Module 2
INTEGRITY: THE
CORE OF WELL-
BEING
Importance of State
Governance
Good governance is:
• A critical aspect for the prosperity
and progress of a country.
• Has a direct impact on the well-
being of the people.
Concrete governance planning can
result in transparency, accountability,
inclusiveness, and effectiveness. All
of these contribute to a civil,
democratic administration that
functions well.
Corporate Management
Administrative /Governance,
Management
/ Governance
Human
Management/Governance
Corporate Management
/Governance
Definition of corporate governance:
“According to High Level Finance Committee Report (1999),
corporate governance is defined as the process and
structure used to direct and manage the business and
affairs of the company towards promoting business
prosperity and corporate accountability with the ultimate
objective of realizing long-term shareholder value while
taking into account the interest of other stakeholder.”
Humanitarian
Management/Governance
“Human Governance Human refers to being
human. Being human means being guided by
a common set of principles inherent in every
human being (Salleh and Ahmad, 2010)”.
ETHICS
in Life
NO INTEGRITY
CAUSES CORRUPTION
MEANING OF INTEGRITY
The quality of being honest and
having strong principles the state of
being whole and undivided.
- Oxford Dictionary, 2nd Edition 2003 -
MEANING OF INTEGRITY
Honesty, transparency,
perfection and integrity
- Kamus Dewan, Edisi 2000 -
MEANING OF INTEGRITY
Integrity in general is a quality of
excellence that is manifested in a
holistic and integral manner in
individuals and organizations. Integrity
is based on ethics.
- PIN, 2004 -
MEANING OF INTEGRITY
It is about perfect individual and
organizational characteristics based on
noble values such as honest, truthful,
trustworthy, just, responsible,
transparent, efficient and wise.
- The Malaysian Institute of Integrity-
INTEGRITY
in a nutshell
“Is doing the RIGHT
thing, even when no one
is watching”
- C.S Lewis -
How is INTEGRITY
of Malaysian?
POOR
LEADERSHIP
WEAK SYSTEM
INDIVIDUAL
WEAKNESSES
5
Factors that
& PROCEDURE
could affect the
Integrity
CULTURE
STRUCTURE &
INSTITUTION
INDIVIDUAL WEAKNESSES
• Integrity is not a culture
• Weak of self-control
• Low moral values
• Low work ethics
• Greed
• Does not reflect on own weaknesses
• Life pressure
• Opportunist
• Like pursuing wealth
• Extravagant Lifestyle
POOR LEADERSHIP
• Leadership that does not set as a
good example
• Leadership that does not emphasize
integrity
• Directives that violates procedures
and integration
• ‘Does not Walk the Talk’
WEAKNESSES
IN SYSTEM & PROCEDURES
• Weak systems and procedures that
create opportunities for corruption
and missapropriation
• Obsolute rules that are no longer
suitable to be implemented
• Lack of transparency and process
• Lack of enforcemennt or selective
enforcement
• Lack of monitoring
• Limited human resource capabilities
and materials
UNHEALTHY CULTURE
• Society’s culture has low
emphasize on integrity
• Fear of reporting due to retaliatory
action
• ‘I don’t care attitude’
• ‘Yes Man’ and ‘Boot-licking attitude
at work
STRUCTURE AND INSTITUTION
STRUCTURE
• Disordered organizational structure,
outdated and not in keeping with the
times
• Unclear and unreasonable
organizational goals
INSTITUTIONS
• Redundance in scope, duties and
responsibilities among institutions
• No inter-organisational coordination
• Conflict of goals between institutions
WHY individuals 1. Lack integrity
commit corruption 2. Human nature that loves being celebrated
and abuse of power? 3. Human nature that wants easy money
4. Practice and tradition in organization
5. Conspiracy and mutual agreement
6. Good relations (officer and contractor)
7. Starts with a small amount
8. Tempted with bribes multiple times
9. Managed to reject bribes, but not forever
10. Contractor’s tactic
REAL ACTIONS WITHOUT
CASES INTEGRITY
Misappropriation in rice fertiliser
subsidy
Audit by National Audit Department shows that
misappropriation happened in the following forms :
• Rice farmers did not receive fertiliser subsidy
• Recipients were not farmers
• The same recipients received from two sources
• Subsidy recipients exceed eligibility
- LKAN 2012 -
Forged his own • SEREMBAN, 17 January 2012 – Former Director of
Negeri Sembilan Veterinary Department was charged
promotion documents with forging his own promotion documents.
• The offence involved:
a. Forging letter of instruction for promotion from Grade
48 – RM39,536.90 salary and allowance adjustment.
b. Forging letter of instruction for acting Grade 52
(KUP) – RM5013.82 salary and allowance
adjustment.
c. Forging decision letter for promotion from Grade
G48 to Grade G52 – RM5,764.86 salary and
allowance adjustment.
d. Forging decision letter for acting Grade G54.
