STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND HUMAN RIGHTS FOR MALAYSIA the Commission’s National Inquiry on the Land Rights of Indigenous Peoples noted allegations of abuse of power and conflicts of interest in relation to land offices, which caused or contributed to alleged adverse business-related impacts on indigenous peoples’ land rights.52 It is worth noting that according to the World Bank’s Worldwide Governance Indicators, in 2013, Malaysia’s percentile rank in terms of the rule of law was 64.5,53 and its percentile rank in terms of control of corruption was 68.4.54 52. With regard to controlling corruption, the Commission commends the Malaysian Anti-Corruption Commission (MACC) for spearheading the Government’s National Key Results Area on Fighting Corruption, and for advocating and soliciting the pro-active role of the private sector in supporting the agenda, including through the signing of the Corporate Integrity Pledge (CIP) and the appointment of Integrity Officers. However, as of January 2015, only 512 organisations (90 from the public sector, 405 from the private sector, and 17 NGOs) have signed on to the CIP, thus demonstrating an urgent need for stronger emphasis to be placed on non-voluntary measures, frameworks and approaches to signify seriousness in addressing the agenda. 53. Recommendation: The Commission therefore recommends that: i. The Government, when addressing specific business and human rights issues, identify challenges to law enforcement that are causing or contributing to the adverse human rights impacts in question, and take effective steps to address these challenges, such as by allocating adequate resources, building enforcement capacity and strengthening anti-corruption measures. iii. To enable and strengthen a transparent and accountable relationship between the Government and the private sector, and towards a reduction of corrupt practices, the Government should table an inclusion of a corporate liability provision in national law, whereby companies are liable when corrupt practices are proven in the court of law to have been conducted as part of its business transactions and operational activities. As Malaysia is a State Party to the UN Convention against Corruption (UNCAC), the Government is also encouraged to fully explore the variety of measures outlined in Articles 12.2 and 12.3 of the UNCAC that State Parties may undertake to fulfill their obligation to prevent private sector corruption and enhance auditing and accounting standards in the private sector. Relevant federal and state government bodies: MACC. Other relevant line ministries and enforcement bodies may be involved depending on the specific thematic issues or sectors the NAP will address. (4) Improve mechanisms for responding to regulatory gaps identified during the Universal Periodic Review (UPR), the processes of international human rights treaty bodies, and by regional and national human rights institutions 54. The UPR and international human rights treaty body monitoring mechanisms are useful avenues for States to effectively respond to business and human rights issues. They provide a credible 18

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