The anti-graft group cited a recent case in which the Malaysian Anti-Corruption Commission recovered RM900 million in unpaid taxes from a company, comprising a RM600 million penalty and a RM300 million compound, without filing any criminal charges.

TI-M said such settlements undermined public trust, weakened deterrence and eroded the integrity of Malaysia’s enforcement and justice institutions.

“While TI-M acknowledges that asset recovery returns funds to the public purse, it is not, and must never be treated as, a substitute for accountability,” it said in a statement today.

The NGO also warned that justifying settlements on the grounds of “pragmatism” or evidentiary difficulties risked sending a dangerous signal that the wealthy or well-connected can effectively avoid criminal liability.

“If left unchecked, this mindset will institutionalise a pay-to-settle culture that corrodes the rule of law,” it said.

MACC chief commissioner Azam Baki reportedly said that a joint investigation with the police revealed that the firm had failed to pay its taxes, resulting in a RM600 million penalty and a RM300 million fine. The company paid off the penalties.

He also said that he could not name the firm for now, even though the authorities had successfully recovered the funds in question.

TI-M called for urgent reforms, including the public disclosure of individuals or companies involved in major asset recoveries, and clear national guidelines governing compounds and forfeitures.

“Financial settlements must not become the endpoint of corruption cases in Malaysia,” the anti-graft group said, reiterating that no one should be above the law.