Page 43 - BPAReport

36. This shortcoming is different from the other more disturbing problems stemming from
how the functions have been outsourced without open tender, with the duration of
concessionaries granted containing inflexible conditions and pricing schemes which are
unfavourable to Government finances. These dishonest and unlawful practices are
highlighted further below.

37. At the same time ironically, it appears that insufficient financial and human resources
have been allocated to the multiple agencies involved in undertaking their enforcement tasks
effectively. Together with the inefficiencies from inadequate coordination, insufficient and
poorly trained staff have contributed to a situation of weak and even absence of proper
enforcement of compliance with procedures and applicable immigration and employment
laws as well as international norms. This has resulted in the abuse and mistreatment of
foreign workers, affecting negatively the ratings and international standing of Malaysia for
the protection of workers. This situation is particularly exasperating because in the other
areas of their operations e.g. issuing passports, a few of these regulatory agencies have
received super star ratings for the adoption of innovative technologically advanced
applications.

38. For enforcement purposes principal reliance is placed on a range of specifically
created identification documents and credentials. Several issues and complaints were raised
by stakeholders about identification documents and their verification. While ID cards have
been provided to several categories of foreign workers, they are not standardized and they do
not receive common recognition among the different enforcement agencies involved.

39. When a documented worker is intercepted by the police, the well-known complaint is
that the officer may choose not to accept the proffered worker ID issued by the immigration
department and demand sight of a passport with the employment pass attested. These actions
are usually associated with improper disguised attempts to solicit bribes and unfortunately
occur very often near locations where foreign workers are employed, reside or congregate.

4.8 Corruption and rent seeking practices

40. Other than in the course of enforcement activities, corruption rears its head most
rampantly during the recruitment stages of the foreign workers management process.
Corruption is also most likely at the stage where the foreign workers sojourn in Malaysia is
administered. Corrupt practices are taking place of course in both source countries and in
Malaysia, where their incidences are more insidious.

41. The most absurd of these corrupt practices must be the questionable and nontransparent
appointments of recruitment agencies or outsourcing entities for sourcing foreign
workers. Many of these entities had been established specifically to undertake the activities
granted even though it is obvious they do not have previous experience and track record in
such a business. The dishonesty is overt and blatant as these firms are purportedly associated
with politicians, serving members of the legislature or other branches of government or their
family members, former government officials and other proxies of these groups. There is then
collusion with similar corrupt and well connected groups in the source countries in the
recruitment of workers.

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