Corruption in PLCs
In January 2023, the global anti-corruption coalition Transparency International revealed that Malaysia’s 2022 Corruption Perceptions Index (CPI) score deteriorated to 47 points from 48 points in 2021, where 0 is highly corrupt, and 100 is perceived as very clean. The CPI is the most widely used global corruption ranking in the world. It measures how corrupt each country’s public sector is perceived to be, according to experts and businesspeople.
From 53 points in 2019, Malaysia’s CPI has fallen 6 points over the past three years. The drop is statistically significant, indicating that the country is heading in the wrong direction regarding fighting corruption, supporting human rights and democracy in the public sector.
According to the Malaysian Anti-corruption Commission (MACC), corruption is the act of giving or receiving any gratification or reward in the form of cash or in-kind of high value for performing a task in relation to his/her positions.
Levelling the playing field
Transparent and timely disclosures by listed companies are critical to facilitating informed investment decisions, enhancing corporate reputations as reliable and trustworthy organizations, promoting market efficiency and fairness, and preventing insider trading. This is especially so when it comes to the disclosure of material information to the public in according to Paragraphs 9.08 (1) and (2) of the Main Market and Ace Market Listing Requirements
As a highly geared holding company whose subsidiaries are mired in a myriad of challenges from the RM9.13 billion LCS contract to the PN17-affected pharma arm, it is understandable why some minority shareholders would welcome the conditional voluntary takeover offer by LTAT to acquire the remaining shares in Boustead Holdings Berhad.