When the government starts forming 'Private Companies' - not Statutory Body/Entity like Perbadanan Kemajuan Negeri Selangor (PKNS)(enacted by virtue of the Enakmen Perbadanan Kemajuan Negeri Selangor (1964), the question we must ask is WHY?
The government, its ministries/departments/agencies, and statutory bodies are all monitored by the Legislative(be it Parliament or State Legislative Bodies) - so there is a need for them to be transparent and accountable. The Auditor General's office also will as of right do a full audit, and give us all a report - questioning also abuses and mismanagement.
But, if it was a just 'private company' , then things can be 'hidden' from the people - even from the Legislature.
In Malaysia, now they have even have something that the BN government calls 'Private Funding Initiative'(PFI) - and here too, they do not even provide details about income and expenses even when asked by Members of Parliament(MP) in Parliament
For example, the Malaysian government's 6P program, when MP Teresa Kok asked how much was spent and how much was made - this question was not answered...the reason given was that this was a PFI - hence no need to give accounts to Parliament. Hence the total avoidance of transparency and accountability...
In Malaysia, now they have even have something that the BN government calls 'Private Funding Initiative'(PFI) - and here too, they do not even provide details about income and expenses even when asked by Members of Parliament(MP) in Parliament
For example, the Malaysian government's 6P program, when MP Teresa Kok asked how much was spent and how much was made - this question was not answered...the reason given was that this was a PFI - hence no need to give accounts to Parliament. Hence the total avoidance of transparency and accountability...
PEMBERITAHUAN PERTANYAAN DEWAN RAKYAT
PERTANYAAN : LISAN
DARIPADA : YB PUAN TERESA KOK SUH SIM (SEPUTEH)
TARIKH : 3 APRIL 2012
SOALAN :
YB. PUAN TERESA KOK SUH SIM (SEPUTEH) minta MENTERI DALAM NEGERI menyatakan jumlah perbelanjaaan dan jumlah pendapatan yang terlibat dalam projek 6P pada tahun 2011. Apakah langkah yang akan diambil oleh Kementerian untuk mengatasi masalah kekurangan pekerja dalam industri perkhidmatan dan pembuatan di Malaysia.
JAWAPAN :
Terima kasih saya ucapan kepada Ahli Yang Berhormat Seputeh yang mengemukakan pertanyaan.
Untuk makluman Ahli Yang Berhormat, Program 6P dilaksanakan dengan tujuan untuk mewujudkan satu pangkalan data dan rekod biometric warga asing di Negara ini.
Program 6P dilaksanakan melalui kaedah Private Funding Initiative (PFI), oleh itu Kerajaan tidak menanggung kos operasi badi perlaksanaan program tersebut.
Di antara impak positif perlaksanaan Program 6P adalah seperti berikut:
Program 6P adalah sebahagian daripada usaha penting dalan agenda Kerajaan untuk memantapkan pengurusan warga asing di Negara ini, sekali gus membantu menangani jenayah rentas sempadan khususnya jenayah pemerdagangan orang dan penyeludupan manusia.
- berupaya mengumpul data berhubung jumlah PATI yang berada di dalam Negara;
- membantu memantapkan pemantauan dan penguatkuasaan terhadap wangsa asing melalui pengambilan data biometric, sekali gus meningkatkan kawalan keselamatan negara;
- membantu menangani isu pemalsuan identity dan dokumen perjalanan melalui pendaftran data biometric cap jari yang tidak boleh dipalsukan;
- memenuhi segera keperluan pekerja asing sector-sektor ekonomi melalui process pemutihan PATI tanpa perlu membawa masuk pekerja asing baru; dan
- menangani isu ketirisan dalam pengutipan levi pekerja asing dan sekali gus meningkatkan hasil pendapatan Negara.
Tuan Yang Di-pertua,
Kerajaan telah mengambil beberapa langkah untuk mengatasi masalah kekurangan pekerja dalam industry perkhidmatan dan pembuatan di Malaysia. Selaras dengan Program 6P ini juga Kerajaan telah menangguhkan pengambilan pekerja asing dari luar. Walaubagaimanapun, pihak Kerajaan memberi peluang kepada majikan dan industry untuk mendapatkan pekerja asing melalui Process Pendaftaran dan Pemutihan yang sedang dilaksanakan.
