Corruption compounds risk turning graft into a business cost
PETALING JAYA: Settling corruption cases through compound fines without public explanation risks turning graft into a calculated business decision rather than a crime, a criminologist has warned.
Independent criminologist Datuk Shahul Hamid Abdul Rahim said while compounds are permitted under the law, the greater danger lies in the perception that offenders can simply pay their way out of a case, avoid a criminal record and walk away without meaningful consequences.
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“For those who calculate risk, they will think: ‘If I am caught, I just pay. I do not need to go to prison.’ The remedy becomes very simple: ‘It’s okay, it’s just a compound. Just pay.’
There is no stigma, no long-term consequences, no disclosure and no public explanation” he told theSun yesterday.
“This directly undermines the primary purpose of punishment. We want punishment to act as a deterrent, not merely allow someone to pay a compound and move on.”
Shahul said the risk was particularly acute in white-collar crime and corruption cases involving companies, contractors and individuals in positions of power.
“When corruption is treated as a business cost, the thinking becomes: ‘If I profit RM2 million from a project and the risk is a compound of RM200,000, I still make a substantial profit. So, why not do it?’
“The offence will then be repeated. Corruption becomes a profit-and-loss calculation rather than a question of ethics, integrity and the rule of law.”
Under Section 92 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amla), the competent authority or relevant enforcement agency may, with the consent of the public prosecutor, compound offences under the Act by accepting payment of up to 50% of the maximum fine.
The First Schedule of Amla also lists several offences under the Malaysian Anti-Corruption Commission (MACC) Act as serious offences, including gratification, bribery of public officials and abuse of office for gratification.
The warning follows concerns raised on June 5 by Transparency International Malaysia president Dr Raymond Ram, who said the increasing use of compounds, settlements and withdrawals of charges in corruptionlinked cases risked creating a “pay-to-settle” culture. He called on the Attorney-General’s Chambers and MACC to publicly explain instances when charges are withdrawn or quashed following such arrangements.
Shahul echoed those concerns, adding that the repeated use of compounds without adequate explanation could deepen public suspicion that the wealthy and influential are treated differently from ordinary Malaysians.
“Some may say these matters can be settled behind closed doors. Others may believe the rich and powerful receive special treatment.
“Ordinary people go to prison, but those with influence, or who may have connections, simply pay a compound and make the problem disappear.”
He called for full transparency in every settlement, including disclosure of the individuals involved, the nature of the offence, the amount paid, the reasons prosecution was not pursued and whether any additional conditions were imposed.
Shahul also said certain categories of cases should never be resolved through compounds, particularly those involving public interest, public safety and essential services such as healthcare, education, construction, infrastructure and food safety.
“If corruption occurs in these sectors, quality could decline, lives could be put at risk and the impact on the public could be severe. Such cases cannot simply be paid off and forgotten.”
He added that cases involving large sums of money, repeat offenders, senior officials, abuse of power, serious breaches of trust or organised criminal networks should be prosecuted in court.
“For minor cases, such as a RM50 bribe to a traffic policeman, compounds may be considered, but the amount imposed should be a substantial multiple of the bribe to serve as a genuine deterrent.
