ti-m strategic plan 2012 – 2015

TI-M Strategic Plan 2012-2015

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STRATEGIC PLAN

2012-2015

“ONLY PEOPLE CAN STOP CORRUPTION”

FOR PRESENTATION AT THE TRANSPARENCY INTERNATIONAL-MALAYSIA

ANNUAL GENERAL MEETING

17 MARCH 2012

COPYRIGHT: TRANSPARENCY INTERNATIONAL-MALAYSIA


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Table of Contents

1. ABOUT TI-M ................................................................................................................. 3

2. ABOUT THIS STRATEGY ................................................................................................. 3

3. DEVELOPMENT OF THE STRATEGY ................................................................................ 4

4. INTRODUCTION ............................................................................................................ 5

4.1 The Context ...................................................................................................................... 5

4.2 External Trends that Will Impact the Anti-Corruption Work of TI-M .............................. 8

4.3 SWOT Analysis .................................................................................................................. 9

5. TI-M VISION & MISSION AND CORE VALUES ................................................................ 11

5.1 Vision & Mission ............................................................................................................. 11

5.2 Core Values ..................................................................................................................... 11

6. STRATEGIC PRIORITIES ................................................................................................ 12

6.1 People ............................................................................................................................. 12

6.2 Institutions ..................................................................................................................... 12

6.3 Impact ............................................................................................................................. 12

7. ORGANISATIONAL DEVELOPMENT & KEY PROGRAMMES ............................................ 13

7.1. Organisational Development ........................................................................................ 14

7.2 Programmes ................................................................................................................... 21

7.2.1 Forest Governance Integrity (FGI) Programme ....................................................... 21

7.2.2 BIP Delivery Unit ...................................................................................................... 26

7.2.3 Public Sector – Strategic Plan Document ................................................................ 35

7.2.4 Defence and Security: Reducing Corruption and Raising Transparency in the

Defence and Security Sector In The ASEAN Region.......................................................... 41

7.2.5 Reducing Corruption in Labour Migration ............................................................... 47

8. IMPLICATIONS OF THE STRATEGY................................................................................ 50


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1. ABOUT TI-M

TI-M, which was established in December 1998, has come to be recognised as a leading

watchdog in the fight against corruption in Malaysia. This is a result of its efforts to create

awareness on corruption through representation, engagement with the government and

private sector, research and partnership with the media.

The external and internal environments posed special challenges and provided extensive

opportunities to TI-M in engaging in the war against corruption. They created the impetus

for TI-M to undertake a strategic review and planning exercise resulting in the first Strategic

Plan for TI-M 2004-2009.

2. ABOUT THIS STRATEGY

The TI-M Strategy 2012-2015 will be used as a framework for the activities of the chapter.

For the TI-M members, Exco and Secretariat, this Strategy will be an essential guide to direct

the design and prioritising of the chapter’s work and to determine how the resources will be

allocated to the various strategic priorities and programmes.

The Strategy will provide the stakeholders with information and insights on what TI-M aims

to achieve in the fight against corruption. It will also help identify areas of collaboration, to

work together with others around common aspirations, goals and interests.

TI-M adopted its first strategic plan for the 2004-09 period, which enhanced the

effectiveness of the organisation at multiple levels. TI-M achieved a higher public profile,

better representation, increased funding, staff development and better media coverage

compared to the period before the strategic plan was adopted.


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3. DEVELOPMENT OF THE STRATEGY

This Strategic Plan (TI-M SP2012-2015) is being prepared in accordance with the TI Strategy

2015.

The SP 2011-2015 document has been prepared after taking into account:

· Three preparatory sessions by the Task Force that was established to coordinate the

TI-M SP2012-2015.

· Two TI-M EXCO Strategy Retreats on 16 November 2011 and 14 January 2012.

· Several post Strategy meetings, and

A survey conducted among 43 stakeholders comprising funders, TI-M members and

employees, selected NGOs and members of the public to assess the organisation’s

strengths, weaknesses, opportunities and threats (SWOT).

We will engage with people more widely than ever before – for ultimately, only people

can stop corruption. - TI Strategy 2015

People engagement in protecting the environment


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4. INTRODUCTION

Corruption, which TI defines as the abuse of entrusted power for private gain, is a complex

phenomenon that affects all societies. It includes bribery, extortion, fraud, undue pressure

or influence and collusion/ anti-competitive behaviour. Growing public awareness and a

better understanding of corruption, supported by TI’s research and advocacy have led to a

deeper appreciation of the true scale and scope of the problem.

Corruption destroys human development, breeds social, economic and political crises, traps

millions in poverty, hunger and misery, disrupts law and order, undermines democracy,

distorts trade and fosters the exploitation of natural resources. At its most extreme, it can

even lead to the capture of the state itself, whereby powerful individuals, institutions,

companies or groups use corruption to shape a whole nation’s policies, legal environment

and economy to serve their own private interests. As a result, the responses to corruption

need to be multi-pronged to address their multiple root causes.

It is undeniable that corruption has become systemic in Malaysia. Malaysia’s ranking in the

TI Corruption Perceptions Index (CPI) has been on the decline. In the 2011 CPI, Malaysia

scored 4.3, slightly lower than the 4.4 recorded in 2010. This was a drop of four places from

56th in 2010 to 60th spot in 2011, the third consecutive year it had dipped. The current

strategic plan (SP2012-2015) is a recognition of the need to sharpen TI-M’s focus, prioritise

its targets and expand the scope of its anti-corruption work. This is in line with the TI-S

global strategic plan initiative (SP2015) which is being undertaken in TI chapters worldwide.

4.1 The Context

To set the future direction for TI-M’s work and to increase its relevance and responsiveness

in the Malaysian context, an analysis of the political, economic, socio-cultural, technological,

environmental and legal factors is necessary.

Political – The political dimension of corruption is extensive, involving the control of

resources, access to business and the distribution of wealth and opportunities, among other

things. Corruption has become a prominent election issue in Malaysia, being among the top

factors cited by voters for dissatisfaction with the government in the 12th general election in

2008. The Government has made the fight against corruption a key performance indicator

under its Government Transformation Programme (GTP). The federal opposition front, the

Pakatan Rakyat, which controls four states, has also made the fight against corruption a key

platform of its state administrations.

There are many restrictions on the political space that make meaningful participation in

public life challenging.


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Economic – Economic issues go to the heart of corruption, as problems like income disparity

and low incomes which make it difficult for people to make ends meet fuel corruption.

However, a government survey to mark the first anniversary of its transformation

programme shows that petty corruption has been reduced. The issue of grand corruption is

more serious as it diverts development funds from the target groups that need to improve

the quality of their lives.

Malaysia is a middle income country with a per capita income of RM28,000 (US$9,000).

However, 40% of the population has a monthly household income of RM1,440 or less (2009,

10th Malaysia Plan), making them both victims of corruption as well as vulnerable to it.

State capture in the distribution of economic opportunities is a large issue that has major

impacts on the people’s welfare. The nexus between business and politics needs to be

addressed.

Corruption is also closely linked to, and often a driver of, major threats of our time, from

organised crime to human trafficking and illegal trade, to name but a few. Governance gaps

combined with the commitment of huge amounts of resources also make corruption a risk

in several key social, economic and environmental policy areas, from climate change to

humanitarian assistance to poverty reduction and the achievement of the Millennium

Development Goals.

Socio-cultural – The battle against corruption cannot be won without addressing the socio-

cultural aspects of the issue. The pursuit of conspicuous consumerism as a factor driving

corruption needs to be understood and the role of value systems and codes of ethics and

integrity in regulating behaviour effectively used to shape anti-corruption efforts.

Malaysia’s civil society has played an important role in drawing attention to the problems

faced by the people as a result of issues related to governance, including corruption. These

include the privatisation of state assets and utilities resulting in higher costs to the public. As

in other developing countries, civil society organisations focused initially on charitable work

and social services, then more on community development and now increasingly on

politicised issues such as the environment, civil liberties and good governance.

As a result of rapid industrialisation and the development of a consumer society, consumer

organisations such as the Consumers Association of Penang, the Federation of Malaysian

Consumer Associations and the Education and Research Association for Consumers (ERA

Consumers) since the 1980s have been the battleground for a wide range of issues including

abuses in the market place, weak regulations, unscrupulous traders, pollution, poverty and

citizenship rights. Undeniably the consumer movement played an important role in the

development of civil society in Malaysia.


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Among the earliest work on good governance and corruption was that undertaken by the

social reform movement Aliran in the 1980s. In the 1990s and 2000s, the workers’ rights

group Tenaganita through its work on migrants/human trafficking has raised corruption

issues related to labour migration. The environmental movement has also highlighted

significant corruption issues. For example, the massive Bakun Dam, which has been

described by TI as a “monument to corruption” raised numerous issues concerning

corruption.

Since 80s, civil society groups had identified through their work corruption, abuse of power

and poor governance as a factor in the loss of forests, abuse of migrant workers,

marketplace abuses, decay of national pillars of integrity such as the judiciary and the

increasing power of the executive.

TI-M in the last decade has been recognized as an NGO involved in the fight against

corruption particularly in relation to corruption indexes.

More recently coalitions such as Bersih 2.0, have begun to play important roles in advocacy

related to good governance and corruption.

A concerted effort needs to be made to ensure that abuse of power and corruption do not

dissipate public resources, which should be monitored and governed with utmost care to

prevent them from being siphoned out of the State. Activities against corruption and money

laundering need to be further enhanced to enable the institutions of governance to detect

and correct such abuses. Political representatives and government bodies should remain an

arm’s length away from business activities that they may influence.

Technological – In these times, technologies that encourage transparency, information

exchange and monitoring need to be harnessed as tools in the fight against corruption.

Examples are the role of social media in exposing corrupt behaviour and Google Earth in

public monitoring of forestry governance. Technology creates pressure on government

agencies to act on problems in public service delivery, including corruption, by improving

public access to information and also creates the need for a responsive system for finding

solutions.

Environmental – The solutions that are developed to mitigate environmental problems

need to be carefully evaluated to ensure that they are effective and do not result in

wastage. Efficient usage of water and land resources, for example, will minimize pollution

problems and costs. For the environment to be safeguarded, the people’s quality of life and

basic needs have to be met as the environment is often ignored when basic needs are not

met. The drive towards a zero waste society can also enhance awareness of wastage

through corruption. In addition, the incremental costs of environmental services need to be

monitored to optimize resource use. Also, sustainable governance of the environment

needs to be practiced diligently. Trans-boundary and regional environmental issues need to


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be well understood for common solutions to be adopted for better governance and control

resource use in the region.

Media – The role of a free and independent media is central to generating awareness of

corruption and mobilising public support for anti-corruption measures. The Fourth Estate,

on par with the Executive, Legislature and Judiciary is a crucial ally of TI in the war against

corruption. The principal vehicle for bringing information to the people is an independent

and free media. Given the corporate and political control over the media in Malaysia, TI-M

faces formidable challenges in its work.

Legal – Although some new legislation have been introduced, e.g. the Malaysian Anti-

Corruption Commission Act and the Whistleblowers Act, there are weaknesses that need to

be addressed. Although Malaysia had ratified the UN Convention Against Corruption in

2008, it has yet to be implemented.

The extent of abuse of power by politicians is reflected in several corruption cases being

brought to court. Examples include the former Selangor Menteri Besar Datuk Seri Dr Khir

Toyo who was convicted in 2011 of corruption in the purchase of a mansion and the case

of a former Transport minister in the case of the Port Klang Free Zone scandal . The

National Feedlot Corporation controversy involving a RM250 million soft loan from the

government is currently the subject of investigations.

The absence of a Freedom of Information Act impedes the pursuit of accountability. The

right to know is linked inextricably to good governance. The rampant use of the Official

Secrets Act to muzzle civil servants is a strong deterrent for disclosure in the public interest.

4.2 External Trends that Will Impact the Anti-Corruption Work of TI-M

Current political trends indicate that corruption may get worse as governance issues

continue to surface.

Growing economic disparity, which the government itself has acknowledged, will tend to

drag down efforts to strengthen governance because of the reduced financial resources

available.

The global financial crisis may lead to the reduction of funding for anti-corruption work.

Other civil society organisations may make the fight against corruption a bigger part of their

work, and because of their visibility arising from their advocacy strategies, may dilute the

impact of TI-M.

The growing trend to focus on anti-corruption efforts may create new opportunities for TI-

M to engage in coalition building through new ways to mobilise support for anti-corruption

advocacy.


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The continued ownership of the media by ruling parties suppresses media freedoms which

form the cornerstone of civil liberties that are essential in the fight against corruption. This

role of the media has to be restored for it to be an effective partner in anti-corruption

campaigns.

The decline in Malaysia’s ranking in the TI CPI will tend to affect foreign direct investments

into the country as investors tend to select countries that show good governance through

practices such as open tenders.

Development that is not accompanied by equity will tend to undermine the functioning of

society as marginalised groups come under pressure. This will affect rule of law and make

governance more difficult.

Transparency and accountability issues in climate change finance and policy making offer

opportunities for TI-M to undertake anti-corruption advocacy work. Monitoring mechanisms

and enforcement measures such as the Certification Process and REDD+ mechanisms can

play an important role in enhancing the regulation of the timber trade and the sustainability

of the forest sector. Regional cooperation towards solving trade issues especially

consistency in import and export laws is also crucial.

4.3 SWOT Analysis

In order to decide on the strategic options and choices for TI-M for the 2012-15 period, an

examination of the critical strengths and weaknesses of the chapter is imperative. TI-M’s

work in the last five years has brought about a number of positive changes. There was

constant engagement with the government, sustained visibility, an improvement in TI-M’s

reputation and core and project funding which strengthened the human resource capacity

of the organisation. Donor institutions and foreign embassies provided support for

numerous activities.

However since 2010, core funding has been significantly reduced due to a policy shift by a

principal funder in favour of project funding.

In 2010 and 2011, TI-M’s major projects were Forest Governance Integrity (FGI) and

Reforming Political Financing (PF). TI-M has undertaken one new project in 2011, namely

the Business Integrity Programme (BIP). Grants from various stakeholders were secured for

the BIP project. The pioneering research in PF resulted in two important outputs. A

memorandum on reforming political financing in Malaysia was submitted to the Prime

Minister. Also, TI-M made a submission on electoral reforms to the Parliamentary Select

Committee on Electoral Reforms.

Through the FGI, TI-M was able to undertake work in Sabah and Sarawak, where corruption

in forestry has been reported to be a major concern. The international concern over the loss

of natural forests through the building of dams and expansion of plantations makes this a


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very important project. Also, the loss of habitat and livelihood of indigenous communities

raises questions about the standards of governance in the sector. The project enabled TI-M

to engage with foresters, government officials and academia. Advocacy work as well as

training of enforcement officials has been undertaken. The FGI project secured full funding

for its activities in 2011 from the Royal Norwegian Embassy.

Several challenges remain in developing a strong strategic thrust to drive the organisational

development of TI-M, to which the other major concerns are linked. For example, the

human resource capacity of the organisation has to be substantially improved and the

sustainability of funding needs to be addressed, given the 67% reduction in Petronas’ grant

for core funding for the thee-year period from October 2010-September 2013.

In order to evaluate the effectiveness of TI-M’s work, it conducted a survey in 2011 among

selected stakeholders to assess its strengths, weaknesses, opportunities and threats

(SWOT). The 43 respondents comprised funders, TI-M members and employees, selected

NGOs and members of the public.

According to the respondents, among TI-M’s strengths are its independence, engagement

with government, global network, brand, secretariat, leadership and TI-S support. Its

weaknesses include its low profile, weak engagement with the public, media relations,

communications and publications work, financial position and intellectual expertise. The

opportunities available to TI-M include joint research, holding forums and dialogue sessions,

profiling corruption as a national agenda, engaging the future generation and undertaking

collaboration with academics. Among the threats facing TI-M is the environment for civil

discourse, which is not conducive to achieving change in the corruption situation. Another

threat is the perception that the working relationship of TI-M with the government is too

close and may compromise its independence.

In its strategic plan, TI-M needs to take cognizance of the survey results to address the

highlighted issues.


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5. TI-M VISION & MISSION AND CORE VALUES

5.1 Vision & Mission

TI’s understanding of corruption – ranging from petty corruption to state capture – enables

the movement to raise awareness and critically but constructively engage with all

stakeholders from civil society, government, the private sector, professional bodies and

academia. TI’s strong reputation among stakeholders globally enables it to create political

pressure for anti-corruption action and promote collective action for transparency,

accountability and integrity systems at the local, national and international levels.

At the Strategic Plan retreat, the existing TI-M vision and mission statements, which were

formulated in 2004, were reviewed. It was felt that the statements are still relevant but

require minor improvement. As a result, participants at the retreat proposed a new vision

and mission.

TI-M’s Vision: A Nation FREE of CORRUPTION

TI-M’s Mission: To eradicate corruption and promote transparency, accountability and

integrity throughout society.

5.2 Core Values

The five Core Values are:

1. Justice

2. Integrity

3. Transparency

4. Accountability

5. Courage

One cannot protect democratic freedoms and human rights without addressing

corruption. And one cannot end corruption without working towards democratic

accountability and respect for human rights.

- TI Strategy 2015


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6. STRATEGIC PRIORITIES

TI Strategy 2015 embarks on the new strategy by holistically pursuing its work with people,

institutions, laws and values. As a Movement, TI will work together with others over the

next five years to achieve its vision and mission. It has identified six Strategic Priorities for

the TI Movement over the next five years. (See figure)

The six Strategic Priorities are People, Institutions, Laws, Values, Impact and Network. At the

TI-M retreat, participants decided to focus on People, Institutions and Impact in executing

TI-M Strategy 2012-15.

6.1 People

TI-M will take a people-centred approach in its programmes to stop corruption at the local

and national levels. It will engage people around specific anti-corruption related issues, e.g.

the Forest Watch Project and through coalitions like the Business Integrity Programme. To

involve people, TI-M will establish a volunteer management system with the aim of

mobilizing people for its programmes and activities. New information technologies,

including social media, will be used to enable people to assess and monitor corruption and

demand good governance. Social media would serve as a forum for discussions, information

and whistle-blowing on issues of transparency, accountability, ethics and cases of

corruption. (See www.timalaysia-forestwatch.org.my)

6.2 Institutions

TI-M has engaged with oversight bodies such as the Malaysian Anti-Corruption Commission,

Election Commission, ministries like the Ministry of Natural Resources and the Environment,

Ministry of Defence and Ministry of Finance, state governments and local authorities. These

institutions must be held accountable for the enforcement of anti-corruption programmes.

TI-M will promote anti-corruption tools like the Integrity Pact to both the public and private

sectors, including government-linked companies. ISO-type standards and best practices in

relation to strengthening anti-corruption and transparency standards will be advocated.

6.3 Impact

TI-M, through its engagement with the public and private sectors, media and civil society

will enhance its anti-corruption impact. It will build its core structural, managerial, research

and financial capacities through a four-year organisational development plan to be able to

engage in the most critical corruption issues in the country. This will ensure its relevance

and legitimacy as an effective anti-corruption organisation in the context of the political

economy of the country.

http://www.timalaysia-forestwatch.org.my/


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7. ORGANISATIONAL DEVELOPMENT & KEY PROGRAMMES

The first strategic plan has produced some positive results, including increased sources of

funding and the recruitment of key personnel, e.g. an executive director and project staff.

Also, strategic initiatives were adopted in a number of key areas, evolving into a number of

significant programmes. The Integrity Pact is increasingly being acknowledged as an anti-

corruption tool by the government and private sector. Conferences, and training on public

procurement, political financing, forest governance and the right to information campaign

have been organised. In addition, publications have been produced on several of these

issues.

Among the outcomes achieved were strengthened membership development and

engagement with government, towards policy reforms in such areas as political financing. In

order to effectively implement the SP2012-15, attention will need to be given to systematic

organisational development.

The key programmes identified for the SP2012-15 period are:

Forest Governance and Integrity

Business Integrity

Public Sector Integrity

Reducing Corruption and Raising Transparency in the Defence and Security Sectors in

the ASEAN Region

Reducing Corruption in Labour Migration

Advocacy and People Engagement


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7.1. Organisational Development

The organisational development will require building the capacity of TI-M and engagement

on multiple levels. This includes broadening the membership base, developing effective

public and media relations, organising a signature annual event, working with the public

sector, mobilising resources and building coalitions. TI-M’s reach will be expanded to

include activities in Sabah and Sarawak.

7.1.1 Strategic Initiative: Human Resource Development

Prepare a four-year TI-M organisational development plan that will include the

implementation of a human resource development programme.

1. Establish a core group of professional staff members to realise the Strategic Plan.

Executive Director

Senior Programme Officer

Programme Officer

Administration and Finance Officer

Communications Officer

Research Officer

In addition, project staff will be engaged in accordance with project needs

2. Establish a training programme for all staff and covering essential areas, including

communications and writing skills.

3. To realise the goals of the strategy it will be essential to make greater use of

volunteers, including drawing on the expertise of TI-M members and Exco.

4. The growth in the TI-M secretariat staff members will come from the key programmes


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7.1.2 Strategic Initiative: Resource Mobilisation and Sustainability Programme

Rationale TI-M needs resources, both financial and non-financial, to be effective and sustainable.

Goals A sustainable future with long-term core funding to realise the Strategic Plan 2012-2015

Objectives 1. To raise long-term core funding 2. To increase the diversity of the sources of funds 3. To engage the Members, Exco, Secretariat and supporters in the mobilisation of

financial resources 4. Capitalise on non-financial resources 5. To aspire for the highest standards of accountability to stakeholders

Start Date 2012

Personnel: Exco will be responsible for resource mobilisation

Programmes: 1. Develop an action plan for resource mobilisation, including a marketing plan 2. Develop a TI-M policy on resource mobilisation 3. Develop a donor education module to help donors understand why they should support

the war against corruption

Funding: RM10,000 per year


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7.1.3 Strategic Initiative: Membership Drive

Rationale As an organisation that aims to serve society by eradicating corruption, a membership that

reflects a broad cross-section of the population will enhance its legitimacy. The organisation

should strive for gender balance in its membership because of the crucial role that women

play in fighting corruption. The youth, who are future leaders, must be engaged in anti-

corruption programmes in order to achieve systemic change.

Goals 1. Expand the categories of membership to attract a broader cross-section of society 2. Attract more women and youth to join TI-M 3. Increase the number of members to generate higher subscription revenue

Objectives 1. To widen the base of support for TI-M’s Strategic Plan 2012-2015 2. Improve the gender and age balance in TI-M’s membership 3. Provide access to expertise 4. Improve the financial stability of the organisation.

Impacts/ Risks The risks that need to be mitigated from this initiative is the possibility of organisational

capture and the dissipation of resources. The increase in membership fees from 2012 may

result in the resignations of some of the existing members.

Start Date July 2012

Personnel The resources required will include the Exco members’ time and secretariat support.

As membership develops an administrative officer from the secretariat will be responsible

for membership relations.

Programmes 1. A membership drive will be undertaken, with Exco members designated to focus on

specific sectors to promote membership. 2. To improve communication with members, regular circulars will be produced and hard

copies sent to members to keep them updated on TI-M activities, encourage participation and for information-sharing on anti-corruption issues.

3. Organise regular (quarterly/half yearly) meetings/get together with members to foster camaraderie and dialogue on TI-M's activities and topical issues. Have a guest speaker where appropriate.

4. Provide a questionnaire and feedback form on the website (restricted to members only) to gauge members expectations of TI-M and what/how they can contribute.


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Funding 2012: RM 20K; 2013 – 2015: RM 40K per year

Total: RM 140K over 4 years

7.1.4 Strategic Initiative: Communications

Rationale In the survey for the SWOT analysis, respondents have identified engagement with the

public as one of the weaknesses. Coverage of TI-M press releases in the mainstream media

is lacking. Media coverage in the mother tongue languages should be improved. The new

media is a growing force for change and can be utilised to make TI-M’s work more effective.

Goals 1. Increased engagement with the public, including in locations outside the Klang Valley 2. Improved coverage of TI-M activities in the mainstream media and mother tongue

media 3. Leverage on social media to reach the general public with TI-M's message 4. Increased public education on anti-corruption measures 5. Building public integrity and social responsibility towards an ethical society 6. Encourage media collaboration and partnership for effective information sharing.

Objectives 1. To enhance TI-M’s engagement with the public and media by reaching out to traditional

and new media. 2. To improve visibility, communicate messages and improve the quality of

communications.

Impacts/ Risks Impact: Better relationship with and coverage by local media especially mainstream media.

Greater awareness among the public of TI-M

Risks: TI-M's message is still viewed by mainstream media as being too critical of the

government, resulting in little/skewed coverage with minimal impact. More resources will

be needed to organise events outside the Klang Valley.

Start Date July 2012

Personnel A communications officer will manage the range of activities for public and media

engagement.


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Programmes 1. Develop a communication strategy for TI-M 2. Enhance the effectiveness of the TI-M website 3. Engage with the new media (social media) 4. Explore feature articles, letters to the editor in the mainstream media. 5. Develop TI-M’s media database 6. Include East Malaysia in TI-M’s outreach and media programmes 7. Undertake capacity building for project staff 8. TI-M to develop its publication work 9. Members and staff to generate articles 10. TI-M members and Exco to write regular columns for print/online media 11. Increase the number and range of TI-M publications

Funding 2012: RM 100K; 2013: RM 120K; 2014: RM 100K; 2015: RM 100K

Total: RM 420K over 4 years (to review)

7.1.5 Strategic Initiative: Conferences and Seminars

Rationale: A signature seminar/conference is a highly effective way to create outreach about the

organisation and its objectives, raise public awareness and to make public the findings of

research projects.

Goals 1. To enhance TI-M’s brand presence and attract funding to the organisation 2. To highlight successes and best practices in the war against corruption from the

experiences of the global community 3. To focus attention on pressing problems involving corruption

Objectives To highlight the work of TI-M and other anti-corruption organisations and raise its profile

among the public and potential donors

Start Date One conference per year on a compelling theme

Personnel Existing project and secretariat staff

Programmes A working paper on the annual signature conference will be developed to guide the project


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Funding (to be reviewed) 2012 - 2015: RM 30K per year


7.1.6 Strategic Initiative: People Engagement (Local Authorities)

Rationale Local authorities impact the lives of the ordinary people in very direct ways. There is a

crucial need to organise people to participate in the planning, implementation and

evaluation of projects designed to help their physical quality of life which may be

compromised by corruption.

Working with local authorities provides opportunities for increased empowerment of

people to act against corruption. Therefore the prevention of corruption in local

governments will produce tangible benefits for communities.

Goal 1. Engage with local authorities that are responsible for providing basic services to the

people, for raising public consciousness and mobilisation. 2. Empowering the people to hold local authorities accountable.

Objectives 1. To show how implementing anti-corruption measures and standards can have direct

benefits for rate-payers. 2. To encourage local authorities to adopt anti-corruption and transparency standards.

Programme Promote a programme on corruption issues affecting rate-payers to a local authority and its

residents associations, to involve large numbers of people to fight against corruption

affecting their community.

Start Date 2012 – Identify a local authority in the Klang Valley to initiate a pilot engagement

programme between a local authority and its residents associations.

2013 – Replicate the engagement programme with 2 other local authorities (one outside

Klang Valley)

2014, 2015 Replicate the engagement programme with more local authorities


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Personnel Employ and train staff specifically to provide training in the implementation of anti-

corruption tools in local authorities.

Funding (to be reviewed) 2013: RM 150K; 2014: RM 300K;


7.1.7 Strategic Initiative: Coalition Building and Networking

Rationale Coalitions add diversity and strength in numbers and encourage large numbers of people to

participate in the fight against corruption. Anti-corruption efforts will be incorporated into

the work of the coalition partners, providing new opportunities for collaboration.

Goals Establish coalitions based on issues that TI-M is working on. TI-M should be a leader in the

coalitions it is involved in.

Objectives Coalitions will strengthen the anti-corruption voice.

Coalition building with oversight institutions including the Malaysian Anti Corruption

Commission, Institute of Foresters Malaysia and Forestry Departments to enhance anti

corruption measures.

Sustain coalitions through regular monitoring, evaluation and reporting

Programmes Build coalitions based on the programmes that will be implemented under the Strategic Plan

2012-2015

Start Date 2012

Personnel Programme staff

Funding (to be reviewed) 2013 – 2015: RM 30K per year



Working Document

21

7.2 Programmes

7.2.1 Forest Governance Integrity (FGI) Programme

Background The research findings of the FGI Programme indicate that corruption in the forestry sector needs to be addressed with more effective measures by the relevant agencies. Most workshops and conferences tend to only provide information on activities and outcomes but little emphasis is placed on remedial measures, thus leaving the situation without improvement. Risk analysis of the controls in critical areas of forest resources need to be carried out on a more regular basis. Findings need to be communicated to the necessary stakeholders . The relevant agencies such as the State Forest Department must put in place the necessary anti corruption measures. The measures include open tender processes and transparency in the award of concessions to royalty, among others. The annual allocation and allowable extractions of timber volumes need to be well monitored and should not exceed the set annual volume. As environmental conditions depend on the state of the surrounding areas, the quality of the air and water in a locality will depend on the amount of forest cover. This is determined on land use policies of state governments. TI-M should adopt sustainable funding strategies to prevent projects from coming to an abrupt halt due to the non-availability of funds. Mitigation Advocacy for mitigation of corruption in forest governance should be well focused and priority given to measures that provide the best results and benefits to the nation as a whole. Mitigation efforts should be done in a collaborative manner with multiple partners. Collaboration and Networking The diagram below illustrates the current collaborations and the network that has been developed through the FGI programme. The success of the FGI project will very much depend on the collective actions undertaken with partners and relevant agencies.


Working Document

22

Rationale The Forest Anti-Corruption Advocacy Project and the Forest Governance Systems Analysis and Monitoring forms the foundation for all future TI work in combating corruption in the forestry sector. This findings includes the establishment of offices in states identified as high risk areas, project management training, corruption risk maps and monitoring tools for the forestry sector and the timber trade, formation of influential networks and access to government agencies and information. A forestry team under the FGI project, comprising over 20 TI officers in the region, has been trained in anti corruption measures for the forestry sector. Goal To advocate for the relevant agencies to curb corruption in the forestry sector and reduce illegal / unsustainable deforestation To strengthen and enhance forest governance systems in Malaysia and in the Asia Pacific.

Ministry of

NRE

Dept. of

forestry Public

Professional

bodies

Malaysia

Anti-

Corruption

Commission

Transparency

International

Malaysia

NGOs


Working Document

23

Objectives 1. To ensure that the human resources, knowledge, technical skills and networks

developed so far in the FGI project in Malaysia are not lost and continue to be used to push for improved transparency, accountability and integrity of forest governance institutions dealing with forest resource management. (This includes forest assessments, protected area management and forestry certification schemes.

2. To make the tools developed in FGI Phase 1 more accessible, and to disseminate them to a wider audience.

3. To build the capacity of civil society groups to monitor REDD+ related operations, activities, and programmes that are being developed for Malaysia and ensure improved transparency, accountability and due diligence practices in REDD related financing, and certification.

Programmes To implement the FGI programme for 2012-2015, the following key findings of Phase 1 of the FGI project need to be considered: Major Activities 1. REDD+ Anti corruption Tools development

- Anti Corruption tools for REDD+ National Strategy 2. FGI- Forest Watch Project.- Collective approach in monitoring forest cover.

- NGO, Monitoring Agencies and Public in Monitoring Forest cover in Malaysia. - Engagement with higher education and professional bodies to look into sensitive

areas throughout Peninsular Malaysia. Development of a public education and monitoring plan in fighting corruption in the forestry sector. Public education on forest protection and anti corruption in forestry

3. Review of National land use policies and implement anti corruption mechanisms - Review and recommend changes to the Land use policy and instilling anti

corruption safe guards. 4. Review of Land Capability Classification Survey

- Review of land use classification document and recommend the necessary changes and safeguards.

5. Advocate anti corruption measures through the implementation of Preparation of concession Areas - Enhance operational conditions with regards to the issuance of logging licenses

Funding and Finance requirements This strategic plan looks at funding requirements of about RM 900,000/= annually for the next 4 years. The cost will also cover an operating office each in Sabah and Sarawak.


Working Document

24

Forestry Forum

Public Awareness Campaign

Stakeholders training workshop


Working Document

25

Forest Governance Integrity (FGI) Programme

Activities Timeline

2012 2013 2014 2015 Time Frame Budget(RM,000)

Project management

1. National REDD+ Anti corruption Tools development. ( In- progress)

12 months 300

2. FGI- Forest Watch Project.- Collective approach in monitoring and reporting forest cover changes

36 months 900

3. Development of a public education and monitoring plan in fighting corruption in the forestry sector

36 months 900

4. Review of National land use policies and implement anti corruption mechanisms

33 months 500

5. Review and recommendations on Land Capability Classification Survey Documents

12 months 500

5. Advocate anti corruption measures

through the implementation of pre-

preparation of concession areas and

other relevant planning before issuance

of concession licenses

30 months 500

3,600

26

7.2.2 BIP Delivery Unit

STRATEGIC INITIATIVE: Promote implementation of anti-corruption standards and practices

by commercial operations and government institutions in Malaysia

Introduction Recent corporate scandals and crises in the financial sector have raised public awareness of

the importance of responsible corporate governance. Alongside this, intolerance of

corruption is intensifying as the international community increases and strengthens laws

and regulations to will leave corruptors open to a greater risk of civil and criminal

prosecution. In this environment of change, more private and public actors now have both a

financial and reputational stake in creating a business culture that is free from corruption.

Rationale The Business Integrity Programme (BIP) Delivery Unit responds to the trends above, which

are both international and local. It has been developed to accelerate cultural change in the

private sector by promoting business integrity, which it does by delivering measurable anti-

corruption standards and practices. It was created with the intention of facilitating and

coordinating the work of Transparency International Malaysia (TI-M) in advocating zero

tolerance of corruption in corporate governance.

