Malaysia anti-graft chief denies links to ‘corporate mafia’

MALAYSIA: Malaysia’s anti-graft boss, Azam Baki, said a shadowy “corporate mafia” gang operating through legitimate business structures is fueling a complex web of organised crime in Malaysia, but he denies that his agencies have alleged links with the gang.

The Malaysian Anti-Corruption Commission (MACC) chief commissioner added that these syndicates do not operate openly, but exploit corporate frameworks to evade enforcement.

“We are no longer dealing with ordinary crime, but an organised criminal ecosystem driven by what I describe as a corporate mafia.

“They exploit systems to ensure these crimes continue undetected,” he said at an event on Friday (April 3).

He said such groups are using a vast network of accountants, lawyers, and consultants to shield illegal activities. They also manipulate structures and launder illicit funds.

They also have insiders of certain agencies to assist them in their illegal activities.

In Malaysia, this term has been used to describe alleged networks accused of colluding with enforcement agencies to seize control of public companies. The modus operandi is to engineer investigations that force owners to sell shares at steep discounts.

Corporate crime includes fraud, corruption, abuse of power, share manipulation, investor deception and tax evasion.

Azam also urged enforcement agencies to collaborate to tackle the issue. “This requires coordinated action among MACC, the police and the Inland Revenue Board,” he said.

The “corporate mafia” scandal in Malaysia was highlighted in a Bloomberg report on Feb 12.

The report was accompanied by a video that detailed the extent to which corporate mafia actors can go to achieve their aims.

Bloomberg said they span both the corporate and political sectors and involved deals between business figures and enforcement agencies.

The Bloomberg report had also alleged that senior MACC officers had colluded with private individuals to stage a corporate takeover of rivals.

On April 2, Azam Baki reiterated that police have found no involvement of MACC officers or its leadership in the investigation into “corporate mafia” activities.

“The police themselves have issued a statement confirming that this has no connection with MACC. That is all. I do not wish to comment further,” he said.