CHAIR’S SUMMARY- 15 -

Chair’s Summary
Seventh Regional Seminar on Good Governancefor Southeast Asian Countries
Enhancing Investigative Ability in Corruption Cases(3-5 December 2013, Kuala Lumpur, Malaysia)

General1.

The Seventh Regional Seminar on Good Governance for Southeast Asian Countries,
co-hosted by the United Nations Asia and Far East Institute for the Prevention of
Crime and the Treatment of Offenders (UNAFEI) and the Malaysian Anti-Corruption
Commission (MACC), was held in the Main Conference Room of the Malaysia AntiCorruption Academy (MACA), in Kuala Lumpur from 3 to 5 December 2013.

2.

Officials and experts from the following jurisdictions attended the seminar: Cambodia,
Indonesia, Lao PDR, Myanmar, the Philippines, Thailand, Vietnam, Malaysia, Japan,
Hong Kong, Singapore, and the United States of America.
Opening Ceremony

3.

Ms. Tomoko Akane, Director of UNAFEI and the Honourable Datuk Hj. Mustafar bin
Hj. Ali delivered opening speeches, expressing their gratitude to the participants fortheir attendance. Their speeches were followed by a special address by His
Excellency, Sigeru Nakamura, the Ambassador of Japan to Malaysia. All three
speakers stressed the importance of good governance and the rule of law.
Keynote Remarks and Lectures by Experts

4.

Mr. Kenichi Kiyono, Deputy Director of UNAFEI, provided introductory remarks on“Best Practices for Investigation of Corruption”. He explained best practices
discussed at UNAFEI’s two recent International Training Courses, which included:
covert operations based on information from the public (ICAC, Hong Kong);
intelligence-based investigation (MACC, Malaysia); new anti-bribery legislation(SFO, United Kingdom); interview techniques including the PEACE Model tointerview cooperative witnesses/suspects (Hampshire Police, United Kingdom) and
the Reid Technique to interrogate uncooperative suspects (FBI, United States).

5.

The Honourable Datuk Hj. Mustafar bin Hj. Ali from MACC delivered a welcome
address and a presentation on the “Current Situation and Challenge of Investigation of
Corruption Cases of MACC.” He talked about the implications of corruption, critical
success factors in setting up effective anti-corruption agencies, the establishment andorganization of MACC, detection of corruption offences, preventive efforts, andcorruption-free policies, strategies and action plans.

6.

Mr. Ang Seow Lian from the Corrupt Practices Investigation Bureau (CPIB)
presented on the “Singapore Experience — Corruption Control System and Effective
Enforcement Methods”. He talked about the importance of political will, an- 17 -

independent judiciary, effective enforcement, effective laws, effective adjudicationand strong public support, and he also addressed trends and challenges etc.
7.

Mr. Kenneth C. Kohl from the American Embassy in Kuala Lumpur presented on“Enhancing the Investigation and Prosecution of Corruption Cases”. Mr. Kohl
emphasized that the keys to fighting corruption include an independent judiciary,
proactive police, tracing and recovering the proceeds of corruption, etc. He explainedthat unsuccessful prosecutions often result from (i) the lack of prosecutorial
independence, (ii) failure to cultivate insider witnesses, (iii) insufficient corroborative
evidence, and (iv) failure to adhere to high ethical standards.

8.

Mr. Tony Kwok Man-wai from the Hong Kong Special Administrative Region ofChina made a presentation on “Effective Investigation of Corruption Cases, Hong
Kong’s Experience”. He talked about prerequisites for an effective investigation,
understanding the process of corruption, investigating past/current corruption offences,
investigation techniques, etc.
Discussion Summary

9.

The Evils of Corruption
Corruption destroys nations. It undermines democracy and the rule of law, distortsbusiness activities and competition, and hinders sustainable development andprosperity. It is also a threat to the security of societies as it creates environments inwhich organized crime, terrorism, and other forms of unlawful activity may prosper.
Corruption makes fortunes for a very limited number of powerful people; thus thehuman rights of poor and vulnerable people are infringed the most.

10.

The Importance of Enforcement in Fighting Corruption
Mr. Kwok pointed out the importance of enforcement under a three-pronged approachof prevention, enforcement and education, and the importance of making corruption ahigh-risk crime. Mr. Ang also explained his view that law enforcement agencies(LEAs) would not be able to deal with corruption cases without comprehensive
evidence. Additionally, he explained that LEAs must obtain evidence frominterviews with witnesses, interested parties, and involved parties, and they must
gather physical, documentary and computer evidence and must chase the money trail.
These views were shared by every participant.

