THE accusations heaped against Prasarana Malaysia Bhd non-executive chairman Datuk Seri Tajuddin Abdul Rahman this past week have brought the national company that owns the assets of and operates urban transportation on the radar.
With accumulated losses of over RM42 billion, Prasarana has been struggling to keep its head above water.
It does not help that its management has also come under scrutiny from successive governments following its losses and operations where the Malaysian Anti-Corruption Commission (MACC) has, on several occasions, visited its office in Jalan Bangsar following reports and complaints of corruption, conflicts of interest, and inflating the cost of public projects.
While whistle-blowers and third-party watchdogs such as auditors have been relied upon to scrutinise the operations and fiscal management of organisations like Prasarana, it must be remembered that a board of directors is in place to ensure governance and sound management – that no CEO or chairman (executive or non-executive) runs the company like his grandfather’s company.
In the case of Prasarana, Tajuddin’s appointment on May 11 last year had already raised eyebrows, as his wife, daughter and son-in-law were shareholders and directors of companies involved in a project to build a transport-oriented development in Dang Wangi.
Though the company was terminated before his appointment, Tajuddin had sought to sack contractors involved in the Dang Wangi light rail transit (LRT) station construction of that development so that Prasarana could do it itself.
The termination of that agreement would see Prasarana paying RM80 million in compensation.
That Prasarana was expected to re-tender and award it to a company associated with Tajuddin remains speculative and a mere allegation.
However, the suspension of Prasarana’s president and group chief executive Muhammad Nizam Alias on December 9 last year raised more queries over the running of the company under Tajuddin’s chairmanship. Non-executive chairmanship.
In his two-hour press conference on January 5, where he attempted to stave off allegations of abuse of power and conflicts of interest, Tajuddin confirmed Nizam’s suspension for “misconduct and insubordination”.
However, it has come to attention that MACC, which raided Prasarana’s office the same day Tajuddin was giving his press conference, is exploring the possibility that Nizam was suspended because of his refusal to follow Tajuddin’s instructions regarding the awarding of a contract.
That Tajuddin attempted to throw MRCB-George Kent Sdn Bhd (MRCBGK) – the turnkey contractor for the LRT3 project – under the train for purported non-payment to project contractors was also put paid when MRCBGK stood its ground and provided evidence that it was Prasarana that had been the poor paymaster, and the turnkey contractor had to fork out RM200 million to keep the project running.
While Tajuddin must be allowed to defend himself, the events at Prasarana do shine a spotlight on the board of directors who are supposed to provide checks and balances to the company. Did the following gentlemen, Tan Sri Mohd Khairul Adib Abd Rahman; Datuk Dr Yacob Mustafa; Dr Sivabalasingam Veerasingam; Ma Sivanesan Marimuthu; Azhar Noraini; Datuk Mohd Ramzan Ibrahim; Dr Tan Yean Chin; Datuk Mohd Farid Adnan; Datuk Mohd Zarif Hashim; and, Datuk Syed Mohamed Syed Ibrahim perform their fiduciary duties in ensuring that the company does not fall into disrepute?
That special-interest elements are kept out of the boardroom?
There have been enough examples in this country where boards of directors failed in their fiduciary duties to ensure that the interests of shareholders, stakeholders, and in some cases, taxpayers are protected.
The Port Klang Authority in the Port Klang Free Zone fiasco, and the 1Malaysia Development Bhd episode come to mind.
In the case of Prasarana, perhaps, it is not easy to resist or counter a strong personality like Tajuddin, who is Pasir Salak MP and Umno’s election director.
Which is why, without casting aspersions of impropriety on the present board, it is timely that the Finance Ministry (MoF) has decided to revamp the said board.
According to sources, three new entries are expected to ensure a better check and balance on an otherwise seemingly impotent board.
It is understood that discussions are under way to appoint former MACC chief Tan Sri Abu Kassim Mohamed, his former deputy commissioner, Datuk Seri Mustafar Ali, and Transport Ministry chief secretary Datuk Isham Ishak to Prasarana’s board.
Abu Kassim is the newly retired director-general of the National Centre for Governance, Integrity and Anti-Corruption, while Mustafar, a former immigration director-general, is currently CEO of the National Anti-Financial Crime Centre.
Whether these gentlemen accept the nomination is another thing, but that MoF finds the need for a serious revamp demonstrates, at least cosmetically, that this is still a government that listens to public opinion.
Meanwhile, MACC must be allowed to carry out its investigations without fear or favour, where its probe into Prasarana and Tajuddin’s leadership is based purely on law, fact and public interest – and not motivated by present political undercurrents. – The Vibes, January 8, 2021
Terence Fernandez is managing editor at The Vibes and editor-in-chief of Petra News
