Latest news with #PushpanMurugiah
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
C4, G25 renew calls for procurement law after latest audit report
The 2025 Auditor-General's Report Series 2 identified serious problems in how over RM460mil of public money was spent on land deals, university tenders and defence contracts between 2020 and 2024. PETALING JAYA : Two independent reform advocates have renewed calls for a legally binding government procurement law, saying it is essential to strengthen transparency, accountability and governance in public spending. In separate statements to FMT, the Center to Combat Corruption and Cronyism (C4) and G25, a group of retired senior civil servants, said the current framework — based largely on non-binding Treasury circulars — lacks the legal force needed to curb abuse and wastage. C4 CEO Pushpan Murugiah said the proposed government procurement law should mandate minimum disclosure standards for tenders, project details and eligibility criteria. 'This is to ensure that such contracts entered into are never fully obscured from public scrutiny,' he told FMT. Pushpan Murugiah. He said the law must also include accountability mechanisms at every stage of a project's lifecycle to ensure that public funds are used effectively. Pushpan also said such a law would allow legal action to be taken against ministries or agencies that fail to comply with procurement rules. He added that while deterrence is important, punitive measures like imprisonment should not be applied indiscriminately without addressing root causes such as coercion or systemic pressures faced by officers. The 2025 Auditor-General's Report Series 2 released on Monday found serious problems in how over RM460 million of public money was spent on land deals, university tenders, and defence contracts between 2020 and 2024. G25 said the repeated issues raised by the latest report reflected systemic governance failures, including poor planning and disregard for financial procedures. 'The proposed law should regulate direct negotiations, unify procurement processes across ministries and statutory bodies, and follow international best practices such as the United Nations Commission on International Trade Law,' the group said. The group also called for stronger enforcement of the Financial Procedure Act 1957 and Treasury Instructions, and urged mandatory training for public servants in procurement and financial governance. It stressed that civil servants must never carry out instructions that violate the law, even if directed by superiors. It also called for deterrent reforms, including criminal liability for senior officials, whistleblower protection, and full autonomy for oversight agencies such as the Malaysian Anti-Corruption Commission and the auditor-general's office. G25 urged the declassification of government contracts currently protected under the Official Secrets Act 1972, saying public access would help reduce corruption, cronyism, and unnecessary spending. A government procurement bill is expected to be tabled in Parliament this year.
Free Malaysia Today
03-07-2025
- Business
- Free Malaysia Today
C4 links NGO impropriety to regulatory, oversight gaps
C4's CEO Pushpan Murugiah wants the government to implement reforms to improve the governance of NGOs and charitable bodies. PETALING JAYA : A lack of consistent regulation and oversight has left charitable organisations vulnerable to transparency lapses and misconduct, an anti-graft watchdog has warned. Pushpan Murugiah, CEO of the Center to Combat Corruption and Cronyism (C4), said this has resulted in several NGOs and charitable bodies being mired in scandals. He cited Aman Palestin Berhad and Yayasan Akalbudi, both established to serve charitable causes, as 'notable' examples. In February last year, two Aman Palestin executives and a company director claimed trial to a total of 164 charges involving money laundering, criminal breach of trust (CBT) and cheating. Deputy prime minister Ahmad Zahid Hamidi was also charged with corruption, CBT and money laundering of Yayasan Akalbudi funds but secured a conditional discharge in September 2023. 'There is an inherent risk that not just 'pro-business' groups, but NGOs as a whole can be used as vehicles to facilitate corruption and money laundering,' Pushpan told FMT. He was asked to comment on the deregistration of Ikhlas, a society for small-time entrepreneurs, after it failed to submit its annual financial statements. On Sunday, the Malaysian Muslim Consumers Association announced that it would no longer work with Ikhlas after finding out that it was deregistered in 2022. Pushpan said there was no specific law to govern 'NGOs' and 'charitable bodies', adding that there was ambiguity around the definition of those terms. Instead, he said many NGOs are registered under different legal frameworks—some as societies under the Societies Act 1966 and others as companies limited by guarantee under the Companies Act 2016. 'The lack of legal clarity as to who is responsible for governing charitable bodies allows many bad actors to escape accountability and oversight for their actions,' he added. Pushpan called for the government to improve the governance of these bodies and mooted the establishment of a single oversight body to govern their activities. He said the setting up of such a body—alongside other needed reforms like a Political Financing Act, transparent beneficial ownership rules, and a Procurement Act— would ensure that charitable bodies are not abused for corrupt purposes. 'This is especially so when it comes to organisations that have ties to political parties or politicians,' he said. Salim Bashir. Lawyer Salim Bashir called for laws which would compel NGOs to disclose the sources of their income and the manner in which their funds are managed. 'The government must consider establishing an oversight body like the UK Charity Commission to monitor NGOs' activities or to attend to complaints against unlawful acts that are deemed to be detrimental to public safety and economic security,' he said, according to a report by Scoop. Rajesh Nagarajan. Fellow lawyer Rajesh Nagarajan said NGOs play a vital role in nation-building and should be subject to proportionate checks and balances—particularly in areas when public trust and commercial interests intersect. He suggested that businesses consult the various chambers of commerce and trade associations to verify the existence and reputation of NGOs, particularly lesser-known ones, prior to making their contributions. Such a step would prevent companies from being inadvertently connected to any fraudulent fundraising efforts. 'Engage lawyers early when facing suspicious donation requests or threats cloaked under 'activism' to avoid reputational and financial damage,' he said, when contacted by FMT.
