KUALA LUMPUR – Penang Chief Minister Chow Kon Yeow yesterday defended a state water corporation’s non-executive director after the latter came under fire for receiving a salary deemed “excessive”.
Datuk P. Kuvenaraju, who was appointed as Penang Water Supply Corporation (PBAPP) non-executive director on September 3 last year, had been criticised by opposition assemblymen for taking home RM46,700 a month in “special functions” allowances, RM1,000 in executive fees and RM300 in meeting allowances.
Chow defended the pay package, saying Kuvenaraju’s appointment and remuneration had been approved by the boards of PBAPP and its controlling shareholder PBA Holdings Bhd.
He added that Kuvenaraju’s appointment was until September 3 next year and has been tasked to perform a list of duties, including laying down a succession plan for PBAPP’s chief executive officer, and head of development and planning. PBAPP’s current CEO is Jaseni Maidinsa.
Chow’s reply still raises questions. For starters, the approval of Kuvenaraju’s pay package comes after PBAPP registered a net loss of RM102.43 million for the financial year ended December 31, 2018.
Secondly, despite the “special functions”, Kuvenaraju’s salary is excessive going by past trends. Sans meeting allowances and executive fees, Kuvenaraju will roughly earn a gross annual salary of RM560,400, two times higher than PBAPP directors’ remuneration and benefits for the financial year ended 2018 at RM281,532.
His salary is also a 10-fold increase to Chow’s RM54,541 annual salary as PBA chairman approved last year.
Thirdly, the basis of the approval is not mentioned in Chow’s written reply. Kuvenaraju is an old hand in the industry and a familiar face as he was non-executive director of PBA.
But nothing is mentioned about the board’s decisions. It hints to weak corporate governance.
Other members on the board include Penang Deputy Chief Minister II P. Ramasamy and Tg Bungah assemblyman Zairil Khir Johari.
To be sure, some of the grouses raised by opposition assemblymen such as Kuvenaraju’s salary being a financial burden to state coffers are red herrings.
Despite netting a loss in 2018, PBAPP was profitable the year before while parent company PBA had been profitable even in its recent quarterly filing. Both companies are in a net cash position and are generally well run.
Still, what exactly is Kuvenaraju entrusted with that requires PBAPP to buck the prudent trend and splurge on a non-executive director? – The Vibes, October 16, 2020