11.

The Difficulties of Enforcement of Corruption Offences
Investigation of corruption cases is a very difficult task for law enforcement officials
because: (i) bribery is a hidden crime which benefits the collusive parties; (ii) little, ifany, evidence is left at the crime scene; (iii) corruption cases are often committed bypowerful politicians, high-ranking officials or organized criminals, which make it
difficult for investigators to obtain the cooperation of witnesses and suspects; (iv)
investigation of large-scale corruption cases demands perseverance, knowledge,
experience, expertise and organizational strength; (v) the increasing demands for theprotection of human rights imposes significant restrictions on suspect interviews; (vi)corruption crimes are getting more and more sophisticated; (vii) the globalization ofsociety and development of the Internet and information technologies allow criminals- 18 -

and crime proceeds to cross borders easily. In addition to these difficulties, countryspecific challenges were identified during the Seminar.
A) In Indonesia, investigators must overcome the principle of unus testis nullus testis(“one witness is no witness”), which prevents judges from admitting thetestimony of a lone witness into evidence; the testimony of a second witness isrequired to corroborate the testimony of the first.
B) Indonesian authorities find it difficult to obtain information on financial
intelligence without support from other institutions such as the IndonesianFinancial Transaction Report and Analysis (PPATK).
C) The Vietnamese participants raised the issue of insufficient or outdated
legislation on the subject of confiscation of proceeds of corruption.
D) The Vietnamese participants pointed out that cooperation between LEAs islacking.
12.

Strong Political Will against Corruption and Independence of Anti-corruption
Agencies
All participants shared the view that strong political will is most important to the fightagainst corruption. They also shared the view that Anti-Corruption Agencies shouldhave high independence, good resources, and effective investigative powers.
A) In Singapore, the corrupt Practices Investigation Bureau (CPIB) was formed in
1952. The CPIB has acquired strong independence and enforcement powers. The
Bureau investigates major and minor cases, public and private sector cases, andnot only corruption cases but also other related crimes.
B) The predecessor to the Malaysian Anti-Corruption Commission (MACC) wasestablished in 1967. The strong independence of MACC was assured by law in2009.
C) The Independent Commission Against Corruption (ICAC, established in 1974) in
Hong Kong has been enjoying strong independence, adequate investigative power
and adequate resources. Investigators at ICAC have a sense of professionalism
and maintain confidentiality.
D) The Office of the Ombudsman (OMB) of the Philippines was established in 1987.
Strong independence and seven-year tenure of the Ombudsman are assured by
the Constitution.
E) In Thailand, the National Counter Corruption Commission (NCCC, established in1999) and its successor, the National Anti-Corruption Commission (NACC),
were established as constitutional bodies. Further, the Public Sector AntiCorruption Commission (PACC) has the power to investigate corruption cases
which involve lower-ranking public officials.

- 19 -F) In Lao PDR, the State Inspection Authority (Anti-Corruption Authority) wasestablished under the Prime Minister’s Office in 2001.
G) Komisi Pemberantasan Korupsi (KPK) of Indonesia was established in 2003.
Although KPK shares the responsibility of investigation of corruption cases with
the Attorney-General’s Office and the National Police, KPK is bestowed farstronger investigative powers than the other two bodies.
H) The Anti-Corruption Council and the Anti-Corruption Unit (ACU) of Cambodia
were established in 2010.

13.

I)

In Myanmar, the Anti-Corruption Law was passed by the Parliament in 2013,
which will establish the Anti-Corruption Commission (ACC). The Preliminary
Scrutinizing Team and Enquiry Committee will be formed within the ACC. The
Chief Investigator will investigate corruption crimes under the guidelines of the
ACC.

J)

Despite the absence of a dedicated anti-corruption body, the Japanese Public
Prosecutors' Office has been enjoying high independence and successful
investigation of high-profile corruption cases. Special Investigation Departments(SIDs) were established at the Tokyo District Public Prosecutors’ Office in 1949at several Public Prosecutors’ Offices. The SIDs conduct independent
investigations and are composed of the most competitive prosecutors with greatknowledge, skill and experience to investigate high-profile corruption cases. The
Japanese Police enjoy high independence as well, and they have the highconfidence of the public.

