MCMC set to gain expanded audit powers with proposed amendments to Communications and Multimedia Act

KUALA LUMPUR, Dec 2 — The new amendments proposed for the Communications and Multimedia Act 1998 will introduce new sections that would enhance governance and efficiency, and empower the Malaysian Communications and Multimedia Commission (MCMC).

The proposed new section Section 73A — audit by the Commission — would allow the Commission to conduct an audit on any licensee or any person providing services related to communications system on any matter under this Act, its subsidiary legislation, any instrument issued under this Act or any information which the licensee or other person furnishes to the Commission.

What this also means is that the Commission in carrying out the audit, it is allowed to:

• Authorise any of its officers, agents or technical advisers to conduct the audit.
• The Commission or any of its officers, agents or technical advisers may enter the premises of any licensee or any other person providing services related to the communications system; and obtain any information pertaining to the licensee or any other person providing services related to communications system and shall be given access to such information whether stored in a computer or otherwise.
• The Commission may request the licensee or any other person providing services related to communications system to bear the cost of the conduct of an audit, as it deems necessary.
• The Commission may designate the licensees or any other persons providing services related to communications system that are to be subject to an audit.
• A licensee or any other person providing services related to communications system who refuses to assist or facilitate, or obstructs the Commission, its authorized officers, agents or technical advisers in conducting an audit under this section, commits an offence.

As for Section 73B — independent audit — this allows the Commission to at such intervals as determined by it, require any licensee to appoint at its own cost an independent expert to audit on any matter under this Act, its subsidiary legislation, any instrument issued under this Act or any information which the licensee furnishes to the Commission.

Under this Section, audits conducted must follow the Commission’s guidelines or directions under Section 51; the Commission may specify which licensees are subject to an audit; licensees must prove to the Commission that the independent expert conducting the audit is qualified and competent; licensees must submit the audit report to the Commission within the specified timeframe; and failure to comply with this section constitutes an offence.

Section 51 allows the Commission to issue written directions to any person to ensure compliance with licence conditions, address breaches, and enforce the provisions of this Act or its related regulations.