KUALA LUMPUR – Pasir Salak MP Datuk Seri Tajuddin Abdul Rahman’s appalling handling of the recent LRT accident proves exactly why politicians should not be appointed to head government-linked companies (GLCs), according to two analysts.
They said elected representatives who are given chairmanship of these companies generally lack the expertise and experience in the related field, or the ability to handle crises.
Speaking to The Vibes, Institute for Democracy and Economic Affairs (Ideas) chief executive Tricia Yeoh said Prasarana Malaysia Bhd would have better managed the fallout from Monday’s crash had it been led by a more qualified individual.
“If the appointment process of chairman and board of directors had been done properly and based on merit, this would not have happened. People with merit would have been able to handle any sort of crisis.
“This (episode) is the perfect example why we should not have political appointees in GLCs, especially in the position of chairman.”
Tajuddin had come under heavy criticism over the manner in which he handled a press conference a day after the crash.
Among others, people called him out for his lackadaisical and unempathetic responses to media queries, as well as his decision not to hold a press briefing immediately after the incident.
On Wednesday, the Finance Ministry announced the termination of Tajuddin’s services as non-executive chairman of Prasarana.
Yeoh said apart from lacking expertise, the appointment of politicians in GLCs also raises the issue of conflict of interest, often at the expense of the firms.
“In a situation where one’s interest is conflicted between his political stand and the company he is serving, whose interest do you think comes first? In many instances, it’s always the political parties’ interest.
“That, for me, is the main issue at hand. And that is why we are calling for the appointments of directors of GLCs and other statutory bodies to be regulated,” she said.
Ideas, in partnership with Bersih 2.0, had recently released its “Reforming the Appointment Process of Directors in GLICs, GLCs and Commercially Related Statutory Bodies” report, which recommends the enaction of a GLC act.
Asked if MPs with experience in the related field can be considered for GLC positions, Yeoh said while this may seem better, it is still best not to include politicians.
Separation of politics and business
Asli Centre for Public Policy chairman Tan Sri Ramon Navaratnam said Tajuddin’s disastrous handling of the train crash shows why changes are needed in the current appointment system of GLC heads.
Having unqualified individuals lead the companies puts GLCs on the back foot, he said, adding that this explains why Malaysia’s economy continues to play catch up with many others in the region.
“The country’s leadership is just looking after its own interests, and that of their friends and cronies, by appointing certain elected representatives to GLCs. But as a result, the people will suffer from bad leadership.”
He said politicians are also obligated to follow the decisions of their party’s leadership and whip, which are often disadvantageous to GLCs.
“The safest way to observe good governance is to take out politics from good business leadership. You can’t have both, I’m afraid. Politicians will always have political motivations behind them.”
On Tajuddin’s removal as chairman, Ramon said it is fair and justified considering his arrogance, and lack of compassion and empathy for the crash victims.
He said the Umno leader’s attitude not only went against religious norms and values, but also social rules on decent behaviour, and urged the public to condemn any leader who does not uphold these values.
However, Ramon said the one positive thing that can be taken away from Tajuddin’s sacking is the decisive and swift manner in which the government acted in removing the Pasir Salak MP after his faux pas.
“This government has been traditionally slow in its actions. Let’s hope this is a signal of change for a new approach to be taken by the administration.” – The Vibes, May 28, 2021
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