The BIP Delivery Unit engages with private and public sector stakeholders, including state

enterprises, private sector companies, Government-linked Companies (GLCs) and Small and

Medium-sized Enterprises (SMEs). By employing a wide range of tools, including Integrity

Pacts (IPs), the creation of coalitions and the implementation of Corporate Integrity Systems

(CIS), the BIP Delivery Unit promotes good governance and the business case for operating

with zero tolerance of corruption. To this end it also provides integrity services on a fee-

paying basis.

Goals 1. Bring about change in corporate governance to recognise the value to business of

operating with a zero tolerance of corruption

2. Move towards TI-M self-sufficiency and revenue generation as a result of the services

provided by the BIP Delivery Unit.

Objectives (specific) 1. To be an effective and trusted partner for enterprises seeking to do business free from

corruption.

2. Deliver up to 16 corporate integrity projects across the state-owned enterprises, GLCs,

Public-Listed Companies (PLC)s and SMEs sectors, based on TI’s 6 step process.

27

3. Develop courseware and modules on the vital components of the CIS and offer these

training modules to private companies.

4. Provide transparency at every step of the contracting process through a legally binding

no-bribe agreement, with sanctions for any breaches.

5. Promote merit-based government procurement by encouraging culture change in the

public sector through conferences and awareness campaigns.

6. Bring about legislative changes so that good governance is encouraged and penalties

are imposed for non-compliance with anti-corruption laws. Specifically legislative

changes to the Malaysian Anti-Corruption Act, Companies Act, Whistle-blowers

Protection Act and Anti-Money Laundering Act.

Programmes 1. The delivery of the CIS project to state-owned enterprises, GLCs, PLCs and SMEs. In the

period from 2012 to 2015 the goal is to deliver CIS projects to four of each company

category above, resulting in sixteen completed projects.

2. The provision of integrity training courseware for specific high risk company

departments and industries. Departmental integrity training will focus on high risk areas

of sales, procurement and HR. This will include policy templates, research documents,

access to risk analysis facilities and sectoral briefing documents. Industry-specific

courseware will be made available for the oil and gas, automotive and public works

sectors.

3. Conferences are a good method of spreading awareness of the movement towards a

culture of business integrity, and also alerting people to the business case for integrity.

They are also an opportunity to publicise the work of TI-M and the resources it makes

available. It is planned that the BIP Unit will organize two conferences per year.

Proposed themes and topics to include the business case for standing up to corruption

and the changing environment of international corporate governance and anti-

corruption legislation.

4. The creation of coalitions against corruption are a good way of mobilizing public

support and momentum to effect changes in corporate governance, as coalitions create

strength from their numbers and mutual support, where SMEs and individuals might be

weak to resist the challenges of corruption alone. The BIP Unit therefore hopes to set

up two coalitions in the coming year.

5. A long term goal of the BIP Unit is to create an Asia-Pacific Regional Centre for BIP

services in Kuala Lumpur, to provide training services for the region. As the centre

grows and develops its capacities it will be able to provide various consulting and

advisory services on the anti-corruption corporate governance issues of companies

operating in the region.

6. Another long term goal is to facilitate legislative change to make companies, rather

than the individuals, responsible for staff activities. This legislation, which forms part of

the UK Anti-Bribery Act, is a highly effective method of enacting changes in corporate

28

governance and culture towards corruption, because by making those at the top liable

for their staff’s actions, they have their own interests invested in ensuring that their

company operates with zero tolerance of corruption.

Road Map for the Private Sector

Institution-building The work of the BIP Delivery Unit greatly contributes to strengthening the TI-Malaysia

Chapter as a whole by targeting specific weaknesses that have been highlighted within the

institution. Specifically, the activities of the BIP Delivery Unit contribute to raising the profile

of TI-M by sending staff to represent the organization at various high profile events, which

provides opportunities to forge links with public and private sector stakeholders in the anti-

corruption movement. Such events in February 2012 have included the launch of Companies

Commission Malaysia (SSM)’s Best Business Practice Circular and the National Procurement

Forum for the Public and Private Sector organized by Institute of Integrity Malaysia (IIM) and

Malaysian Institute of Corporate Governance (MICG).

The BIP Delivery Unit has also been raising the profile of TI-M by engaging with respected

print and broadcast media, thereby reaching out to the wider public. The business case for

integrity and anti-corruption has been championed regularly with interviews of senior BIP

Delivery Unit staff on BFM and in various newspapers.

The work of the BIP Delivery Unit addresses a key weakness of funding by generating

revenue by charging for various business integrity services. By providing risk-mapping,

29

training and anti-corruption consultation to private and public sector corporations, the BIP

Delivery Unit has the potential to expand and generate funds for the entire TI-M chapter.

In addition, this revenue generation means that the BIP Delivery Unit can have the

resources to attract high quality staff. This will support high quality services and expand the

intellectual expertise of TI-M as a whole.

Engagement with Institutions The BIP Delivery Unit engages with various Malaysian institutions in its work. TI-M is a

member of the Integrity Roundtable, affording the team the opportunity to engage with

institutions such as Malaysian Anti-Corruption Commission (SPRM), Bursa Malaysia, SSM

and IIM, alongside high profile corporations such as TM and Sime Darby. The BIP Delivery

Unit is also working with SPRM on another project to generate guidelines for whistle-

blowing protection in the private sector; and the IIM in a strategic partnership to promote

changes in corporate governance.

In November 2011, the BIP Delivery Unit organized a conference jointly with the Federation

of Malaysian Manufacturers (FMM) to promote the business case for integrity. The

conference successfully obtained the support of SPRM, which sent representatives to speak

on the value of standing up to corruption in business.

The BIP Delivery Unit also works in conjunction with Performance Management Delivery

Unit (PEMANDU), as a strategic partner to facilitate the establishment of various initiatives

in the public sector.

Finally, the BIP Delivery Unit is engaging with SPRM and the Construction Industry

Development Board (CIDB) in its core activity of setting up a coalition against corruption in

the construction sector.

30

Achievements to date Research and Documentation

- Successful completion of the first pilot CIS with Thumbprints United, a Malaysian

printing & packaging company, in November 2011.

- CIS services deployed to two state enterprises on a grant basis: Kumpulan Semesta

Sdn Bhd (KSSB) and Perbadanan Kemajuan Negeri Selangor (PKNS).

- First draft of anti-corruption policy templates for SMEs completed.

Submissions

- Submission of proposal for SME Corp-based coalition against corruption and initial

discussions.

- Briefing paper and strategy outlined for the creation of anti-corruption coalitions in

the construction and the SME sectors.

Presentations

- Presentation to Proton’s Group Procurement Division on the topic “Fighting

Corruption in Malaysia”. The presentation included the definition and effects of

corruption, results of TI’s various indexes and an overview of the Integrity Pact (IP).

- Joint Integrity Conference held with Federation of Malaysian Manufacturers (FMM)

on 10 November 2011: Making Business Sense from Integrity. A total of 34

participants heard the case for business integrity from speakers from the SPRM, TI-

M, private sector companies and high profile government ministers.

Representation

- Representation at bi-monthly Integrity Round Table discussions organized by

PEMANDU, including SPRM, IIM, Bursa, SSM, SME Corp, GLCs and other

stakeholders, establishing links with key players in integrity in Malaysia.

Intended Outcomes 1. Complete implementation of CIS in two state enterprises: PKNS and KSSB. Implement

CIS programmes with GLCs, private sector companies and SMEs.

2. Develop integrity training courseware for Sales, Procurement and HR; and industry-

specific courseware for Oil & Gas, Automotive and Public Works.

3. Build a resource pool of CIS trainers and create an Asia-Pacific regional centre for BIP

services (long term).

Impact / Risks Impact

1. Company operations and culture

- Initially, the BIP impact will be primarily within the organisations which are

funding integrity projects. Changes in their operations will drive out corrupt

practices from their procedures and begin to instigate a ‘clean’ culture.

31

2. Business climate

- In time, the change in culture happening internally within businesses will be

reflected in a change in the business and political cultures in general.

- Coalitions, Industry organisations, Government policies and other large-scale

movements will have the most impact on the business climate.

3. Legislative framework

- Changes will be accelerated by improvements in legislation, particular if

Directors are made personally liable for the actions of their companies.

Risks

1. Brand risk

Risk TI has a high quality brand, standing for truth, integrity and justice. By its very nature

the BIP work will involve engagement with companies where corruption is present. It

is therefore essential that the TI name is kept distinct from any companies where the

BIP is engaged, and the TI brand is not associated with client companies in an

unrestrained way.

