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PETALING JAYA: The Trans-Pacific Partnership Agreement (TPPA) can help improve transparency, the governance of government-linked companies (GLCs) and procurement systems, a think-tank said today.

In a statement, the Institute for Democracy and Economic Affairs (IDEAS) said certain chapters of the TPPA mandated member countries to strengthen transparency and anti-corruption measures, including the ratification of the United Nations Convention Against Corruption (UNCAC).

 “This prevents the offering of undue advantages, including non-pecuniary advantages to public officials and ensures effective identification and management of conflict of interests, including asset declaration.”

The statement said that while Malaysia has ratified the UNCAC, the improvements depended on political will at present.

 “The TPPA will force policymakers to take swift action as other member countries can resort to dispute settlements if they consider Malaysia’s corruption measures inconsistent in a manner which affected trade and investment between parties, in line with the Anti-Corruption Section of the agreement.”




On GLCs, IDEAS said the TPPA aimed to ensure a level playing field between GLCs and private entities by requiring only commercial considerations were used, instead of racial or political leanings as well as the avoidance of discrimination in procurement.

The transparency section required Malaysia to publish a list of GLCs and provide information on its non-commercial assistance, which included the type of assistance, amount and duration amongst others.

IDEAS noted, however, that sovereign wealth funds including Khazanah Nasional, the Employees’ Provident fund (EPF) and Lembaga Tabung Haji amongst others were not subject to these obligations while some carve-outs and transitional measures for GLCs were also secured.

The statement also said the creation of a review authority as part of the TPPA would ensure a more transparent and accountable procurement system.

“This review authority will receive and process complaints and/or challenges from contractors and suppliers on government purchases or procurement practices that are seen to be in breach of the agreement, as well as decide on compensation for valid complaints.”

IDEAS said this would make procuring entities more transparent and accountable to bidders and the public.

The TPPA is a trade agreement in the Asia-Pacific region involving 12 countries including Malaysia, Mexico, Japan, and the United States.

Source from FMT News

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