BN and PR : Extra 'payments' when public officers hold positions as Directors, etc..??

Does the MB, State Exco Members, Cabinet Members, Ministers, Public Servants (often referred to as 'government servants', Local Councilors,  MPs, ADUNs....get bonuses, allowances, perks etc when they are appointed to sit on Boards, Committees,...of government-owned companies and/or government-linked companies?

I believe that there should be no other additional perks, bonuses, payments, etc - because they are so appointed by reason of the fact that they are the MB, State Exco Members, Cabinet Members, Ministers...and it is part of their job....by reason of their positions in government...

See earlier post:-Selangor MB/ADUNs/MPs should not be getting Director's allowances from State-owned companies

Now, it has been revealed that the UMNO-led BN government, or at least as far as ex-Selangor MB is concerned, it is OK that they get additional perks, allowances, etc by virtue of their holding positions in the Board of Directors, etc... 

Asked about the 'incentive payments' he received as chairperson of the State Development Corporation (PKNS), he described this as standard practice and due payment for his efforts in the government-linked company (GLC).

“Every CEO in every private company (gets bonus payments). It's the same here. Being MB and as chairperson of PKNS are two different things. We need to spend extra time (working).”  - Malaysiakini, 15/9/2010, Q&A: 'I deserve more perks than I got' [The full article is pasted below]

Further, as a matter of policy and  practice, no CEOs and/or Directors of government-owned companies should be earning more than the salary of the Menteri Besar (and/or State Exco). Likewise, there must also be a guideline when it comes to government-linked companies as well...they should never be earning 'too much' - certainly not more than what the PM earns. [It is also wrong for these CEOs and Directors to be paying themselves so much to the detriment of their share-holders, and in terms of government owned (or partially owned) companies to the detriment of the people] That is why I believe that it was so wrong for the Selangor government owned KSSB to be paying out so much monies as bonuses/allowances to its CEO, Staff, (Directors?) when this money should rightly have been the money of the people of Selangor.

The TNB CEO earns about RM92,000 per month in 2006/7(based on 2007 Report) - surely now it is even higher. This means that he earns more than a Member of Parliament...more than a Menteri Besar...more than a Minister...and more than the Prime Minister.. - this is so wrong. Is this not a government company? Money should be used in keeping price of electricity down - not wasted in excessive salaries.

Contrast their household income with the remuneration of the Tenaga Nasional Bhd CEO, who earns over RM1 million per year:

Basic salary RM600,000
Bonus RM302,000
EPF contribution RM113,280
Car allowance RM42,000
Flexible benefits RM50,000
Total RM1,107,280
Figures are from TNB’s 2007 Annual Report.

That translates to RM92,273/month for running what essentially amounts to a monopolistic service. Has he succeeded in renegotiating the Power Purchase Agreements with the IPPs? Tenaga is bleeding from these PPAs, under which it has to pay the IPPs ‘capacity payments’ for electricity it doesn’t really need. - Anil Netto's Blog

 [See also:-ELECTRICITY: BN's failures causes more suffering to the people - do not increase electricity charges]

Kumpulan Semesta Sdn Bhd's (KSSB) board of directors received the biggest slice of the generous bonuses dished out by the Selangor government-owned company in the first nine months of its operations, its chairperson said today.

Testifying at the second day of the Selangor Competency, Accountability and Transparency (Selcat) committee probe into the company, Abdul Shukor Nagor (at the mike in photo below) said the company's executive director received the biggest bonus – a whopping RM82,000 for the financial year ending June 2009.

In total, the company paid out RM503,613.59 in bonuses to 45 people that financial year, with the board of directors and three senior managers receiving a four months' salary as bonus while the bulk of the frontline staff received a one-and-a-half month's salary as bonus. - Malaysiakini, 3/6/2010, Selcat hears of KSSB's RM500,000 bonus payouts

See also:- Will Selangor Khalid's 'Najib-like Index' guarantee "cleaner and corruption-free administration" Selangor?

In fact, when a person is the PM, MB, Cabinet Member, State Exco, (maybe even Local Councillor), etc, they should not be earning 'other money' other than their statutorily fixed wages and allowances.  Of course, this not include dividends they get from their shares, unit trusts they already hold when they took office. This also does not include earnings they get from rentals of premises they own, income from other kebuns, business interest they have before they took office - but all these other sources of income must be declared.

In Thailand, a recent Prime Minister was ousted because he received money for participating in a cooking show... Malaysia should have a similar position.