Mitigation

Strict terms and conditions regarding the use of the TI name and logo by clients are a

necessity for BIP work.

2. Reputational risk

Risk TI is regarded as a professional organisation delivering high-quality work for its

sponsors. This would be jeopardised if the BIP were act with a lack of

professionalism, providing poor service and poor value for money.

Mitigation

The ethos of the BIP is to be maintained as professional, vigorous, timely and

effective. This involves the expectation of professional standards of behaviour by its

staff, including smart dress, high-quality documentation, meeting deadlines, use of

professional software and materials. Selective, merit-based recruitment is essential

for the maintenance of high quality staff and delivery of projects to time, quality and

specification.

Start Date May 2011

32

Personnel As the BIP Unit undertakes more projects, new staff members will be required to take on

the increased workload that this expansion generates. It is important to attract a high

calibre of person with a demonstrable desire to promote integrity and advocate anti-

corruption. Specifically, the BIP Unit anticipates the need for the following to manage

increased demand for services:

- Project managers, with 10 years’ work experience to manage the delivery of BIP

activities to corporations

- Project officers to assist the project manager (min. 3 years’ working experience)

- Junior project officers (2 years’ working experience)

- Interns

The number of staff required will be determined by the number and size of the projects.

Each project will fund its own staff, with the approval of the appropriate TI-M governance.

For other types of programmes, the following staff will be required as demand and funding

dictate and with the approval of the appropriate TI-M governance:

- Professional trainers

- Management staff to organize training courses, conferences, coalitions, government

liaison and other programmes as below.

- Administration staff to support the above and assist with the general running of the

unit and the TI-M organisation.

Funding Cost and income estimates per programme over period 2012-2015

1. CIS Programmes delivered to -

4x State enterprises

Cost estimate 400k

Income estimate 600k

4x GLCs

Cost estimate 400k


4x PLCs

Cost estimate 400k


4x SMEs

Cost estimate 120k


33

2. Courseware for integrity training + specific industries

Cost estimate: (50k + 150k) 200k

Income estimate: (200k + 300k) 500k

3. Conferences

Cost estimate: 240k

Income estimate: 250k

4. Coalitions against corruption

Cost estimate: 100k


5. Development of Asia-Pacific regional centre

Cost estimate: 300k


6. Facilitation of legislative change to make companies responsible for staff activities

Cost estimate: 50k

Income estimate 0k

34

Implementation Plan

Activities

Timeline

Time Frame

Costs*

2012 2013 2014 2015

1. CIS Programme: four state enterprises

4 years 400k

2. CIS Programme: four GLCs

4 years 400k

3. CIS Programme: four PLCs

4 years 400k

4. CIS Programme: four SMEs

4 years 120k

5. Development of integrity training courseware

2 years 50k

6. Development of industry-specific courseware

3 years 150k

7. Conferences 4 years 240k

8. Coalitions 3 years 100k

9. Development of Asia-Pacific Regional Centre

4 years 300k

10. Facilitate legislative change

4 years 50k

*The BIP Delivery Unit is revenue-generating, so it is anticipated costs will be covered by this income

35

7.2.3 Public Sector – Strategic Plan Document

STRATEGIC INITIATIVE: Promote implementation of anti-corruption standards and practices in Malaysia’s public sector

Introduction Corruption in the public sector obstructs the efficient delivery of public services, undermines

confidence in public institutions and increases the cost of public transactions. All of these

impact upon the wellbeing of society because ordinary people depend upon the timely

delivery of public services to carry out the majority of their routine daily tasks.

Integrity is essential for building strong institutions that are resistant to corruption, and it is

in the interest of every member of society that integrity forms the foundations of public

sector operations.

Malaysia is often vulnerable to corruption in public sector works, through political and

business avenues. Meanwhile the public is often unaware of these risks before it is too late.

Nevertheless, the rise of online news portals and social media has led to increasing public

awareness of the importance of responsible governance by elected representatives and civil

servants.

Rationale Transparency International has a long history of experience and expertise, operating

worldwide, to combat corruption in the public sector. Collectively, many TI chapters have

worked on the water sector, education, defence & security and health amongst many

others. TI-Malaysia also has experience in working with the public sector for greater

transparency through its work on governance in the forestry sector, and on the on-going My

Rapid Transit (MRT) project. The Business Integrity Programme (BIP) Delivery Unit is also

working closely with two GLC’s in Selangor, which have provided key learning’s for TI-M

about the political, social and economic risks of operating in the public sector.

The collective experience of TI-Malaysia and the TI chapters worldwide in public sector

projects, together with the importance of public sector projects to the wellbeing of society,

makes them a prime area of concern for TI-Malaysia. This initiative is intended to be self-

funding, with beneficiaries providing grants to the organisation.

36

Goals 1. Bring about change in public delivery system to recognise the value of operating in a

corruption free environment

2. Move towards TI-M self-sufficiency and revenue generation as a result of the services

provided by the initiative.

Objectives 1. Implement Integrity Pact System (IPS) in public works projects;

2. Deliver three major public works projects from 2012 to 2015;

3. Develop courseware and modules on the vital components of the IPS and provide

training to public servants

4. Provide full transparency at every step of a well-designed contracting process through a

legally binding no-bribe agreement, with sanctions for any breaches.

5. Be an effective and trusted partner for government agencies seeking to combat

corruption;

6. Promote merit-based government procurement by encouraging changes in corporate

governance in the public sector;

7. Bring about legislative changes so that good governance is encouraged and penalties

are imposed for non-compliance with anti-corruption laws. This should be done by

targeting the Whistleblowers Protection Act and the Malaysian Anti Corruption Act for

change.

Programmes 1. The delivery of the IPS project in public works. It is anticipated that three projects will be

delivered from 2012 to 2015. These projects are:

- A pilot project scheduled in Q3 2012 to test out the IPS, make proper modification

to suit local conditions and to gather experience for future projects. It is

recommended to conduct the pilot project with a Malaysian Government

procurement agency, with whom initial talks are under way;

- A first fee-collecting project with public works that is scheduled to be carried out

from 2013 to 2014; and

- A second fee-collecting project to be carried out from 2014 to 2015;

2. Implementation of the IPS project with local authorities in procurement for supply of

works, goods and services

3. The provision of integrity training courseware for public servants. The training

programme will focus on high risk areas such as procurement, landscape, finance and

accounting, and code of ethics

4. Another long term goal is to facilitate legislative change to eliminate the culture of

acceptance of corruption in Malaysia.

37

Impact / Risks Impact

1. The Governance of Public Bodies

- In the beginning the initiative will impact upon the corporate governance of public

bodies through the implementation of Integrity Pacts (IPs)

- As the use of IPs becomes standard procedure for public bodies, their culture will be

altered, making them less and less tolerant of corruption and bribery.

2. Reduced waste in public projects

- A clean public sector will lead to reduced wastage of public funds, allowing the public

either to enjoy greater levels of public services, infrastructure and products, or, pay

lower taxes.

3. Legislative framework

- A clean culture will accelerate improvements in legislation as public servants and

elected representatives encourage the passage of new laws that prioritise the

wellbeing of society.

Risks 1. Brand risk

Risk TI has a high quality brand, standing for truth, accountability, integrity and justice. By its

very nature, the work within this initiative will involve engagement with public sector

bodies where corruption is present. It is therefore essential that the TI’s name is kept

distinct from any agencies where TI is engaged, and the TI’s brand is not being used in an

unrestrained way.

Mitigation

Strict terms and conditions regarding the use of the TI name and logo by public sector

clients are a necessity for the work of the initiative.

2. Cash-flow risk

Risk

There’s a risk that the public sector initiatives will be affected by slow payment or

underpayment of agreed grants. This could affect TI’s short term capacity to perform its

tasks in the initiative.

Mitigation

Ensure clear contracts are drawn up, with grants being paid up front and supported by a

legally-binding payment schedule.

38

3. Resistance

Risk

Working with public sector bodies that are prone to corruption presents risks for TI staff

both to their safety and capacity to perform their duties. There is greater risk of this if

there is resistance to change from individuals in the client organization.

Mitigation

TI-M will only work with public sector bodies where there is a strong and demonstrated

intention to cooperate with TI-M to achieve the stated mission of engagement. Clients

should be made aware of the scope and conditions of TI-M’s work prior to engaging in

any formal or contractual agreements.

Start Date

Quarter 3 2012

Personnel This initiative will involve large scale public projects, therefore new staff members will be

required to take on the increased workload. It is important to hire a team of high calibre

personnel with a high standard of integrity to carry out the initiative. It is anticipated that

the following personnel will be required to carry out the initiative:

- Project managers, with 10 years’ working experience in managing public/private

projects;

- Project officers to assist the project manager (3 years’ working experience);

- Junior project officers (min. 2 years’ working experience); and

- Interns.

