GLC Reform: Getting it Right

1. GLC appointments have been a central issue during and after GE14 thanks to the Najib Administration. The SOCSO chairman appointment made this issue a public interest once again.

But are we focusing on the right thing?

2. Catering to public outcries over 1MDB and other misuse of public enterprises, PH promised that GLC appointments "will be based on merit and professionalism, not based on politics".

This is of course a welcomed move. But it's not the root of the evil.

3. Tho many say its just semantics, there's a clear line between GLC & Statutory Bodies.

GLCs are officially defined as subsidiaries of the 7 GLICs. So FELDA, SOCSO, MARA are SBs, are not GLCs.

However we'll treat SBs as GLCs here for argument's sake.

4. Appointing "professionals" (however it's defined) alone does not guarantee integrity.

After all, many enablers of Najib Admin's actions were "professionals". All of you remember names like Jho Low, Shahrol Halmi, Arul Kanda, Ismee.

5. This seen at state level too. Perak under Zambry had "professionals" in GLCs like ex-PKNP CEO Aminudin Desa. He was a director of Animation Theme Park, the operator of the failed RM500 mil MAPS Theme Park.

He is also facing a RM455K bribery charge.

6. The issue is not "professionals" or politicians. The issue is how do you prevent abuse REGARDLESS of "professional" or politician being appointed?

This is what PH should have tackled, but they didn't. If they did, GLC system would b protected no matter who is government.

7. Because to argue now that appointment of politicians cause corruption is being simplistic, hypcrotical & well, lazy.

Ness(1967) said that MARA and FELDA thrived bcoz Tun Razak personally oversees both agencies, unlike "professionals" before him.

8. JCORP's ex-CEO Ali Hashim wrote(1996) that JCORP owed much of its early success to strong foundations laid down by ex-Johor MB Othman Saat.

Penang's transformation to an E&E hub owed much to ex-CM Lim Chong Eu's proactive role as chairman of PDC (Chin Tong, NST, Nov 2019).

9. Point here is we need institutional reform in terms of transparency & accountability, not simplistic and flawed anti-politician rhetorics. That is shift blame away from urself.

I agree with Sivarasa that there is social value in appointing politicans, when based on merit.

10. Vitally, GLCs have to serve econ & social objective. Politician can help be reactive to public needs.

This explains last time Anthony Loke appointed director of Penang Global Tourism Sdn Bhd, Yeo Bee Yin in Pengurusan Air Selangor Sdn Bhd, Tony Pua in PICEB Sdn Bhd.

11. The same way you are concerned with appointment of politician, you should be concerned too with appointment of "professionals" in GLCs

"Professionals" surely is capable, but they may not prioritise public interest. They may strip off GLC assets so balance sheet looks sexy

12. What PH should have done when in power is first ensuring transparency. All GLCs must disclose publicly director wages, procurements, P&L, etc. Updated reports must be EASILY available (website?) as in Korea.

Then only can an objective evaluation be made without bias.

13. Accountablity possible only after transparency. Empower parliament (committee) to assess GLCs. Not only in terms of financial performance, but social deliverance.

Draw clear penalties in any case of misconduct. No matter politician or "professional" as GLC head.

14. That is the reform that we needed, that we were promised, that we should have gotten.

But internal bickering proved more worthwhile perhaps. Now our GLCs are again at stake, and the same cries are recycled again.

End.