Evil is uncomfortable having good near to it, and good is well aware that evil does not want it to be there. The proverb is about the corrupting influence of evil especially when it is in a position of power and authority.
Each one of us is called to be a centre of truth, keeping the ninth commandment, and disregarding the influence of those who may be in authority and who prefer a lie. We must have an allegiance which goes over the head of any passing earthly power and looks to the Lord God whose kingdom will never be removed. He requires from us absolute truth, and we must not be intimidated by any close at hand counterinfluence.