Ensure good corporate practice in GLCs, PM urged
Published: Mar 8, 2012 9:14 AM | Updated: Mar 8, 2012 3:05 PM
Selangor MB Khalid Ibrahim today ticked off Prime Minister Najib Abdul Razak for continuing to allow bad corporate practices in government-linked companies despite him asking some 300 of them to help the federal government develop the state recently.
Selangor MB Khalid Ibrahim today ticked off Prime Minister Najib Abdul Razak for continuing to allow bad corporate practices in government-linked companies despite him asking some 300 of them to help the federal government develop the state recently.
He described Najib's call as meaningless if he continues to encourage corporate practices that impede genuine development, stunt competition, and give rise to numerous bad practices.
"Federal policies as well as those enacted in Selangor prior to 2008 are rife with elements of corruption, preferential treatment, and spoon feeding of interested parties," Khalid (right) said in a statement today.
He said the public is beginning to realise that privatisation has served to privatise only profits, while socialising losses.
"The way the federal government has implemented privatisation has clearly and consistently used taxpayer money to underwrite failure, without creating any genuine growth," said the former chief executive officer of Guthrie Bhd.
In stark contrast, he said, the Selangor government is striving to ensure that its GLCs are transparent and accountable in any business they conduct and sharpen their competitive edge.
"GLCs must be developed to become more competitive and successful in their own right, without having to rely excessively on government handouts and without encouraging the rise of the rentier class that has become the largest cancer threatening the nation's financial health," he said.
He urged Najib to change the culture of all GLCs and insist that they diligently adhere to good corporate practices, failing to do so will only worsen the leakages "that have bled the country for decades."
He said the Selangor state government is committed to reforming the privatisation process to stop this disproportionate profit making on the part of cronies, and restructure it in such way that the rakyat enjoy the most benefits from the exercise.
"If the federal government and Najib are sincere in their efforts, we look forward to their support in this process," he said.
He described Najib's call as meaningless if he continues to encourage corporate practices that impede genuine development, stunt competition, and give rise to numerous bad practices.
"Federal policies as well as those enacted in Selangor prior to 2008 are rife with elements of corruption, preferential treatment, and spoon feeding of interested parties," Khalid (right) said in a statement today. He said the public is beginning to realise that privatisation has served to privatise only profits, while socialising losses.
"The way the federal government has implemented privatisation has clearly and consistently used taxpayer money to underwrite failure, without creating any genuine growth," said the former chief executive officer of Guthrie Bhd.
In stark contrast, he said, the Selangor government is striving to ensure that its GLCs are transparent and accountable in any business they conduct and sharpen their competitive edge.
"GLCs must be developed to become more competitive and successful in their own right, without having to rely excessively on government handouts and without encouraging the rise of the rentier class that has become the largest cancer threatening the nation's financial health," he said.
He urged Najib to change the culture of all GLCs and insist that they diligently adhere to good corporate practices, failing to do so will only worsen the leakages "that have bled the country for decades."
He said the Selangor state government is committed to reforming the privatisation process to stop this disproportionate profit making on the part of cronies, and restructure it in such way that the rakyat enjoy the most benefits from the exercise.
"If the federal government and Najib are sincere in their efforts, we look forward to their support in this process," he said.
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