Daily Express
25-06-2025
- Business
- Daily Express
C4 links NGO impropriety to regulatory, oversight gaps
Published on: Wednesday, June 25, 2025 Published on: Wed, Jun 25, 2025 By: Rex Tan, FMT Text Size: C4's CEO Pushpan Murugiah wants the government to implement reforms to improve the governance of NGOs and charitable bodies. PETALING JAYA: A lack of consistent regulation and oversight has left charitable organisations vulnerable to transparency lapses and misconduct, an anti-graft watchdog has warned. Pushpan Murugiah, CEO of the Center to Combat Corruption and Cronyism (C4), said this has resulted in several NGOs and charitable bodies being mired in scandals. He cited Aman Palestin Berhad and Yayasan Akalbudi, both established to serve charitable causes, as 'notable' examples. In February last year, two Aman Palestin executives and a company director claimed trial to a total of 164 charges involving money laundering, criminal breach of trust (CBT) and cheating. Deputy prime minister Ahmad Zahid Hamidi was also charged with corruption, CBT and money laundering of Yayasan Akalbudi funds but secured a conditional discharge in September 2023. 'There is an inherent risk that not just 'pro-business' groups, but NGOs as a whole can be used as vehicles to facilitate corruption and money laundering,' Pushpan told FMT. Advertisement He was asked to comment on the deregistration of Ikhlas, a society for small-time entrepreneurs, after it failed to submit its annual financial statements. On Sunday, the Malaysian Muslim Consumers Association announced that it would no longer work with Ikhlas after finding out that it was deregistered in 2022. Pushpan said there was no specific law to govern 'NGOs' and 'charitable bodies', adding that there was ambiguity around the definition of those terms. Instead, he said many NGOs are registered under different legal frameworks—some as societies under the Societies Act 1966 and others as companies limited by guarantee under the Companies Act 2016. 'The lack of legal clarity as to who is responsible for governing charitable bodies allows many bad actors to escape accountability and oversight for their actions,' he added. Pushpan called for the government to improve the governance of these bodies and mooted the establishment of a single oversight body to govern their activities. He said the setting up of such a body—alongside other needed reforms like a Political Financing Act, transparent beneficial ownership rules, and a Procurement Act— would ensure that charitable bodies are not abused for corrupt purposes. 'This is especially so when it comes to organisations that have ties to political parties or politicians,' he said. Lawyer Salim Bashir called for laws which would compel NGOs to disclose the sources of their income and the manner in which their funds are managed. 'The government must consider establishing an oversight body like the UK Charity Commission to monitor NGOs' activities or to attend to complaints against unlawful acts that are deemed to be detrimental to public safety and economic security,' he said, according to a report by Scoop. Fellow lawyer Rajesh Nagarajan said NGOs play a vital role in nation-building and should be subject to proportionate checks and balances—particularly in areas when public trust and commercial interests intersect. He suggested that businesses consult the various chambers of commerce and trade associations to verify the existence and reputation of NGOs, particularly lesser-known ones, prior to making their contributions. Such a step would prevent companies from being inadvertently connected to any fraudulent fundraising efforts. 'Engage lawyers early when facing suspicious donation requests or threats cloaked under 'activism' to avoid reputational and financial damage,' he said, when contacted by FMT. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
05-06-2025
- Politics
- The Star
Keeping the office free from political pressures
PETALING JAYA: An independent selection process free of political interests, including from the Prime Minister, is key to establishing an effective ombudsman's office, say stakeholders. The ombudsman must also be granted investigative powers and the authority to summon witnesses and demand documents from civil service departments, they said. It must also be allowed to enter any government premises without having to give prior notice, said Centre to Combat Corruption and Cronyism's (C4) chief executive officer Pushpan Murugiah. 'The ombudsman must be allowed access to all necessary persons and documents to facilitate investigations,' Pushpan said when asked about the progress in setting up the institution in Malaysia. 'Additionally, structural safeguards must be in place to ensure the autonomy of the ombudsman,' he said. C4 sits on the steering committee to develop the Ombudsman Bill, and it has produced a study on how Malaysia can establish such an institution. 