Bagi tujuan ini, pihak Kerajaan telah melonggarkan beberapa syarat dan peraturan di bawah Program 6P ang melibatkan perkara-perkara berikut:
1) Membuka semula subsektor-subsektor di bawah sektor perkhidmatan yang dibekukan;
2) Membenarkan sektor di luar dasar sedia ada mendapatkan pekerja asing melalui program pemutihan yang dijalankan; dan
3) Melonggarkan syarat-syarat dan peraturan yang ditetapkan oleh Agensi Kawal Sedia untuk kelulusan pengambilan pekerja asing melalui proses Pemutihan yang dijalankan.
Langkah-langkah yang diambil ini adalah bagi memastikan majikan tidak menghadapi masalah kekurangan tenaga pekerja asing dan seterusnya manjamin kelancaran operasi di sector masing-masing.
Source: Teresa Kok's Blog
But, now even the Selangor governed by DAP-PAS-PKR, under Menteri Besar Azmin Ali is also seemingly moving along the same lines...one example may be the Darul Ehsan Investment Group (DEIG).
In a democracy, it is essential that the people will be able to oversee how all their monies are being used. There must not just be transparency and accountability - but there must also be continuous monitoring. It makes no sense trying to recover 'milk already spilled' - best to prevent it from the beginning.
Legislative oversight committees are essential to be able to continuously monitor such government-owned or government-linked entities.
When it is a statutory body like PKNS - the law also sets the objectives, what can be done and what cannot be done...
Why is there a need for DEIG when we already have PKNS?
Even with regard with PKNS and its many owned subsidiary, there is still a lack of transparency and accountability; but at least there is still an explicit need for it to be accountable to the Legislature and is subject to a specific law.
But really, how much is paid to PKNS and PKNS's subsidiary Directors, CEOs and higher management? How much are paid to its staff - remember we had a scandal in PKNS about the hiring of 'very highly paid' short contract staff/employees - something that we never even got final answers...all seem to have been swept under the carpet?
What about the contracts? Overpriced? Given to cronies? Is PKNS giving 'donations' directly or indirectly to certain politicians or political parties?
But really, how much is paid to PKNS and PKNS's subsidiary Directors, CEOs and higher management? How much are paid to its staff - remember we had a scandal in PKNS about the hiring of 'very highly paid' short contract staff/employees - something that we never even got final answers...all seem to have been swept under the carpet?
What about the contracts? Overpriced? Given to cronies? Is PKNS giving 'donations' directly or indirectly to certain politicians or political parties?
But, with a private entity like 1MDB or DEIG or MAS, things can be even worse. How can this requirement for transparency and accountability be satisfied here? Yes, the Menteri Besar may be now sincere...may even ask the Auditor General to audit it now - but really, is this enough? I think not..
Government has a 'social responsibility' to the people - corporation do not. Businesses are in the business of making money/profits - and with regard to government or State owned enterprises, all these really belongs and is for the people. As such, there must be transparency and accountability...
But still the government - even the current Opposition Selangor State government keeps 'secrets' and will not disclose everything to the people. Check and balance is still lacking - let alone transparency. What more the dangers of these 'private companies'... Is there really any difference between BN governments and Opposition governments in this regard? Maybe, the Opposition can tell us what this difference is....People no more are happy with 'trust us...we will do what is right' - look at 1MDB, MAS, ...
Remember, one of the nature of the company is that unlike a sole proprietorship or a partnership... it's liabilities stops at the point of what the company owns. CEOs, Directors and Shareholders are protected - if a company cannot settle its debt, we cannot go after the owners; this phenomena makes it easy for owners and Directors to be 'less worried about personal consequences' - hence the increasing the possibility of 'abuse'; like payment of very high wages to 'friends', even high Directors' allowances. etc.
