Enact GLC Act, prohibit MPs from being appointed as directors, chairs: Bersih

KUALA LUMPUR – The Coalition for Clean and Fair Elections (Bersih) has stressed its objection to the appointment of politically affiliated ministers to high positions in government-linked companies (GLCs).

It today called for the enactment of a GLC Act to prohibit elected representatives from being appointed to directorships and chairmanships of such companies. 

In particular, it slammed the recent decision to appoint Bersatu’s Alor Gajah MP Datuk Seri Mohd Redzuan Md Yusof as the chairman of Boustead Holdings Bhd. 

The company is largely owned by the Armed Forces Fund Board, which is under the Defence Ministry.

Despite Redzuan’s experience in both public and private companies, Bersih said, this action could raise the possibility of systemic abuse, affecting Malaysia’s development and the economic activity of GLCs.

It said it could even lead to large-scale financial abuse, as shown by what happened to national sovereign wealth fund 1Malaysia Development Bhd.

“His political affiliation and role as a lawmaker makes his appointment circumspect and it can be seen as yet another case of the government soliciting support from MPs through unethical means,” Bersih said in a statement today. 

It said that ministers would be distracted from their original duties as lawmakers once they have been given directorships and chairmanships. 

In addition, it said, it is not right for MPs to hold positions in GLCs as they should be the ones keeping the government and GLCs’ performances in check. 

“Moreover, this action also takes away opportunities from other more qualified professionals to be appointed to lead the companies,” it said.

To ensure better transparency, Bersih urged, the GLC Act should also lay out legally binding appointment criteria and set out recruitment and reporting mechanisms. 

Furthermore, there should also be a parliamentary select committee to monitor the process of appointments in GLCs and statutory bodies, and ensure the appointments are based on merit. 

“Having qualified professionals appointed to lead these state-owned enterprises will also contribute to better corporate governance, leading to better economic performance. 

“The current toxic mix of politics and business encourages cronyism, corruption, patronage, and abuse of power. 

“This ailment has plagued Malaysia for decades and to progress, we need to put an end to such abuse of power,” Bersih added.

Redzuan was appointed as chairman yesterday. Boustead reasoned that the move would elevate its agenda for reinvention and environmental, social and corporate governance. – The Vibes, January 4, 2021