Govt Agrees To Amend Trustee Acts To Prevent Misappropriation Of Funds

KUALA LUMPUR, Sept 9 (Bernama) -- The government has agreed to amend the Trustee (Incorporation) Act 1952 (Act 258) and the Trustee Act 1949 (Act 208) to prevent misappropriation of funds by the established trustees for purposes such as religious, social, and welfare activities.

The matter was agreed upon during today’s meeting of the Special Cabinet Committee on National Governance (JKKTN), chaired by Prime Minister Datuk Seri Anwar Ibrahim.

In a statement, the Prime Minister’s Office said that the amendment to Act 208 includes the definition related to beneficial ownership, those who benefit from the trust bodies, among other things.

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The amendment to Act 258 involves establishing regulations related to information disclosure, conflict of interest, and sources of funds and granting powers to enhance monitoring, verification, and auditing of reports and oversight of funds.

It said the amendments agreed on during the JKKTN meeting are in line with the government’s efforts to enhance governance integrity and combat corruption by seriously focusing on issues involving the professionalism of enforcement agencies as well as addressing corruption in government procurement and misuse of public funds particularly involving entities that receive funding from the government. 

“This issue not only results in financial losses but also undermines the credibility of public governance and the integrity of government institutions,” read the statement.

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At the same time, it said, the meeting approved the proposal to encourage all G7 grade companies with a Government Work Procurement Certificate (SPKK) to obtain MS ISO 37001 Anti Bribery Management System (ABMS), adding that the companies will be given priority in procurement for contracts valued at RM100 million and above within the first two years.

According to the statement, the initiative supports the corporate liability principle under Section 17A of the Malaysian Anti-Corruption Commission Act 2009.

“The government reiterates the commitment to strengthening governance and integrity and fully supports the national anti-corruption agenda.

“Every effort made will ensure that the governance and integrity of the public sector continue to be reinforced for the benefit of the nation and its people,” said the statement.

-- BERNAMA