Those who accept public office like PM, MB, Cabinet Member, State Exco, Local Councillors...and maybe even MPs/ADUNs should be focusing their attention and time carrying out their duties and responsibilities of their office. They should not be wasting time and energy doing other work and earning money, and if they would want to do so, then they should just resign. Same should also apply to judges and other public servants. If their existing pay/salary/allowances for holding public office is not sufficient to ensure a 'decent living', then maybe we should ensure that their pay/allowances should increase. For a start, maybe we should increase the pay/allowances of MPs, ADUNs...and certainly Local Councilors so that they can dedicate 100% of their time and energy to the public office that they have been elected to (or now hold).

EXCLUSIVE Working 18-hour days for the eight years is no joke, said former Selangor menteri besar Dr Mohd Khir Toyo.

And for this hard work, he feels that he not only deserve the perks that he received during his tenure in office, but that he should be getting even more.

Khir was responding to questions about his trip to Disneyland in Paris, which rubbed Pakatan Rakyat the wrong way and led to a report to the Malaysian Anti-Corruption Commission (MACC).

According to him, the trip was merely a stopover during a trade mission to Germany.

“I dropped by France, on the way to Germany. We had some spare time, so we visited Disneyland to for the experience. We did not go (to visit) Disneyland only.

“I brought back RM3 billion (in investments) from that trip. It's not easy. Do you think it's fun going overseas?”

Asked about the 'incentive payments' he received as chairperson of the State Development Corporation (PKNS), he described this as standard practice and due payment for his efforts in the government-linked company (GLC).

“Every CEO in every private company (gets bonus payments). It's the same here. Being MB and as chairperson of PKNS are two different things. We need to spend extra time (working).”

Khir also claimed to be uninterested in the MB's post, preferring to play second fiddle to BN Selangor deputy chairperson Noh Omar and newly-appointed BN senator Ezam Mohd Noor.

Excerpts of the interview follow, with content edited for language and brevity.

Malaysiakini: When former transport minister Dr Ling Liong Sik was charged over the PKFZ issue, there was speculation that…

Dr Mohd Khir Toyo: My name was up. I don't take this to heart. I knew two or three days ahead, but I did not worry. Our country has laws, has systems. Those who are guilty will get their due. The court will decide. Don't be so quick to form perceptions that a person has a case against him. Ling may not be guilty.

One of the allegations that has been getting a lot of play is that your house costs RM24 million. Don't you think you should call an independent real estate agent to value your house and put the matter to rest once and for all?

(Real estate developer) Rahim and Co have valued my house. I put this all on my blog, didn't I? Is Rahim and Co not independent? They were bank-appointed, I didn't appoint them. Surely the bank would not have been so dumb as to let me appoint my own real estate company. I got a bank loan (for the house). If I bought the house with cash, then people can query me.

[In his blog entry dated July 9, 2009, Khir posted the loan agreement between him and HSBC Bank for a loan of RM3 million. The house and the land were valued at a total of RM3.5 million, and he had spent RM600,000 on renovations. The loan is to be serviced for 23 years, with monthly repayment of RM18,743. The base lending rate is 5.25 percent, a 1.5 percent discount off HSBC's base lending rate at the time the loan was approved in 2007.]

I deny all the allegations. That's why I sued (Sekinchan assemblyperson who made the allegation) Ng Suee Lin. This person did not even pass his mathematics examination in STPM. ...When I sued him, I asked him to state how he came up with the figure RM24 million. He could not answer because this is just a political allegation by a political animal.

I don't understand why we have to put our level of thinking on par with him, by believing what he says. Is he a contractor? Did he pass a subject in property valuation, or have experience in the industry. He is a sundry-shop owner.

If I am called up (by the authorities) I will go. In fact, I will declare everything, all my assets.

Moving on to another allegation, about your trip to Disneyland in Paris...

This is not an issue. I dropped by France, on the way to Germany. We had some spare time so we visited Disneyland to for the experience, we did not go (to visit) Disneyland only. I brought back RM3 billion (in investments) from that trip.

Every year I went abroad on three (trade missions). I went to Japan, Korea, Europe, the United States, to attract investments. If I stayed in the country, it would be like how it is now. That won't do. That 'trip to Disneyland' got us (German manufacturers) Q-cell.

Were extra expenses incurred? For example, did you take along too many people?

They paid for their own trip. People can follow on my trip as long as they pay their own expenses. If you want to negotiate with large companies, you cannot just go on your own. You have to bring officers, an entourage, so that when there are problems you can sort it out there and then.

So how many of these trade missions led to investments?

That one trip alone brought in RM3 billion. The rest - RM1 billion, RM2 billion. I went to Japan and got RM1 billion. That's why we got RM11.87 billion in investments.

So you are claiming that all your expenditure abroad has been covered by the investment that you brought in?

Yes, it generated many job opportunities - 30,000. It's not easy. You think it's fun to go overseas?

Could your trips been cheaper though?

