In a pivotal move to combat corruption within the construction sector, all companies registered with the Construction Industry Development Board (CIDB) must obtain ISO 37001 Anti-Corruption Management System (ABMS) certification within the next two years. This announcement was made by Tan Sri Azam Baki, Chief Commissioner of the Malaysian Anti-Corruption Commission (MACC).
Starting from this deadline, only construction firms with ABMS certification will be eligible to bid for government contracts exceeding RM100 million. This initiative is part of a broader strategy to ensure integrity and transparency in public procurement, especially for projects overseen by the Ministry of Finance.
“The National Governance Committee, chaired by Prime Minister Datuk Seri Anwar Ibrahim, has agreed to this requirement as part of our ongoing efforts to eradicate corruption in the tendering process,” Azam stated at the launch of the 3rd National Research Conference on Governance, Integrity, and Anti-Corruption.
Currently, companies without ABMS certification can still participate in bidding for government contracts; however, this will change after the two-year period. Firms lacking the certification will be barred from pursuing significant government projects, emphasizing the urgency for compliance.
What is ISO 37001?
ISO 37001 is an international standard that helps organizations establish, implement, and maintain effective anti-corruption management systems. The standard provides a comprehensive framework for detecting, preventing, and responding to corruption risks, ensuring compliance with legal requirements and fostering a culture of integrity within organizations. By implementing ISO 37001, companies can demonstrate their commitment to ethical practices and enhance their reputation in the marketplace.
Why ISO 37001 Certification Matters?
The ISO 37001 standard helps organizations establish, implement, and maintain effective anti-corruption measures. It provides a robust framework for detecting, preventing, and responding to corruption, ensuring adherence to legal requirements and voluntary commitments aimed at fostering a corruption-free environment.
Azam cited a report from the Royal Institution of Chartered Surveyors (RICS), predicting that the construction sector could face a staggering US$5 trillion in global leakage by 2030 if corruption is not effectively addressed. In Malaysia, the construction sector remains under close scrutiny by the MACC, particularly regarding projects involving government contracts.
“There have been numerous instances of financial leakage identified, including corruption within administrative processes, which inflate project costs,” he remarked.
Dr ISO Malaysia: Your Partner in Compliance
As an ISO certification company, Dr ISO Malaysia is committed to helping construction firms navigate this evolving regulatory landscape. Our expertise in guiding organizations through the ISO certification process is essential for ensuring compliance with the new requirements.
By obtaining ISO 37001 certification, your company not only positions itself favorably for government contracts but also contributes to a culture of integrity that is vital for sustainable growth in the construction industry.
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For more information on how Dr ISO Malaysia can assist your organization in achieving ISO 37001 certification, contact us today. Let’s work together to build a transparent and corruption-free future for the construction sector.