The absence of specific laws governing online crowdfunding has created a loophole that allows the widespread misuse of public donations, according to the country’s top anti-graft official.
Malaysian Anti-Corruption Commission (MACC) Chief Commissioner Tan Sri Azam Baki said irresponsible individuals are exploiting social media platforms to raise funds under the guise of religious or charitable causes, only to divert the money for personal use.
“There are cases where donations are allegedly collected to build a mosque, but the funds end up being given to the organiser’s wife. This is very saddening,” he said.
Azam was commenting on a report by Harian Metro which stated that three well-known non-governmental organisations (NGOs) are under investigation for allegedly accumulating wealth through crowdfunding activities.
He said there are currently no specific laws regulating crowdfunding, particularly those involving online payment platforms.
“Platforms such as Instagram, Facebook and TikTok make it very easy for fundraising to be carried out repeatedly,” he said.
“Most Malaysians spend their time on these platforms. When they see a post, they immediately contribute RM10 or RM20. In addition to social media, donations are also being solicited through WhatsApp,” he added, noting that he himself has received donation requests via the messaging app.
Azam said while analyses have been conducted on several organisations, the lack of dedicated crowdfunding legislation remains a major challenge in taking enforcement action.
He stressed that the issue cannot be addressed by MACC alone and called for coordinated monitoring by multiple government agencies.
“The relevant authorities must take responsibility to protect public funds, rather than placing everything on my shoulders,” he said.
Azam also reminded the public that anyone intending to collect donations must first obtain approval from the relevant authorities, and that fundraising should only proceed after clearance has been granted by regulators.