'We have had many engagements with the legal affairs division of the Prime Minister's Department (BHEUU), including meetings with Deputy Minister M. Kulasegaran,' Pushpan said. The division has said the Bill is being drafted and is expected to be tabled in Parliament this year. Setting up the institution, which looks into maladministration in government services and works to reform such flaws, is among key reforms promised by the unity government. To make it truly independent, personnel in the ombudsman's office must be appointed through an open call for candidates and a vote in Parliament, said Pushpan. 'The Prime Minister cannot be granted the unilateral discretion to appoint ombudsmen,' he said. The ombudsman's office should also ideally streamline the current system to receive all public complaints against the civil service, he added. Family Frontiers, a group that represents Malaysians who have faced problems with government services, said the ombudsman's effectiveness would depend on its mandate, independence and operational structure. 'The devil is in the details. Civil society organisations have not yet seen the proposed Bill and would like to be meaningfully consulted. There is a risk of creating an additional bureaucratic layer that adds cost to tax payers without delivering tangible outcomes,' the group said in a statement. In many countries, the ombudsman does not have enforcement powers and their recommendations are not legally binding, which may limit their impact, Family Frontiers added.
The Star
04-06-2025
- Politics
- The Star
Saving time and money with ombudsman
Need for change: Children and their mothers outside the National Registration Department, Putrajaya, in a Family Frontiers' case in 2022. Family Frontiers also supports an independent and effective ombudsman's institution. PETALING JAYA: When a schoolgirl was sexually abused by another secondary student in Ireland, she was made to feel responsible – the school told her it was a behavioural issue. Worse, she was made to meet the abuser, while other students bullied her when they found out. Enter the Ombudsman for Children's Office (OCO). It investigated the case, and the school had to apologise to the victim while the school's board updated policies to reflect best practices. The National Education Department also included this form of bullying in its national anti-bullying action plan. We have cases like that in Malaysia, too, and that is why an ombudsman of our own is needed. In one case, an English teacher at a school in Kota Belud, Sabah, went missing for nearly the entire school term, and his student failed the subject in the Sijil Pelajaran Malaysia (SPM) examination. Then, mothers married to foreign spouses were unable to pass Malaysian citizenship to their children due to certain laws in the country. In both cases, the affected citizens had to spend thousands of ringgit and countless hours in court seeking redress for these problems, which arose from problematic policies or practices that protect errant civil servants. There are also people who were turned away from government counters because they were deemed to be inappropriately dressed. A Malaysian Ombudsman Office could have tackled these issues, says an NGO that has been working with the government to set up the institution. The Centre to Combat Corruption and Cronyism (C4) sits on the steering committee to develop the Ombudsman Bill. According to the Merriam-Webster dictionary, the word ombudsman originates from the Swedish term 'representative' and refers to an independent individual appointed to investigate complaints against a body or institution. The students in Sabah and the Malaysian mothers with foreign spouses would not have had to spend all that time in court if there had been an ombudsman's office, says C4. 'The SMK Taun Gusi case would be a good example, as the complaints were made against teachers and education department officers,' said C4 chief executive officer Pushpan Murugiah. 'The problems faced by Malaysian mothers trying to obtain citizenship for their children born to foreign fathers would also have been an issue for the ombudsman,' he said. Family Frontiers, a group that helped the Malaysian mothers, also supports an independent and effective ombudsman's institution. 'It is a key component of good governance and democratic accountability,' it said. An ombudsman's role, according to Pushpan, is to pinpoint structural flaws and implement improvements to completely prevent complaints in the future. 'In a nutshell, the ombudsman gets down to the root causes of maladministration and works with the civil service to fix them,' he said. For example, in cases where people are denied entry to government offices due to their dressing, the ombudsman would be able to probe whether there were insufficient guidelines or if officers were inadequately trained. 'The ombudsman would make recommendations to improve policies, regulations, rules and standard operating procedures to prevent similar situations from happening again.'
