The government's move to make chief executive officers of government-linked companies and government-linked investment companies, as well as members of the judiciary declare their assets to the Malaysian Anti-Corruption Commission (MACC) is a wise one.

An effective asset declaration system should cover all members of the executive, legislative, and judicial branches, as well as those from the bureaucracy.

The current asset declaration mechanism for members of the government administration, members of parliament (MPs), and senators would also be enhanced by the MACC to boost the government's credibility and integrity.

The government should also include state assemblymen in the list.  

A new code of ethics for MPs would also be introduced under the Houses of Parliament (Privileges and Powers) Act 1952.

This is a valid demand because allocation of resources and their salaries, allowances and perks are paid from tax revenues.

It has been noted that MPs were ranked as the most corrupt of the top six institutions in Malaysia, based on Transparency International's 2020 General Corruption Barometer.

The importance of declaring their assets and sources of income is clear.

In 2019, former MACC deputy chief commissioner (Prevention) Datuk Seri Shamshun Baharin Mohd Jamil noted that the Dewan Rakyat unanimously approved a motion to make it compulsory for all MPs to declare their assets to the speaker, and for a copy of the declaration to be lodged with the MACC.

However, MACC only acts as the "custodian" (guardian) of the information and will display it in the Assets Declaration Portal within three months of receiving it (https://mydeclaration.sprm.gov.my/).

Shamshun stated that there was no specific law nor clear punishment for MPs who did not comply.

Investigations are conducted by the MACC into individuals who have extravagant lifestyles beyond their income level, under Section 36 of the MACC Act 2009.

False declarations can also be investigated under Section 3 of Act 783 and Section 199 of the Penal Code.

If a civil servant is convicted, he or she would be fined and imprisoned for a term not exceeding three years.

With regard to civil servants, their assets declarations are currently verified internally. The Institute for Democracy and Economic Affairs suggested that this system be changed, and that the MACC should be given the mandate to verify and monitor asset declarations.

There is a growing international trend requiring public officials to declare their assets and income, and also increasingly, the assets and incomes of immediate family members.

The main aim of the declaration of assets is to prevent corruption and detect misappropriation of public funds.

This measure increases transparency and trust in the public administration, and prevents conflict of interest, illicit enrichment and proliferation of unexplained wealth.

The declaration of assets should be done before and after a person holds a position, with net worth analysis conducted periodically.

It is advisable to do it at least once every two years.

The public declaration of assets will not cause harm.

After all, the names of the top 10 richest people in Malaysia are often publicised in the media, and none have faced any trouble upon declaring their wealth.

There should be nothing to hide if they are clean and honest.

Compelling all three branches of the government to declare their sources of income, assets, debts and financial interests is a huge step forward in the government's efforts to uphold the principles of honesty, transparency and integrity.

The writer is president, Malaysian Association of Certified Fraud Examiners

https://www.nst.com.my/opinion/columnists/2022/09/833569/declaration-assets-all-branches-govt-huge-step-forward