Tuesday, May 15, 2018

Preventing what happened in 1MDB happening to other GLCs - New Laws and Policies?

Election won - New Opposition Government > Real changes needed - not just new leaders following old UMNO-BN policies...
1MDB, MAS, PROTON...and GLCs - How to make sure that similar 'hanky panky' does not repeat itself in other government-owned and GLCs both of Federal Government and State Government? That is very important - and not merely focusing on possible wrongdoing of individuals in UMNO-BN government and 'friends' ...or recovering loss money and wealth of Malaysians.
Mahathir and the new Pakatan Harapan government must really ACT not just to remedy mistakes including recovering 'money leaked out/lost' of the past ... We need to immediately put in place LAWS and policies to prevent similar things happening to other government owned companies and GLCs. Some suggestion as to what must be done now...not only at Federal level but also State level..
FIRST - What are the names of all government owned companies(there seem to be a lot - not just the parent companies but also subsidiaries) and also GLCs. In case of GLCs, it is important for Malaysians to now know what percentage does the Malaysian/State government owns directly (i.e. through the MOF, Khazanah) and what percentage is owned by government agencies like EPF, KWAP, LUTH. There should be a public disclosure of this basic information, maybe through the government website - maybe the Ministry of Finance website.

SECOND - Malaysians need to know the profits made by these government owned companies and GLCs that has flowed back to the Malaysian government(on behalf of all Malaysians). Note for specialized agencies like EPF - profits will belong to ONLY the worker EPF members, and like LUTH just to contributors to the Tabung Haji.

THIRD - Malaysians need to know the names of the Board of Directors and also the names of the substantial shareholders. We also wonder whether any UMNO-BN politician has shares in GLCs personally or through their family members/friends. How many of these companies that were previously owned by government is no more because during Najib and UMNO-BN rule, it has been sold of to others ...like DRB HICOM, Proton...maybe even Pos Malaysia???



1 - All government-own companies and GLCs(maybe those that the government and/or its agencies own 20% or more) should be subjected to full scrutiny by Parliament(or State Legislative Assembly). The laws may need to be also amended OR the power given to the Auditor General, to ensure that the Auditor General shall audit all these companies, and the report must be submitted to the Parliament(State Legislative Assembly), and be available to the public(No OSA!). Now, according to the law, Auditor General audits and reports on the accounts of the government - does not clearly include government owned companies or GLCs, but it CAN be extended to include these companies by order made by the King(or Rulers when it comes to States)...

106  Powers and duties of Auditor General.

(1) The accounts of the Federation and of the States shall be audited and reported on by the Auditor General.
(2) The Auditor General shall perform such other duties and exercise such powers in relation to the accounts of the Federation and of the States and to the accounts of other public authorities and of those bodies which are specified by order made by the Yang di- Pertuan Agong, as may be provided by federal law.


2 - There must be Parliamentary Oversight Committees set up who will continue monitor these government owned companies and GLCs, which shall also have the power to inquire(including conduct public inquiry) and continuously monitor these companies. This Parliamentary Oversight Commitee shall also have the power to receive complaints from Malaysian, and investigate. We are fed up when we only find out after 'nasi sudah jadi bubur'{milk already spilled) - too late, after the Company has failed and Malaysian people need to 'pour in' more money - MAS - we still do not know who made the 'mistakes'..who was responsible?? - Remember, about 6,000 Malaysians lost jobs there.
3 - DIRECTORS - Well, for government owned and GLCs, wisely the government and/or related agencies need to name and ensure appointment of Directors representing the government/agency concerned - and they should not receive any payment/benefits from this companies directly, for after all they are public servants, who get salary/allowances from the government, and they are there as representatives of the government(representing all Malaysians). If they receive also payments from the said company, there is a problem with loyalty (i.e. to the company or to the government). Under the UMNO-BN government, these 'public servants' may have been receiving salary/benefits from the company other than from the government. So did they protect the best interest of the government(Malaysians) or did they serve the company and their own pockets.
4 - DIRECTORS - Certainly Ministers, should NEVER be a member of the Board of Directors, or any other cimpany structure like 'Advisory Board'. The problem with 1MDB was that Najib was the Chairman of the Board of Advisors - and also the Minister in charge directly, being the Minister of Finance, and also the Prime Ministers. So, whose interest would he be serving - the interest of 1MDB or the interest of the government(Malaysians). Being a Director or in some other board of governance of a company can compromise their 'independence' as a member of the Executive in government.
5 - DIRECTORS - likewise the position of Directors should never be a 'GIFT' that the Prime Minister/Chief Minister can bestow to a politician from his her party(be it an MP and/or ADUN) - is it a 'pay-off' for loyalty and support to a particular MP/ADUN/Politician and/or their political party(or faction? The alternative is that the appointment is really for the purpose of a 'check and balance' to satisfy that there is no 'hanky-panky' - and, if so, then this appointment must be for someone with the required capacity or qualification or experience? If it be an ADUN and/or MP appointed, then naturally, this MP or ADUN should not be receiving any salary/allowance from the said company - and if they are entitled to such salary/allowances as Directors, it must be forthwith given back to government - for after all ADUNs/MPs already are paid salary and allowance by us, Malaysians,(vide the government) and it is more than sufficient income. This problem may now be happening during the UMNO-BN rule, but may also be happening in Pakatan or Opposition ruled States.
6 - SALARIES and allowances for Directors.CEO and Employees. Profits is INCOME less EXPENDITURE, and these salaries and allowances are expenses. For government-owned companies, there must be a stipulated salary and/or allowances scale that is fixed - For good work and high profits, it should flow as "Bonuses". Hence, if make a profit, then maybe about 10-20% of the said profits will be paid to Directors, CEOs and workers > this will motivate and encourage them to work hard for the benefit of Malaysians(the government of Malaysia). If the company suffers losses, then naturally no bonus. Now, many of the CEOs, Directors and even staff are sometimes paid exorbitant salaries - sometimes even more than the salary of a Prime Minister. This is absurd. The policy should be higher bonuses for more profits...Why should non-performing Directors, CEO and staff be paid high wages/income? Maybe, the same scale used for civil servants should be a guideline.
7 -  Corporate Social Responsibility[CSR] - the UMNO-BN allowed these companies to spend money but remember these are the Malaysian people's(government) money - so no need for such companies to spend for CSR - just return the monies earned(or profits), and the government would spend that money for the people. When money is expended by GLCs and/or government owned companies, the Directors generally decide - and how much of these money has been spend possibly to benefit certain individuals, politicians or even political parties? 1MDB, with all its financial problems, spend money to send certain people for Haj...Why? Government decides and spend its money for the people according to its budget and policy, as approved by Parliament. For private companies, not owned in part or whole, they can decide how to spend monies on the guise of CSR - we really have no say, just these companies' shareholders/owners. Remember, many a company spend for 'charity', etc...primarily to reduce their tax obligations....and for 'advertising'. Taxes are a source of income for government. Government need to evaluate what expenditure by companies under the guise of 'CSR' should really be tax exempted.

See earlier related posts

No comments: