MACC continues to probe RM700mil advertising spend: How the MY ad scene can remain clean

The Malaysian ad scene has been in a frenzy over the last few weeks after the Malaysian Anti-Corruption Commission (MACC) launched an investigation into a 2022 'Keluarga Malaysia' campaign for alleged corruption links to the former prime minister Ismail Sabri Yaakob.

As a result of the investigation, contracts awarded for the campaign's promotional materials, such as billboards, have been under scrutin. MACC has also recorded statements from Yaakob,Toh Puan Nai'mah binti Abdul Khalid - the wife of the former Minister of Finance Tun Abdul Daim bin Zainuddin - and their two children, Muhammad Amin Zainuddin bin Daim and Muhammad Amir Zainuddin bin Daim in relation to the incident.

The investigation is part of MACC's wider investigation of the government's RM700 million expenditures on advertising, promotions and publicity efforts from 2020 to 2022.

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Creating accountability in the adland space

With intense scrutiny being placed on a major government campaign, adland players in Malaysia have certainly been made to think more about accountability in public fund spending, particularly when it comes to government ad campaigns.

According to Ashvin Anamalai, chief executive officer of DNA Creative Communications, the case raises serious concerns about accountability in public fund spending. He added that transparency is paramount when utilising any amount of public funding for advertising and promotions, particularly during times of public vulnerability.

"The scrutiny of contracts and the broader investigation highlight the necessity for thorough oversight and adherence to ethical practices. The government's obligation to disclose expenditures ensures public trust and emphasises the people's right to know," Anamalai told A+M.

As a result, addressing these concerns proactively, ensuring transparency and cooperating with investigations are essential for restoring public confidence and upholding the integrity of public funds, he said.

This is particularly so because investigations into the corruption case are ongoing. As a result, the impact may not be immediately pronounced.

As such, a responsible and prudent approach to government pitches and remits remains essential. This is especially since engaging in public sector work can be exciting as it offers the chance to contribute to positive changes on a national scale, said Anamalai.

According to Anamalai, marketers and advertisers can prevent corruption from happening within their campaigns with transparency, detailed proposals and outcomes. He said:

This in turn will foster a trusting relationship based on respect and the intention to deliver quality work.

It is also essential to cultivate a deep understanding of the government's objectives and priorities, said Anamalai. This may involve conducting thorough research on the specific needs and expectations of government agencies so that marketers can tailor their strategies accordingly.

"If awarded a job through an open-pitch, maintaining transparency throughout the entire process is critical. Marketers should provide clear and detailed proposals, outlining their methodologies, costs, and expected outcomes," said Anamalai.

A lasting impact on the ad scene

While the case certainly highlights how more needs to be done to ensure transparency and accountability for pitches, Professor Mohd Said Bani C.M. Din, founder and managing director at bzBee consult explained that the damage has likely already been done and that there will be a lasting impact for agencies.

“Alleged corruption cases in government procurement can significantly impact communication agencies involved in government campaign pitches," he said.

Said added that it can lead to increased scrutiny of their practices, erode trust in their credibility and potentially damage their reputation.

From a communications agency perspective, Said explained that governments involved in corrupt practices may “suppress or manipulate news and media outlets to control public opinion and maintain their power", thus limiting communication professionals' ability to access accurate and unbiased information for their work.

Communication professionals working in an environment of corruption may face ethical dilemmas too, said Said, as they may be pressured to engage in unethical practices such as manipulating information in order to secure government contracts or maintain positive relationships with corrupt officials.

An environment of corruption in government undermines the communications industry by hindering transparency, limiting access to information, eroding trust, impeding infrastructure development, and creating ethical challenges for communication professionals, he said.

Said added that it is crucial that the investigation is conducted diligently and transparently to maintain or rebuild public confidence in the system's integrity.

In addition, he added that media coverage of the alleged corruption should be responsible, uphold journalistic integrity and ethical communication standards so that the public is informed without prejudicing the investigation or the reputation of those involved, saying:

Transparency in the investigative process is crucial, to demonstrate commitment to the rule of law rather than political agendas.

Creating guidelines for prevention

Preventing corruption, in the opinion of Anamalai and Said, may come in several steps, but are nonetheless simple to understand and execute.

Said explained that clear policies and procedures that outline how the agency will engage with government entities and handle finances will aid in preventing corruption. This includes guidelines for procurement, bidding processes and contract management.

Ethical guidelines, including comprehensive code of ethics, staying updated on relevant laws and regulations governing government campaigns, contracts and procurement practices, as well as a regular training and awareness programs on how to identify and report behaviour are just some of Said's suggestions on preventing corruption in the ad industry.

Said also added that a 'whistleblowing mechanism' should be established as it promotes a confidential and secure mechanism to encourage employees and stakeholders to report any suspected corrupt practices without fear of retaliation.

"Another key aspect is financial transparency, including accurate bookkeeping, auditing processes and clear financial reporting to ensure all transactions related to government campaigns are properly documented and accountable," said Said.

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