The number of staff required will be determined by the number and size of the projects.

Each project will fund its own staff, with the approval of the appropriate TI-M governance.

For other types of programmes, the following staff will be required as demand and funding

dictate and with the approval of the appropriate TI-M governance:

- Professional trainers;

- Management staff to organise training courses, conferences, coalitions, government

liaison and other programmes as below; and

- Administration staff to support the above and assist with the general running of the unit

and the TI-M organisation.

39

Funding Cost and income estimates per programme over period 2012-2015

1. IPS Programmes:

a. Pilot Project

Cost estimate 300k


b. 1st Project

Cost estimate 300k


c. 2nd Project

Cost estimate 300k


2. Courseware for integrity training

Cost estimate: 200k


3. Facilitation of legislative change to make companies responsible for staff activities

Cost estimate: 50k

Income estimate: 0k

40

Implementation Plan

Activities

Timeline

Time Frame

Costs*

2012 2013 2014 2015

1. Pilot Project to test IPs with selected Government Procurement Agency

9 months 300k

2. First fee-collecting project with public works

1 year 300k

3. Second fee-collecting project with public works

1 year 300k

5. Provision of integrity training courseware for public servants

2 years 200k

6. Facilitate legislative change

3 years 50k

*The Initiative will be revenue-generating, so it is anticipated costs will be covered by this income

41

7.2.4 Defence and Security: Reducing Corruption and Raising Transparency in the Defence

and Security Sector In The ASEAN Region

Introduction Transparency International Malaysia has opened a debate in Malaysia about the corruption

risks of defence and security sectors in Malaysia. A conference in Kuala Lumpur in

November 2011 attracted a lot of attention and great media interest. It has struck a chord

relating to a subject that has for long been hidden under an excessive veil of ‘national

security’, through which many dangerous and wasteful corrupt practices seem to have

become embedded. During the conference, the importance of tackling a sector long seen as

too difficult and dangerous for civil society to bring attention to was emphasised by many

participants, including former military officers, and has gained supporting voices from civil

society organisations in the region, initially Philippines, Indonesia and Thailand.

Rationale: The nature of the problem and why it matters Defence and security sector corruption is a scourge of development, democratisation and

good governance. It wastes scarce resources and reduces public trust in the government, its

armed forces and its security services. Mistrust and fear of the defence and security forces

and their corrupt structures has fuelled popular unrest that has challenged and, in some

cases, overthrown governments. Transparency International estimates the global cost of

corruption in the defence sector to be at a minimum of $20 billion per year, based on data

from the World Bank and SIPRI. This equates to the total sum pledged by the G8 in L’Aquila

in 2009 to fight world hunger.

Officials and senior officers also care so much about corruption risk in defence and security

establishments because corruption reduces operational effectiveness and because defence

budgets, due to their secrecy, are an easy target for politicians seeking funds. International

companies shun corrupt economies. Those responsible are well aware that corruption can

fatally undermine and invalidate well thought-out security strategies, negating the

investment made in them. It is also increasingly recognised that corruption is central to the

challenges in peace support and state building. Too often it is viewed as a side issue, rather

than as a central dynamic of a conflict.

Goal To advocate for governments in ASEAN to reduce corruption risks in the defence and security sectors through the introduction of effective anti-corruption measures such as transparency in defence budgets, increased open bidding in defence procurement and greater accountability and transparency to the public and media awareness by the defence and security sectors.

42

Objectives 1. To tackle defence and security corruption and raise transparency and accountability 2. Undertake research on: defence policy, defence budgets, security sector reform,

military-owned businesses, defence procurement, etc. 3. To assist in the development of integrity tools for defence procurement 4. To influence negotiations on The Arms Trade Treaty (ATT) (negotiations are ongoing

and the ATT is scheduled to be negotiated in July (2-27) by UN member states) 5. To strengthen civil society participation in defence and security issues through training

and research 6. To enhance media competency and awareness on issues related to integrity and

accountability in the defence and security sectors through training

Programmes/Activities (2012- 2015)

2012

Develop strategic plan for an ASEAN regional programme to reduce corruption and raise transparency in the defence and security sector in ASEAN. Country participants: Indonesia, Malaysia, Philippines, Thailand.

Publish proceedings of the Defence Conference in Kuala Lumpur (November 2011).

Research: Global Defence Integrity Index

- TI-M will participate in this annual global metric which measures levels of integrity

and anti-corruption in defence and security establishments worldwide. A researcher/consultancy to be identified.

- To oversee/review/comment on the assessment together with TI-Defence/Security Programme. (Funding for researcher from TI-DSP)

Conference (preferably regional) on Arms Trade Treaty (ATT)

Information campaign on the ATT

Regional

- Planning meeting for the Regional (ASEAN) TI Programme to reduce corruption and raise transparency in defence and security.

Training

- This is an initiative in the ASEAN region to build public and government awareness of the risks and costs of defence and security corruption, and develop an agenda for reform. The TI Defence and Security Programme has developed a training course for defence and security officials on building integrity and countering corruption; this may be used or adapted for engagement with Malaysian officials.

43

- Training for Civil Society using the toolkit developed with TI-UK.

Policy Advocacy

- Hold multiple relationship-building workshops with all the key stakeholders: Military, Defence Ministry, Police, Security Services, Finance Ministry, industry suppliers to the military and security services, etc.

- Undertake research on key topics that can move the subject along. This subject is so under-researched that small pieces of work can bring out striking results, and be very effective bases for specific advocacy. (See annexe for examples)

Public Advocacy

- To initiate a sensitisation campaign, to introduce the subject to a wide range of society elements, from military to media, in a low profile way. E.g.: articles and blogs that bring the topic into the issues of the day. Visits from the TI-UK expert team to build up the credibility of the initiative and open up expert areas for discussion in the national academic world, in the business media, and defence journals.

- Develop a blog community on defence issues

2013

Early 2013

- Announcement of the results of the Government Defence Integrity Index, which includes 80 countries worldwide, including Malaysia and others in the region.

- Assessment of GDII’s results for Malaysia and the region.

Regional Conference

- In conjunction with the Government Defence Integrity Index results announcement

Research

- Measuring corruption in Defence and Security. - Research on corruption risks in personnel and procurement

Advocacy

- To assess the effectiveness of campaigns and develop and alter strategies to build on former advocacy.

- To build coalitions

Training

- This is an initiative in the ASEAN region to build public and government awareness of the risks and costs of defence and security corruption, and develop an agenda for reform.

- Training for Civil Society using the toolkit developed with TI-UK

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Defence Universities

- Develop programmes to include in curriculum transparency in defence procurement and operations

Publications

- To publish research findings, survey results, and conference proceedings - To publish a book on the best practices in defence procurements

2014

Advocacy - Hold multiple relationship-building workshops with all the key stakeholders:

Military, Defence Ministry, Police, Security Services, Finance Ministry, industry suppliers to the military and security services, etc.

- Develop a blog community on defence issues - Undertake research on key topics that can move the subject along. This subject is

so under-researched that small pieces of work can bring out striking results, and be very effective bases for specific advocacy. (See annexe for examples)

- Reforms to policies and legislations Regional Conference

Publications - To publish research findings, survey results, and conference proceedings

Research - Government Defence Integrity Index - Index survey - Topics will be identified

2015

Advocacy - Hold multiple relationship-building workshops with all the key stakeholders:

Military, Defence Ministry, Police, Security Services, Finance Ministry, industry suppliers to the military and security services, etc.

- Develop a blog community on defence issues - Undertake research on key topics that can move the subject along. This subject is

so under-researched that small pieces of work can bring out striking results, and be very effective bases for specific advocacy.

Regional Conference Publications - To publish research findings, survey results, and conference proceedings

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Research - Government Defence Integrity Index - Index survey - Topics will be identified

Intended outcomes and benefits - Two principal outcomes in each country. First, that the government moves to

address the problems of defence and security corruption risks through constructive measures, such as anti-corruption plan, increased open bidding in defence procurement, and increased detail and transparency in defence policy and the defence budget. Second, we are looking for an increased level of public and media awareness and debate in each country about the importance of integrity and accountability in the defence and security sectors.

- On a regional level, transparency in defence to be taken up by ASEAN to demand strong anti-corruption measures in arms transfers to and from the region, in the negotiations for the Arms Trade Treaty.

