Patriot takes special and important note of Auditor General Wan Suraya Wan Mohd Radzi’s recent assurance that almost 2,000 government-linked entities would be subjected to regular audits by her department.
Patriot regards this intention as most encouraging, laudable and refreshing.
Such audit exercises will promote greater accountability and transparency within these entities and hopefully contribute to a better focus on their allotted roles and overall good governance.
This move resonates well with the current government’s determination to arrest the systemic corruption in the country. It also provides better control and monitoring measures over these entities’ activities and business engagements.
To enable the National Audit Department to carry out its functions efficiently and effectively, the department must be provided with additional personnel and material resources.
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Government-linked entities are involved in a wide and complex spectrum of activities and have heavy responsibilities.
Beyond having a successful leadership career within a bureaucracy, leaders of these firms require a sophisticated set of skills to manage and run the entities under their discharge efficiently.
It is observed that the Ministry of Finance and Khazanah Negara are mainly responsible for the supervision and monitoring of these entities.
It is no secret that for some of these entities to function well, some degree of independence, a keen sense of enterprise and risk-taking may be essential.
Patriot notes with concern that run-of-the-mill senior bureaucrats or retired senior government officials, including distinguished or discarded politicians, seem to be logical choices for the boards of directors that run these companies.
1MDB, Perwaja Steel and Port Klang Free Zone (PKFZ) are perhaps egregious examples. Other big concerns like Malaysia Airlines, Sapura, Prasarana, the Tabung Haji companies and Felda Global Ventures have also been in the news for the wrong reasons.
These companies have not performed as remarkably as expected.
As talent and integrity records are vital, it is about time the relevant authority considers including some directors with proven enterprise mettle and a sound knowledge of business environments and trends.
Boards ought to reflect specialised expertise, leadership ability, diversity and some gender and regional balance.
Government-linked companies must not lose sight of their fundamental fiduciary duties; environmental, social and governance goals; and corporate social responsibility functions. They must also not lose sight of encouraging Malaysian small and medium-sized enterprises (SMEs), which are also pivotal to the business environment.
Patriot observes that government-linked companies which hold monopolies may be at risk of stuffing out creative entrepreneurial talent in certain areas. If such shortcomings exist, they must be arrested affirmatively.
It’s time for our country to move past scandals, mismanagement and missed targets identified in previous audits of these government-linked companies.
These government-linked companies must not succumb to too much politeness, protocol and pressure from political leaders. They must have the space to operate beyond the wallpaper on their boards.
Appointments to the leadership of these entities are not championship trophies or ceremonial or consolation prizes to be offered as rewards for retiring civil servants from a largely ‘kiss-up, kick-down’ civil service system.
The government must place great store on ensuring that these entities are run by well- qualified technocrats, capable managers and qualified staff.
The fact is the country has had in the past exceptional and well-respected leaders heading government-linked companies.
We must remember the sterling service, sound character and highest integrity displayed by Raja Tun Mohar Raja Badiozaman, Ismail Mohd Ali, Abdullah Mohd Salleh, Raja Tun Muhammad Alias, Azizan Zainul Abidin and Rastam Hadi, who despite their civil service immersion did not fail to deliver on their challenging corporate agenda.
Patriot lauds Auditor General Wan Suraya’s timely assurance and will to monitor the government’s indulgence in this direction.
Retired Lt Col Dato’ Zarazilah Mohd Ali is president of the Malaysian National Patriots Association (Patriot).
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