MACC recommends wider powers for Commissioner of Buildings to strengthen strata fund management

PUTRAJAYA (June 19): The Malaysian Anti-Corruption Commission (MACC) has recommended amendments to the Strata Management Act 2013 (Act 757) to expand the investigative powers of the Commissioner of Buildings (COB) in addressing conflicts of interest and the misuse of management funds in strata properties.

In a statement on Friday, the MACC said the proposal was among six recommendations submitted by its governance investigation division (BPT) to the National Housing Department (JPN) under the Ministry of Housing and Local Government to strengthen governance in financial management and procurement practices in strata developments.

"Among the key recommendations proposed are amendments to Act 757 to expand the COB's investigative powers over conflicts of interest and fund misappropriation, enforcement through compoundable offences to expedite action and improve compliance, and the gazettement of financial and procurement guidelines as legal obligations with clear procedures," the statement said.

The MACC said the recommendations were presented by BPT deputy director II Ahmad Shukri Mohd Taib to the JPN on June 16 through a study on challenges faced by the COB in regulating financial management and procurement in strata developments.

To enhance transparency, the MACC also proposed the development of an e-reporting system based on Singapore's Building Maintenance and Strata Management Act 2004 model, which would enable more transparent periodic reporting and reduce the risk of document manipulation.

"It was also proposed that staffing structures be reorganised through the addition of personnel and the establishment of an optimum staffing ratio to improve monitoring effectiveness, while officers' competencies should be strengthened through continuous training in finance, auditing, procurement and enforcement," the statement said.

Meanwhile, the JPN welcomed all the recommendations and expressed confidence that their implementation would strengthen governance, enhance transparency and accountability, and reinforce organisational management practices towards delivering services that are more ethical, efficient and effective.

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