• 29 January 2015 – Court of Appeals handed a two-year
imprisonment sentence and RM10,000 fine.
Taking advantage of a single
mother in need of a home
• 18 November 2014 – An officer at
a public agency allegedly solicited
sexual favours from a single
mother
• In return for approval for
affordable housing under Projek
Perumahan Rakyat Termiskin
(PPRT)
Forging certificate to obtain employment :
Former factory manager fined
• KUALA LUMPUR, 22 September 2016
– A factory manager was charged with
forging a Bachelor’s degree certificate
from International Islamic College, KL
• The purpose was to apply as a Deputy
CEO at a college.
• Pleaded guilty and was fined RM20K.
Breach of trust :
former amil • KULAI JAYA, 1 November 2011 – A
former amil / Imam was sentenced to 4
sentenced to 4 years
years imprisonment and 3 whippings for
in prison, 3 whippings committing breach of trust.
• The accused pleaded guilty for committing
breach of trust in funds from zakat fitrah
and donation collection for orphans
amount to RM19,510.
• The accused used the money for his
personal interest.
Lack motivation to work
Forging documents Inefficient
Weakness in system
and procedures Abuse of power
CABARAN
Conflict of interest
INTEGRITI Misappropriation
Unethical Complaints from people
Lack quality
CORRUPTION
HIGH-RISK FIELDS
Be Careful if you work in these fields
CONTRACT AND TENDER Integrity issues that always occur
• Conflict of interest – abuse of power for
personal or family interest / advantage.
• Illegal pact between contractor and
procurement officer
• Leaking confidential information about
contract / tender
• Receiving illegal commission / compensation
• Manipulating the specifications of work /
goods / services for benefit of certain
contractors
• Approving incomplete work/goods/services
• Fraud in variation order and progress
payment claim.
PURCHASE AND SUPPLY Integrity issues that always occur
• Excessive and unnecessary purchase
• Supply of low quality goods that do not follow
contract specification
• Purposely creating a need for a service / work /
purchase
• Unreasonable marked up price (procurement
price)
• Improper payment (payment is made before the
services /works / goods are still not completed or
supplied)
ENFORCEMENT AND
REGULATION Integrity issues that always occur
• Using power for your own benefit
• Using discretion without control
• Taking advantage when dealing with
customers who are facing trouble
• False claim for overtime or deliberately
created overtime
• Fail to report wrongdoings
• Does not supervise subordinates
• Blackmailing customers for own benefit
OFFICE PROPERTY
AND ASSET Integrity issues that always occur
• Quantity of goods delivered does not tally
(short)
• Goods supplied are low quality/does not
follow specification
• Stolen/missing goods from the store are
not reported
• Using office property/asset for personal
use
• Distribution of office goods is not recorded
PRACTICE INTEGRITY,
AVOID CORRUPTION
INTEGRITY
begins from the heart
Parents shape children’s
INTEGRITY
Fix your intention!
Always seek sustenance from
permissible sources
GOVERNMENT INITIATIVES
to enhance public service integrity
1979 – Guideline on Excellence Award
1980 – Punch Card System
1982 – Clean, Efficient and Trust Campaign
(Bersih Cekap Amanah)
Among 1982 – Look East Policy (Dasar Pandang Ke Timur)
Government 1983 – Name Tag System
Initiatives 1983 – Leadership by Example
To Enhance 1985 – Application of Islamic Values in Administration
Public Service 1987 – Islamic Work Ethics
Integrity 1989 - Gerakan Budaya Kerja Cemerlang
1991 – Q Day Celebration (Sambutan Hari Q)
1992 – The 12 Pillars (Tonggak 12)
1998 – PM’s Directive to Perform Good Values Activities
2000 – Management Integrity Committee
2004 – National Integrity Plan (PIN)
2007 – Value Audit
2009 – MACC Act 2009
2009 – Key Performance Index (KPI)
2009 – Innovative & Creative Team (KIK)
2009 – Governance Integrity Committee
Among
2009 – National Key Result Areas (NKRA)
Government 2009 – National Blue Oceans Strategy (NBOS)
Initiatives 2013 – Establishment of Integrity Units at public agencies
To Enhance 2014 – Integrity and Governance Committee (JITU)
Public Service 2014 – Public Sector Conducive Ecosystem (EKSA) /5s
Integrity 2014 – HRMIS
2018 – Special Committee on Anti-Corruption (JKKMAR)
2018 – Anti-Corruption Committee (JAR)
2018 – Establishment of Integrity and Governance Unit
(IGU) at GLC
2019 – National Anti-Corruption Plan (NACP) 2019-2023