Detecting Corruption Offences
A) Mr. Ang explained effective ways to detect corruption crimes: building up publicconfidence to invite reports of corruption crimes; investigating not only
complaints from known complainants but also from anonymous complainants;
encouraging self-policing within government departments; embarking on targeted
enforcement of corruption-prone areas with other enforcement and regulatory
agencies; embarking on pro-active intelligence projects. He insisted on theimportance of easy accessibility to the CPIB.
B) Mr. Kwok pointed out the importance of having an anti-corruption body tofacilitate an effective complaint system. ICAC has a 24-hour reporting hotline,
and all complaints are promptly investigated.
C) The importance of cultivating insider informants was pointed out by Mr. Kohl
and the Indonesian participant.
D) The participants from Cambodia stated that the ACU has methods of gathering
information from the public, such as receiving letters deposited in the ACU’sletter boxes, receiving e-mails and phone calls directly from the public, etc.

- 20 -

E) The Lao State Inspection Authority has successfully investigated serious
corruption cases in the areas of tax collection, wood extraction, import of vehicles
and public procurement.
F) The participant from Malaysia explained that MACC’s Assessment Information
Committee composed of five top-ranking officers meets every morning to discuss
all reports and to decide whether to proceed with enforcement actions.
G) The OMB of the Philippines gathers financial information from personnel recordsof public officials (201 files), the Statement of Assets, Liabilities and Net Worth(SALN), Local Assessors’ Offices, the Land Registration Authority, local
building officials; Certificates of Yearly Compensation, Allowances and otherBenefits; the Bureau of Internal Revenue; the Securities and Exchange
Commission; the Government Service Insurance System (GSIS); the Social
Security System (SSS), etc.
H) The NACC of Thailand has the power to inspect assets and liabilities of persons
holding political positions and high-ranking state officials. This power is essential
to discovering evidence of illicit enrichment.
I)

14.

The participant from Japan stated that corruption offences are often detectedduring the course of investigation of other cases such as tax evasion cases,
embezzlement cases, securities fraud cases, antitrust cases and so forth.

Protection of Witnesses and Whistleblowers
All participants agreed that the protection of witnesses and whistleblowers is the key
for successful investigation and prosecution of corruption cases.
A) Mr. Kwok stated that ICAC’s comprehensive witness protection system is highly
recommended, which includes 24-hour armed protection, safe housing, newidentification and overseas relocation.
B) The participant from Indonesia stated that the Victim and Witness Protection
Agency (LPSK) plays a key role in protecting witnesses and whistleblowers.
C) The participants from Cambodia stated that building public confidence and trustin ACUs for witness protection is indispensable.
D) The Philippines has a Witness Protection Program (WPP) where witnesses may
be provided with protection, housing and eventual relocation.

15.

Financial InvestigationA) Inquiries to financial institutions
i. Participants from Cambodia, Japan and Indonesia stated that inquiries
to financial institutions are one of the most basic and important tools to
identify the flow of illegal money.

- 21 -

ii. The participant from Indonesia stated that the KPK has the power torequest information from banks or other financial institutions for thefinancial details of suspects or defendants.
B) Suspicious Transaction Reports (STR) / Financial Intelligence Units (FIU)
i. It was also pointed out that information obtained from Financial
Intelligence Units (FIU) plays an important role in the course ofinvestigations in Indonesia and Japan.
C) Identifying the flow of illegal moneyi. The participant from Indonesia stated that the Indonesian Financial
Transaction Reports and Analysis (PPATK) collects suspicioustransaction reports from financial institutions and other reporting
parties.
ii. The participant from Japan stated that SID prosecutors and assistant
officers prepare a comprehensive tabular form of financial transactions
to trace the exact flow of funds between many bank accounts.
Detecting secret funds and pseudonymous bank accounts are both
crucial to identifying the sources of bribes.
iii. The Filipino participants explained how to conduct “lifestyle check
investigations” by assessing the value of property; determining sourcesof income; comparing increases in income with other reported sourcesof income; investigation of immediate friends and relatives;discovering property held in others’ names; conducting surveillance,
etc.
iv. Mr. Kwok pointed out that employing professionally qualified
investigative accountants is very useful to performing financial
investigations.
D) Preserving evidence
i. The Indonesian KPK has the power to block accounts suspected ofharbouring the gains of corrupt activities. It also has the power totemporarily halt financial and other forms of transactions to effectively
preserve evidence and prevent corruption.
16.

