KUALA LUMPUR – An anti-corruption proponent from Malaysia has called on member states of the United Nations (UN) to introduce public registries of beneficial company owners to help prevent corrupt individuals across the world from hiding behind secret shell companies.
Cynthia Gabriel, founding director of the Kuala Lumpur-based Centre to Combat Corruption & Cronyism (C4), said this as she urged governments to implement measures to strengthen international cooperation in fighting corruption.
According to financial information portal Investopedia, a “beneficial owner” is a person who enjoys the benefits of ownership even though the title to some form of property is in another name.
C4 was among five NGOs from around the world invited by UN General Assembly president Volkan Bozkir to give a statement during the world body’s special session against corruption held just past midnight Malaysian time today.
Cynthia’s address was read at the session, which deliberated on challenges and measures to prevent and combat corruption, as well as to strengthen international cooperation in this regard.
She also serves as the vice-president of the UN Convention Against Corruption coalition.
Using the 1Malaysia Development Bhd (1MDB) scandal as an example, she pointed to how the case spanned multiple countries and jurisdictions, involving various parties, banks, and international law firms implicated in helping to hide billions of dollars in stolen funds in offshore shell corporations for private and political gain.
She said public registries of beneficial owners are important as perpetrators of corruption cannot then hide behind their secret shell companies.
“In too many grand corruption cases around the world, powerful individuals and many others in the business of facilitating corruption continue to enjoy impunity,” she said.
She also touched on how she and her colleagues were intimidated, attacked, and arrested by the authorities, while calling on member states to guarantee full protection of whistleblowers, civil society, and journalists.
“Whistleblowers, investigative journalists, and anti-corruption activists played a central role in exposing and calling out corruption at the highest levels, and yet my colleagues and I were repeatedly intimidated, attacked, and arrested by the authorities,” she said.
“We were persecuted simply because we followed the money trail, spoke up, published articles, and mobilised the public to demand answers.
“We overcame fear of reprisals and retribution. We managed to score important victories: the former prime minister and his cohorts in the 1MDB have been charged and are on trial.”
Cynthia said that the states should mandate the publication of asset declarations from elected officials to detect potential conflicts of interests.
She said there is a “colossal failure” in the international framework to tackle impunity, and address transnational corruption.
She cited compromises of national institutions by executive power, corruption involved in the financing of political parties, secret negotiations over asset recoveries, gaping holes between domestic jurisdictions, intelligence sharing, and pitiable commitments to international cooperation.
These have given perpetrators ample room to run and to hide from criminal action, she stressed
Cynthia urged member states to go “beyond the lowest common denominator” in their efforts and to make the political declaration a success and include civil society as partners in the endeavour.
“We stand ready to support these efforts and to develop solutions to further strengthen the international anti-corruption framework. We need to ensure that grand corruption cases such as 1MDB will no longer occur or go unpunished, not in Malaysia, not anywhere,” she said. – The Vibes, June 5, 2021