Take MAS, for instance, MAS lost billions - but really the company fails, but the CEOs and Directors are not personally affected financially - they would have continued earning the same salary and allowances. It is shocking to know that some companies pay their Director millions per year in the form of allowances - no wonder many want to be Directors...
In fact, in my opinion, when the Directors are public servants, MPs/ADUNs/Senators... they should not be paid any additional Director's allowances - for after all, they are salaried public servants and all these are part of their job.
Take MAS, for instance, MAS lost billions - but really the company fails, but the CEOs and Directors are not personally affected financially - they would have continued earning the same salary and allowances. It is shocking to know that some companies pay their Director millions per year in the form of allowances - no wonder many want to be Directors...
In fact, in my opinion, when the Directors are public servants, MPs/ADUNs/Senators... they should not be paid any additional Director's allowances - for after all, they are salaried public servants and all these are part of their job.
Najib can say that government-owned investment companies will be managed correctly - Azmin can say the same thing; but Malaysians no more trust political leaders, and really would prefer much more oversight, monitoring, transparency and accountability...by the people.
August 19, 2015 MYT 9:33:25 PM
Azmin: Newly formed investment group will be managed appropriately
SHAH ALAM: Selangor Mentri Besar Azmin Ali (pic)
reassured the state assembly on Wednesday that the newly formed Darul
Ehsan Investment Group (DEIG) would be managed accordingly and
appropriately.
“We will continue to subscribe to the highest form of governance in Selangor,’’ Azmin promised in response to debates on DEIG.
Many of the state’s elected representatives voiced their concerns that DEIG was registered under the Company’s Act and was going to embark on business ventures.
They opined that the state must not be involved in business along the same lines as a regular business entities.
DEIG was formed in May to take over the state’s 12 companies, which were under Mentri Besar Incorporated (MBI).
Azmin said he agreed with the opinion that the state government should not be involved in business but added there were sectors and areas which it (state government) should look into to protect the interests of the people.
“If everything is given to the private sector, there may be a situation where they will only focus on profits and do nothing in regard to corporate social responsibility,’’ he said.
He said from Selangor’s experience when state land was given to a private company for development, the company did not build low-cost homes at all,’’ he said.
“It was the same with the water industry,’’ said Azmin adding that water tariffs had gone up when it was given to a private concessionaires.
He said he would present a detailed report on DEIG at the next state assembly session in November.
Earlier in the house, Yeo Bee Yin (DAP-Damansara Utama) said one of her concerns was that DEIG did not have any independent non-executive board members.
She said DEIG, which was incorporated under the Company’s Act, was not blocked by any enactment or legislation from obtaining loans.
“I am concerned that DEIG may use its assets to get loans to develop big projects.
“We are not questioning the mentri besar’s integrity but concerned about the future. I hope the mentri besar will not be offended,’’ said Yeo. - Star, 19/8/2015
“We will continue to subscribe to the highest form of governance in Selangor,’’ Azmin promised in response to debates on DEIG.
Many of the state’s elected representatives voiced their concerns that DEIG was registered under the Company’s Act and was going to embark on business ventures.
They opined that the state must not be involved in business along the same lines as a regular business entities.
Azmin said he agreed with the opinion that the state government should not be involved in business but added there were sectors and areas which it (state government) should look into to protect the interests of the people.
“If everything is given to the private sector, there may be a situation where they will only focus on profits and do nothing in regard to corporate social responsibility,’’ he said.
He said from Selangor’s experience when state land was given to a private company for development, the company did not build low-cost homes at all,’’ he said.
“It was the same with the water industry,’’ said Azmin adding that water tariffs had gone up when it was given to a private concessionaires.
He said he would present a detailed report on DEIG at the next state assembly session in November.
Earlier in the house, Yeo Bee Yin (DAP-Damansara Utama) said one of her concerns was that DEIG did not have any independent non-executive board members.
She said DEIG, which was incorporated under the Company’s Act, was not blocked by any enactment or legislation from obtaining loans.
“I am concerned that DEIG may use its assets to get loans to develop big projects.
“We are not questioning the mentri besar’s integrity but concerned about the future. I hope the mentri besar will not be offended,’’ said Yeo. - Star, 19/8/2015
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