corruption Commission (MACC) deputy chief commissioner (Prevention) Datuk Shamsun Baharin Mohd Jamil said although the CFP is not compulsory, by taking the pledge, corporations could be protected if any of their employees is charged in court with corruption.

He said the law, which is included under the MACC Act 2009, reads that corporations would be held liable for any act of corruption made by their employees. However, the CFP could help shield them from blame, as the pledge ensures that only employees are accountable for acts of soliciting gratification and bribery.

“Compared to the Corporate Integrity Pledge (CIP), the CFP is more of an individual pledge which ensures that only employees are responsible for their actions,” he told newsmen after witnessing the CFP signing ceremony made by state water concessionaire, Syarikat Air Darulaman (Sada) here today.

Sada chief executive officer Datuk Abd Ghani @ Zulkifli Zainuddin led the pledge. According to Shamsun, Sarawak and Kedah are two state governments which have signed the CFP, while the Inland Revenue Board and Syarikat Air Darulaman Sdn Bhd (Sada) became the first agency and government-linked company, respectively, to do the same. He said the Corporate Liability Law is expected to be implemented this year, thus he advised more corporations to sign the CFP. 

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