Search and SeizureA) The participant from Japan stated that thorough simultaneous search and seizure
is necessary to prevent the concealment and destruction of important evidence.
To do this, the following elements are important: selecting proper places to be
searched, arrangements and preparations; appropriate advanced briefing of thesearch team; maintaining confidentiality; and establishing a good chain ofcommand.

- 22 -

B) The participant from Japan also stated that analysis of seized evidence should bedone swiftly and systematically by establishing analysis teams, sharing theinformation effectively.
17.

Digital Forensics and Expert EvidenceA) Mr. Kwok stated that computer forensics is vital and that investigative authorities
must possess the ability to break into encrypted computers and to recover datafrom destroyed devices.
B) The participant from Cambodia stated that the ACU has a forensics department to
conduct digital forensics.
C) The Indonesian participant pointed out the effectiveness of using expert witnesses
such as auditors, forensic accountants and IT experts.
D) The Myanmar Criminal Procedure Code has a provision on the use of experts on
machines and instruments etc.
E) The participant from Vietnam stated that there are forensics centers operated by
the police and the army.

18.

Interview of Witnesses/Suspects
A) The Cambodian participants pointed out that there are many skills and tactics
(e.g., good preparation, not asking open questions) to interview both suspects andwitnesses. Maintaining confidentiality of witnesses is one of the keys. Securing
confessions from suspects is important to proving the case in court.
B) The Indonesian KPK, the Office of the Attorney General, and the National Police
have the power to ban persons related to investigations from travelling abroad.
C) The participant from Japan stated that interviewing suspects and witnesses isvery important. The reliability of their statements must always be corroborated
by other evidence. He also explained that after some inappropriate interviews
came to light, the Public Prosecutors’ Office has started reforming the interview
system.
D) The participants from Vietnam reported that interviews of the accused are taperecorded, but the statements must be confirmed by investigators.
E) The Philippines has legislation allowing courts to discharge an accused fromprosecution in exchange for the agreement of the accused to testify as a state’s
witnesses.
F) Mr. Kohl spoke on the use of “cooperation plea agreements” or “witness
inducement agreements” to secure accomplice testimony and the use of NonProsecution Agreements” and “Deferred Prosecution Agreements” to address
self-reporting under the United States’ Foreign Corrupt Practices Act.

- 23 -G) Mr. Kwok explained that the sentencing guidelines issued by the Chief Justice ofHK allows judges to reduce up to two-thirds of the sentence of defendants who
plead guilty to corruption offences and testify on behalf of the prosecution.
19.

Special Investigative TechniquesA) Mr. Kwok pointed out that investigation of past corruption offences demands
meticulous investigation, that investigating current offences should always be
preferred where possible, that proactive investigation methods are essential toinvestigating current corruption cases, and that proactive investigation needs
professional investigative support from intelligence, surveillance, technicalservices, and information-technology, financial-investigation and witnessprotection sections.
B) Wiretappingi.

During the Discussion Session, the Chairman surveyed the participants
on whether their countries allowed the use of wiretapping. Malaysia
and Indonesia reported that wiretapping is allowed. Further, theIndonesian KPK can conduct interception or recording ofcommunications without judicial approval.

ii.

Cambodia and Thailand reported that wiretapping is allowed, but it
may only be used for investigation and may not be admissible asevidence in court.

iii.

Vietnam reported that they are now reforming the law to makewiretapping available in criminal proceedings.

C) Undercover Operationsi.

During the Discussion Session, the Chairman surveyed the participants
on whether their countries allowed the use of undercover operations.
Cambodia and the Philippines reported that undercover operations areallowed. Participants from the Philippines also stated that investigators
conduct surveillance to investigate the lifestyles of corruption suspects.

ii.

Vietnam reported that undercover operations are used in practice, but
information derived therefrom is not admissible in court; however, theinformation is still used to obtain confessions.

iii.

The participants from Cambodia stated that the ACU has undercoveragents, and that they disguise themselves particularly as motor taxi
drivers, small ice-cream sellers and so forth, in order to get as close to
the suspect as possible.

- 24 -D) Effective Investigation Management
The participant from Malaysia explained that MACC has embarked on a largescale transformation to employ an Effective Investigation Management Model(EIM). The five components of the EIM are: (i) quality information and caseanalysis; (ii) investigation plan; (iii) team-based investigation; (iv) casemonitoring; and (v) outcome.
20.

