Although the New Economic Policy of Malaysia adopted almost 30 years ago has generally met nearly all of its main social and economic objectives, the creation of dozens of public enterprises to implement hundreds of socioeconomic measures that enjoy wide discretionary powers has led to corruption, both grand and petty. In the closing years of the 1970's, corruption had become a factor of considerable significance in the national economy. The Anti-Corruption Agency was established in 1967 with the primary function of combating corruption previously handled by the police. In 1988 the government recognized the need for a high-level national body to address weaknesses in public service financial administration. A special Cabinet Committee on Government Management was established under the chairmanship of the Minister of Finance. Matters highlighted by the Auditor-General, the Anti-Corruption Agency, and the Treasury were investigated and remedial action taken. Compliance by heads of departments is crucial to the success of the Committee's work. In April 1997 the government took another important step in developing and strengthening its own integrity system by creating a high-powered Cabinet Committee on Integrity in Government Management. Also in 1997 the government passed the Prevention of Corruption Act, the most important weapon in the government's legal arsenal for dealing with the new, more sophisticated forms of corruption facing the country. A grave shortcoming in the Malaysian anti-corruption mechanism is that the Anti-Corruption Agency is not an independent commission. It is a government agency, and members of the public do not trust its impartiality, since it reports to the Prime Minister. Still, Malaysia has been largely successful in cutting the financial ties between private corporations who wish to influence government decision-making and public officials who wish to increase their incomes and their political power.