KUALA LUMPUR (May 21): The enforcement of Section 17A of the MACC Act 2009 on June 1 reflects the government's commitment to tackling corruption, improving integrity and implementing good corporate governance.

In a statement, the Prime Minister's Office (PMO) said the section, which was gazetted on May 4, 2018, is in relation to the enforcement of the principle of corporate liability involving commercial organisations.

Essential features of Section 17A of the MACC Act criminalises an organisation for corruption-related actions by associated persons done for the benefit of the organisation.

Section 17A(1) states that a commercial organisation commits an offence if a person associated with it corruptly gives, offers or promises any gratification to any person with an intent to obtain or retain business or a business advantage for the said commercial organisation.

Organisations/companies whom these individuals work for will also be held liable for not preventing the corrupt acts from happening.

The PMO said the enforcement will encourage commercial organisations to implement measures to adhere to the law and ensure the business is not involved in corrupt activities for their benefit.

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