Proceeds of CorruptionA) Confiscation of the original value of proceeds is possible in Cambodia.
B) A new initiative for targeting stolen assets was explained by the participant fromIndonesia. He also emphasized the importance of international cooperation in theasset recovery process.
C) To trace the proceeds of corruption, the Office of the Ombudsman (OMB) of thePhilippines conducts “lifestyle checks” or “lifestyle investigations” incooperation with the Civil Service Commission (CSC), the National Bureau of
Investigation and other agencies. The details of case initiation, case evaluation,collection of documentary and testimonial evidence, and methods of proof wereexplained.

21.

The Importance of CooperationA) Every participant recognized the importance of domestic cooperation between
anti-corruption authorities, police forces, prosecution services (including
Attorney General’s Offices), anti-money laundering offices and othergovernmental authorities to combat corruption. Some participants also pointed
out the importance of cooperating with the private sector.
B) Every participant shared the recognition of the importance of international
cooperation to catch criminals, collect evidence and seize corrupt money in thisglobalizing society.

22.

Effective Legislation
A) Mr. Ang pointed out that effective and enforcement-friendly laws give the CPIB
the necessary teeth and a cutting edge. He shared some examples from thePrevention of Corruption Act: acceptance of gratification without quid pro quo is
an offence; wealth disproportionate to income is admissible as corroborative
evidence of corruption at trial; every person under investigation is legally obliged
to give information; customary practices (such as wedding and New Year’s gifts)
are not valid defences against corruption; extra-territorial jurisdiction; strict
punishment acts as a deterrent.
B) Hong Kong and Singapore have criminalized corrupt activities in the private
sector.

- 25 -C) During the Discussion Session, the Chairman surveyed the participants on thecriminalization of “illicit enrichment”. Cambodia, Malaysia, the Philippines andThailand reported that they have criminalized͆ illicit enrichment”. Although
Vietnam has not criminalized “illicit enrichment”, it has other laws, such as
embezzlement, to address such conduct.
D) Lao PDR has criminalized abuse of position, abuse of state property, cheating or
falsification, deception in bidding and concessions, forging documents, disclosureof state secrets, holding back or delaying documents.
23.

Preventive and Educational Measures
This Seminar was mainly focused on the effective investigative techniques against
corruption. However, all participants agreed that preventive and educational measures
are also critically important and that these measures must be used with enforcement
so as to maximize synergies. The following preventive or educational measures whichwere explained during this Seminar are worth mentioning.
A) Mr. Ang explained the “Public Service in the 21st Century” strategy in Singapore
to establish good governance.
B) Mr. Mustafar explained the robust preventive measures employed by MACC suchas: deployment of ex-MACC officers as corruption prevention officers in theprivate sector, introduction of Certified Integrity Officers, signing of Corporate
Integrity Pledges (CIPs) with the business sector and so on. The Malaysianparticipant further referred to advisory letters, warning letters, review of work
flow, and job rotation as preventive measures and as alternative enforcement
actions to prosecution.
C) Cambodia has started the TECHO operation where public service fees are fixedby each ministry.
D) The Cambodian ACU held seminars on the dissemination of the Anti-corruption
Law at many universities and districts.
E) The Indonesian KPK has the power to order a suspect’s superior to suspend thesuspect from the office.
F) The Lao State Inspection Authority is making many efforts at prevention andeducation of corruption including holding workshops at different levels,
advertising via print and other media, education, awareness raising, making
government structures transparent, etc.

24.

Importance of Capacity BuildingA) All participants recognized the importance of recruiting capable employees anddeveloping their capacities by both off-the-job and on-the-job training.

- 26 -B) Mr. Ang stressed the need for investigators to understand how the public sector
acts and how the private sector does business. They must be capable of learning
quickly and understanding what is going on so as to take effective action.
C) Mr. Kwok emphasized that investigators should be trained to understand thetypical acts or stages of corruption: the “softening up” process; soliciting bribes;
withdrawal of funds from banks; payment of bribes; disposal of bribes; acts ofabuse of power. The task of investigators is to collect sufficient evidence to proveeach of these stages. They must understand the process of investigating
corruption cases, including the preliminary, protracted and overt stages ofinvestigation. He also pointed out that to perform proactive investigation,
professional training and operational support are essential.
Kuala Lumpur, 5 December 2013- 27 -