The thing is now, okay, I will be honest and say that I followed general orders. I adhered to the rules.

Sure, but could these have been cheaper?

Okay, so now you want to go on that? You don't question the prime minister flying first class. Same thing. I don't see why it is wrong. If there is a problem, then take action against me.

You were just enjoying the perks?

I think, if you want to consider perks, I worked 18 hours days. I should get more, in fact.

You were also paid incentives by PKNS as head of the board of directors when you were MB.

I think everybody, every MB gets these payments, including (incumbent MB Abdul) Khalid Ibrahim.

That's true. He recently got a cheque and is apparently upset over the payment because it was never discussed at board level.

(Sniggers) That was (the case even) from the previous MB (before me). We only followed.

You didn't question it?

No. Every MB gets it. All of them. As far as I am concerned (this is standard practice). Because we spend so much time with (the board of directors). We follow the bonuses that the officers get, and this is business. We do not use the rakyat's money.

And as for offers to buy discounted land?
Only once, in my whole life. Once. Near Bangi, lots for three houses I think. I don't remember any more.

You never felt that you shouldn't take it?

As far as I am concerned I did not take what rightly belongs to the Selangor people.

It was your right...

PKNS makes money by doing business. Every CEO in every private company (gets bonus payments). It's the same here. Being MB and as chairperson of PKNS are two different things. We need to spend extra time (working).

This is then payment for your extra efforts for the GLCs...

Yes, if the companies draw losses, it is I who has to answer, right? This is business. Business is business.

And the apartments in Mecca?

I bought them under my name, in trust, as chair(person) of PKNS. They belong to the state.

Can they be transferred to the state at all?

I have asked them to do it.

But it has yet to be done?

They seem to not want to. I don't know. I would sign any papers they send me.

You answered a query about this on your blog. You said that you were authorised to buy five but because it was such hot property you took thought it was a good opportunity and took up the offer to buy more.

No, I said that when I was there we were offered more. When I was lining up for the purchase with the rest of the crowd, I got an offered more than five, so I asked the state if they were willing (to buy). They couldn't afford more because it was cash on delivery. So we offered to others because otherwise we would have lost our deposit.

That's the thing, the board said buy only five; but why did you buy more?

I got offered more. The board said buy five, (but) when I was there I was offered more. I told the board if you don't want to buy, why don't you look for another buyer.

This was before you made the purchase.

Yes. I did it all with a clear mind. Nothing to hide. Until now they have not issued me with any documents to sign (to transfer ownership) I was not at all involved in the management, transactions, nothing. Not a single sen went through my account.

So there were only five apartment units, not more?

Lima (five) for Permodalan Negeri Selangor Bhd , lima for Kumpulan Darul Ehsan Bhd.

Bought with the full knowledge of the board of directors...

Yes, I followed instructions.

Did you follow or give instructions to your people to shred state documents the night you lost Selangor in the general election?

That's not right. I am nice for not suing the state government (for making such claims). There was no instruction from me at all.

No documents were shredded?

Shredding is done under departments. So I don't know. Normally, departments will destroy documents which have been classified. It's normal.

When I left the MB's office I did not take a single form with me. Not a single thing because I could not even enter (the premises). We didn't expect that we would lose but we did, and (the office was) already cordoned off that night. How could I have taken out the documents at nine at night? Nobody could go in or go out.

Some of your officers would have had access to the office.

Some of them. Some are with (the state government) now. In any case, executive council papers are classified under the Official Secrets Act (OSA), they cannot be shredded just like that.

So no shredding took place that night?

This is like what (PAS president) Abdul Hadi Awang said when they won Terengganu. It was said lorries of documents were carted out, but there has yet to be evidence of that. All the documents are under OSA. You can't just remove or destroy them just like that.

Did you at any time during your tenure abuse your power, or were you involved in any corrupt practice?

So far, no.

Have other reports been lodged against you with the MACC?

So far, no, but in future I don't know. People may report just to keep me quiet.

But if you have nothing to hide…
That's why I always say, if it's good for Selangor, you say it. I am concerned for Selangor because I was involved in developing it. I spent so much time, dedicated my whole life to Selangor. When something is not right, I feel bad.

Are there any other misreports or mistaken claims that you would like to clarify?
If possible, I want to be given a chance to explain. It disappoints me sometimes. It is as if I did nothing good for Selangor. The impression of me is that I am an evil person, but Selangor was moving along quite well (when I was MB).

We should judge the situation calmly, not through hatred or because we are angry for not getting something. It's unfair. The public should assess someone based on his or her achievements.

Alhamdulillah, many have now come up to me to say 'thank you'. Malaysiakini, 15/9/2010, Q&A: 'I deserve more perks than I got'