Protect And Reward Those Who Expose Cartels Says Think Tank

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Informants who expose price-fixing, market manipulation or other cartel operations should be rewarded, says a think tank.PETALING JAYA: Only four whistleblowers have responded in eight years to an initiative to expose price-fixing cartels, according to a think tank funded by the Chinese business community.
The Socio-Economic Research Centre said the government should provide rewards for informants, and ensure that whistleblowers get better protection.
It said the dismal response to the current “leniency programme” could be due to the lack of immunity for corporate whistleblowers.
Another factor could be a lack of awareness of the initiative itself, said SERC executive director Lee Heng Guie at a conference organised by the Malaysia Competition Commission.
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Lee Heng Guie.He said the “leniency programme” is provided for in the Competition Act. Those involved must admit to infringing on a ban on certain agreements between companies or cartels.
Such infringements include the fixing of prices or any other trading conditions, sharing market or sources of supply, the rigging of bids and tenders, as well as limiting or controlling production.
Lee said cartels were detrimental to the economy, the market and society. “People should step forward to share information and prevent cartels from being formed.”
He added that cartels were shrouded in secrecy and this made it difficult for them to be exposed.
Lee said that competition agencies around the world relied on leniency policies or programmes to entice more people to step forward and report on illegal practices, such as cartels.
He said under the current law, corporate whistleblowers who admit to their involvement in cartel-like operations could have their financial penalty reduced by a maximum of 100%.
SERC is a think tank under the Associated Chinese Chambers of Commerce and Industry of Malaysia. - FMT

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