1.          INTRODUCTION

 

The National Anti-Corruption Strategy (NACS) is a continuation of the National Anti-Corruption Plan (NACP) that was first developed in 2019 as a comprehensive plan to unify efforts to tackle various issues related to governance, integrity, and anti-corruption prevention.

 

The 17th Cabinet Special Committee on Anti-Corruption (JKKMAR) meeting, held on July 6, 2023, chaired by the Prime Minister, decided to formulate the National Anti-Corruption Strategy (NACS). This strategic move, which aligns with international standards, is a continuation of the NACP’s efforts to effectively combat corruption.

 

The development of the NACS focuses on the well-being of the people through the Malaysia MADANI agenda. The objectives of the NACS can only be achieved through the continued collaboration of all parties, including politicians, the public sector, the private sector, and non-governmental organizations. Its benefits will be felt not only at the national level but also internationally, with the goal of ensuring that good governance, integrity, and anti-corruption prevention are truly experienced by the people.

 

1.1       Main Strategies of NACS

Five (5) main strategies have been identified as the areas that need to be focused on in the fight against corruption, based on a corruption risk assessment carried out during the development of the National Anti-Corruption Strategy (NACS) 2024-2028, marking a committed effort towards a corruption-free nation.

The five (5) main strategies identified are as follows:

 

(i)          Education;

(ii)        Public Accountability;

(iii)       People’s Voice;

(iv)      Enforcement; and

(v)        Incentives.

 

1.2       NACS Reporting

Progress reports on the implementation of the NACS are submitted using the online system r-NACS, which has been provided by the NACS Secretariat. Reports must be submitted by the Reporting Agencies as outlined in the Directive of the Prime Minister No.1, 2023, Series 2, No.2, 2024, on the National Governance Enhancement Movement: Implementation of the National Anti-Corruption Strategy.

 

The reporting timeline is as follows:

 

(i)          First Quarter (January - March) - before or by April 10

(ii)        Second Quarter (April - June) - before or by July 10

(iii)       Third Quarter (July - September) - before or by October 10

(iv)      Fourth Quarter (October - December) - before or by January 10 of the following year

 

2.          SUB-STRATEGIES OF NACS UNDER THE AUDIT DEPARTMENT OF MALAYSIA

The Audit Department of Malaysia (JAN), as the Lead Agency, is responsible for two (2) sub-strategies under the NACS 2024-2028, which will be implemented from May 2024 to December 2028.

 

             1)         Strategy 2: Public Accountability / Sub-strategy 14:

Sub-strategy 14: Enhance the effectiveness of governance as proposed in the Auditor General's Report through continuous monitoring using the Auditor General's Dashboard (AG Dashboard).
Implementation Period: Medium term

 

2)          Strategy 2: Public Accountability / Sub-strategy 16:

Sub-strategy 16: Strengthen governance and the role of Internal Audit in the Public Service.
Implementation Period: Medium term

 

3.          STATUS OF ACHIEVEMENTS FOR NACS SUB-STRATEGIES UNDER THE AUDIT DEPARTMENT OF MALAYSIA (AS OF DECEMBER 31, 2024)

 

            1)         Strategy 2: Public Accountability

Sub-strategy 14: Enhance the effectiveness of governance as proposed in the Auditor General's Report through continuous monitoring using the AG Dashboard.

 

The AGD system is part of the scope of the Public Service Digitalization Project (PPJ) of the Audit Department, which began in 2024. In line with the Cabinet’s decision on November 29, 2024, JAN will continue the process of improving the AGD system in 2025 to strengthen the monitoring of issue resolution and the implementation of audit recommendations raised in the Auditor General’s Report (LKAN). The AGD system is a new initiative developed by JAN, aimed at addressing issues of leakage and inefficiency in the management of government finances and national resources, while protecting public funds.

 

The AGD system provides a comprehensive digital platform for real-time monitoring of audit issues and recommendations, thus accelerating follow-up actions for the involved agencies. This system was awarded the Special Project Recognition Certificate for Accelerating Digital Transformation and Improving the Efficiency of the National Audit Service, presented by the Chief Secretary of the Government on November 24, 2024, during the National Convention on Public Service Reform.

 

     2)          Strategy 2: Public Accountability

 Sub-strategy 16: Strengthen governance and the role of Internal Audit in the Public Service.

The Auditor General's Directive No. 3, 2024, regarding the Guidelines for the Roles and Responsibilities of the Audit Department Officers Placed in the Internal Audit Units of Ministries/Departments/State Secretary’s Offices, effective July 1, 2024, aims to allow the Auditor General to monitor the officers of the Audit Department (JAN) stationed in the Internal Audit Units (UAD) of Ministries/Departments/State Secretary’s Offices to achieve the following goals:

 

(i)          Address comprehensively the audit issues reported in the LKAN;

 

(ii)        Improve the quality of UAD reporting in line with public sector auditing standards;

 

(iii)      Standardize the audit procedures between JAN and UAD to avoid overlapping work; and

 

(iv)      Serve as a reference for the coordination of UAD officers’ tasks.

 

Following the implementation of these Guidelines, the Ministry of Finance also amended the Treasury Circular PS 3.1: Implementation of Internal Audits in Federal and State Government Ministries/Departments, effective October 7, 2024. The updated Treasury Circular PS 3.1 stipulates that Internal Audit officers, including officers seconded or loaned from JAN, shall always be subject to the directives issued by the Auditor General from time to time.

 

The implementation of this strategy through the application of the Auditor General's Directive and the Treasury Circular aims to enhance the effectiveness of auditing, prevent overlapping audit work, and identify areas or issues that need to be audited. Additionally, UAD officers also serve as liaison officers within the organization for audit findings by JAN and ensure the organization takes corrective actions and improvements for issues reported in the AGD system.