Monitoring and Evaluation - TI-UK and TI-Malaysia, Indonesia, Philippines and Thailand will put in place the TI-

UK defence programme process to maximise learning from the work, so that the lessons learned during the project can inform future strategy. This process consists of five elements i. Reporting to donors based on indicators gauging our impact (e.g. measuring

press coverage); ii. Managing all knowledge: collecting intelligence, presentations, and meeting

notes and reviewing them on a regular basis; iii. Mapping networking progress for different communities (e.g. Defence

Ministries) through a ‘partnership scale’; iv. Maintaining a record of media and stakeholder quotes on the impact of the

project; and v. Reviewing and update our experience of which interventions were best at

affecting a change.

Risks - The principal risk is that all these activities will have no positive result. This risk is

real, as defence and security have remained closed topics for many years. Our optimism though that this risk will not be material is based on the experience elsewhere across of the world from the TI-UK defence team and from the initial response to the Malaysia conference.

- If this risk does materialize, and we find it impossible to engage with defence and security establishments, we can continue to have an impact through our work with Civil Society and the media (including blogs).

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Implementation Plan: DEFENCE AND SECURITY-REDUCING CORRUPTION AND RAISING

Activities Budget

2012 Q1 Government Defence Integrity Index research

RM400k p/a

Publish proceedings of the Defence conference in KL Fund raising

Q2 Regional conference on UN Arms Trade Treaty (ATT) and launch of Public Campaign on ATT

Regional planning meeting for ASEAN TI Defence Programme

Develop strategic plan for an ASEAN regional programmed to reduce corruption in defence

Q3 Research on codes of conduct in MoD Malaysia and Armed Forces

Training Civil Society to use toolkit developed with TI-UK

Q4 Policy Advocacy with Defence and Security related ministries

Public advocacy on Defence

Release of Government Defence Integrity Index (Analysis)

Regional conference (in conjunction with Index results) Review and implementation of strategic plan

2013 Q1 Assess effectiveness of 2012 campaigns

RM800k p/a

Measuring corruption in Defence and security (Worldwide Survey)

Training Civil Society to use toolkit developed with TI-UK

Q2 Defence universities - Develop programmes to include in curriculum on transparency in defence procurements

Publications - Publish research findings, survey results and conference proceedings



Release of Worldwide Survey Assessment (Analysis)

Regional conference (in conjunction with survey results) Review and implementation of strategic plan

2014 Q1 Advocacy with Defence and Security ministries and suppliers

RM800k p/a

Develop a blog community on defence issues

Government Defence Integrity Index

Q2 Research on new topics + publications

Q3 Advocate for policies and legislations





2015 Q1 Advocacy with Defence and Security ministries and suppliers RM800k p/a

Measuring corruption in Defence and security (Worldwide Survey)

Q2 Research on new topics + publications

Q3 Advocate for policies and legislations





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7.2.5 Reducing Corruption in Labour Migration

Introduction Malaysia is a destination, and to a lesser extent, a source and transit country for men, women and children who are subjected to conditions of forced labour, and women and children subjected to sex trafficking. The overwhelming majority of trafficking victims are among the two million documented and 1.9 million undocumented foreign workers in Malaysia. They migrate willingly to Malaysia from countries including Indonesia, Nepal, India, Thailand, China, the Philippines, Burma, Cambodia, Bangladesh, Pakistan and Vietnam in search of greater economic opportunities. Some of them subsequently encounter forced labour or debt bondage at the hands of their employers, employment agents or informal labour recruiters.

While many of Malaysia’s trafficking offenders are individual business people, large organised crime syndicates are also behind the trafficking. Many Malaysian labour outsourcing companies recruit excess workers from Bangladesh, Vietnam, and other countries, who are then often held in warehouses or other locations and handed over to unscrupulous employers, who subject them to conditions of forced labour. Many migrant workers in plantations, construction sites, textile factories, and employed as domestic workers throughout Malaysia are subject to practices indicative of trafficking such as restrictions on movement, deceit and fraud in wages, passport confiscation, or debt bondage at the hands of agents and employers.

Passport confiscation is widespread, and there were reports that employers also opened joint bank accounts as a form of control on workers. Some employees reported that their employers exercised control over them by threatening to take the workers’ passports to immigration authorities where the employer would allege that the worker had breached the terms of their labour contract, which could result in the revocation of the worker’s visa and their subsequent deportation.

Some Malaysian employers reportedly did not pay their foreign domestic workers three to six months’ wages in order to recoup recruitment agency fees and other debt-bonds charged to employers. In some cases, employers illegally withheld employee wages in escrow until completion of the contract, resulting in workers continuing to work for fear of not receiving financial compensation if they did not continue to do so.

Refugees, particularly from Burma were especially vulnerable to trafficking, and Malaysians from rural communities and indigenous groups were also vulnerable. (Source: US Government Report 2011)

Rationale Malaysia is placed on Tier 2 Watch List for a second consecutive year. Observers reported that corruption continued to play a role in the trafficking of foreign migrant workers, particularly with regard to officials’ authorising excess recruitment by Malaysian “outsourcing” companies, which recruit workers abroad. Reports also indicated that collusion between police and trafficking offenders sometimes led to offenders escaping arrest and punishment.

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Objectives 1. Increase law enforcement actions under the anti-trafficking law, particularly labour-

trafficking cases 2. Apply stringent criminal penalties to those involved in fraudulent labour recruitment or

forced labour 3. To develop procedures to identify labour trafficking victims among vulnerable groups

such as migrant workers Programmes/Activities 2012 - 2015 1. Planning Meeting with Bangladesh, Cambodia, Indonesia and Malaysia

- This will take place probably during the Regional Programme Meeting - The planning meeting will identify collaborative activities between Malaysia and

Bangladesh 2. Develop training modules on how to avoid corruption for all Enforcement Officials

including those in the Local Councils. Emphasis is on ethics and integrity 3. Develop oversight mechanisms for communities to become monitors, e.g. through

Residents Associations - Produce a community toolkit

4. Research

- Undertake research with Bangladesh, Cambodia and Indonesia to identify incidence of corruption in Labour Migration

- Research on Visas/Contract Substitutions 5. Legislation

- Review of Whistleblower’s Act, MACC Act, State Enactments, Anti-Trafficking in Persons Act

- Review standard operating procedures for investigations

6. Conferences (Themes to be identified at the planning meeting)

7. Publications based on Research findings

8. Coalition building with civil society organisations Intended Outcomes and Benefits 1. Increased prosecutions 2. Corruption reduced 3. Improvement of standing in US watch list 4. Enforcement officers better trained to deal with corruption 5. Completion of legislation review

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6. Increased effective community involvement in monitoring Monitoring and Evaluation Mechanisms to be established at the planning meeting Human Resources Human resource requirements to be determined by collaborating countries Funding - In the process of identifying potential funders Labour Migration Implementation Plan

YEAR ACTIVITIES BUDGET

2012

Q2 Planning meeting with TI-Bangladesh, TI-Cambodia and TI-Indonesia

Submission of funding proposal to potential donors

Briefing meeting with enforcement agencies RM300k pa

Pilot Study: To test research questions

Q3 Undertake research with TI-Bangladesh, TI-Cambodia and TI-Indonesia

Q4 Comparative study of legislations in four countries

(Bangladesh, Cambodia, Indonesia, Malaysia)

Coalition building in four countries

2013

Q1 Publication of findings and conference based on research findings

Review of standard operating procedures (investigations)

Q2 Development of training modules and community kits RM600k pa

Completion and submission of Review of Legislation

Q3 Advocacy: Meetings with Labour and Home Affairs Ministry

Q4 Training

Publications: Comparative Study of Legislation

2014

Q1 Training for Enforcement Officers and Residents' Association

Advocacy (Continuous)

Q2 Conference for Enforcement Officials from RM700k pa

Bangladesh, Cambodia, Indonesia, Malaysia

Q3 Advocacy (Continuous)

Q4 Publication: Book on reducing corruption in labour migration

(Based on studies in Bangladesh, Cambodia, Indonesia, Malaysia)

2015 To continue 2014 programmes RM700k pa

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8. IMPLICATIONS OF THE STRATEGY

To be able to operate as a well functioning and responsive organization, TI-M needs to have

certain critical elements in place. They include greater campaigns, policy advocacy, resource

mobilisation to develop and implement programmes, fund raising, improvement of staff

skills including training, and implementation of monitoring systems.

The implications of this Strategy are far reaching for the movement. It defines our direction

and activities for the next 4 years, and measures our impact as the main Malaysian NGO

leading the fight against corruption. It is thus important that full support and cooperation is

received from everyone associated with TI-M – Members, Exco, staff, funders, friends and

partners among others.

TI-M engaging with youth on an FGI programme trip