MB: RM7mil figure includes other expenses
Koh Jun LinPublished: Feb 12, 2014 8:14 AM | Updated: Feb 12, 2014 10:05 AM
Selangor Menteri Besar Khalid Ibrahim has clarified the disputed savings in cost with regard to the dismissal of 19 PKNS Holdings Sdn Bhd (PHSB) contract staff, saying that the RM7 million figure he cited, included other expenses.
Selangor Menteri Besar Khalid Ibrahim has clarified the disputed savings in cost with regard to the dismissal of 19 PKNS Holdings Sdn Bhd (PHSB) contract staff, saying that the RM7 million figure he cited, included other expenses.
He said the RM2 million figure provided by the ex-staff members only accounts for their wages but not other expenses incurred over the course of their employment.
"That is why they are not made CEOs… Salary is one part of expenses, but when you manage a corporation, it includes other things - rental, electricity, everything," he told a press conference today after chairing an exco meeting.
He added that in most firms, wages account about a-third of overall expenditure.
The former PHSB staff member had previously pointed out that they were only paid RM2 million last year, in comparison to the RM7 million Khalid cited as savings for the termination.
Khalid had justified the measure, saying that it saves PHSB’s parent company, Selangor State Development Corporation’s (PKNS), funds since there is a duplication of tasks between PHSB contract staff and PKNS permanent staff.
Panel to monitor PKNS's spending
Separately, Khalid announced that exco members Iskandar Abdul Samad, Teng Chang Khim, and Rodziah Ismail have been appointed to monitor PKNS’s spending, saying that there is room for improvement, in addition to a Malaysian Anti-Corruption Commission (MACC) probe on allegations of abuse of funds meant for the PKNS Football Club.
“We will monitor PKNS’ development carefully to ensure that company resources are managed professionally to give maximum benefit for the people of Selangor, in line with the ‘State Revenue for the People’ agenda,” he said.
He added that the trio will be watching the football club’s RM9 million annual allocation, RM5 million a year for entrepreneur development, and RM30 million a year for corporate social responsibility programmes.
To a question, Khalid said the recent debacle over the terminated staff and confusion that led to Bukit Antarabangsa assemblyperson Azmin Ali’s dismissal from PKNS’ board has improved PKNS’ corporate image.
“The image that people have on PKNS is that it is not a ‘real’ corporate and commercial enterprise that tries to see that the resources of the corporation is being utilised properly.
“Now people realise that we have to adhere to corporate governance and integrity (standards), and we are willing to face issues and correct it now, without any reservations,” he said.
During the press conference, Khalid also evaded questions regarding his status as menteri besar, in view of speculation that PKR de facto leader Anwar Ibrahim will take over his post after the upcoming Kajang by-election.
“I am not obliged to answer this question because it will have a negative and positive impact, so I think I have already answered that it will be explained when necessary,” he said when asked if he is prepared to step down.
He was similarly evasive when asked to comment on statements from PKR leaders such as Rafizi Ramili that Anwar had to be brought into Selangor because Khalid was unable to handle political attacks from Umno, and when questioned when his status as menteri besar would be announced.
He said the RM2 million figure provided by the ex-staff members only accounts for their wages but not other expenses incurred over the course of their employment.
"That is why they are not made CEOs… Salary is one part of expenses, but when you manage a corporation, it includes other things - rental, electricity, everything," he told a press conference today after chairing an exco meeting.
He added that in most firms, wages account about a-third of overall expenditure.
The former PHSB staff member had previously pointed out that they were only paid RM2 million last year, in comparison to the RM7 million Khalid cited as savings for the termination.
Khalid had justified the measure, saying that it saves PHSB’s parent company, Selangor State Development Corporation’s (PKNS), funds since there is a duplication of tasks between PHSB contract staff and PKNS permanent staff.
Panel to monitor PKNS's spending
Separately, Khalid announced that exco members Iskandar Abdul Samad, Teng Chang Khim, and Rodziah Ismail have been appointed to monitor PKNS’s spending, saying that there is room for improvement, in addition to a Malaysian Anti-Corruption Commission (MACC) probe on allegations of abuse of funds meant for the PKNS Football Club.
“We will monitor PKNS’ development carefully to ensure that company resources are managed professionally to give maximum benefit for the people of Selangor, in line with the ‘State Revenue for the People’ agenda,” he said.He added that the trio will be watching the football club’s RM9 million annual allocation, RM5 million a year for entrepreneur development, and RM30 million a year for corporate social responsibility programmes.
To a question, Khalid said the recent debacle over the terminated staff and confusion that led to Bukit Antarabangsa assemblyperson Azmin Ali’s dismissal from PKNS’ board has improved PKNS’ corporate image.
“The image that people have on PKNS is that it is not a ‘real’ corporate and commercial enterprise that tries to see that the resources of the corporation is being utilised properly.
“Now people realise that we have to adhere to corporate governance and integrity (standards), and we are willing to face issues and correct it now, without any reservations,” he said.
During the press conference, Khalid also evaded questions regarding his status as menteri besar, in view of speculation that PKR de facto leader Anwar Ibrahim will take over his post after the upcoming Kajang by-election.
“I am not obliged to answer this question because it will have a negative and positive impact, so I think I have already answered that it will be explained when necessary,” he said when asked if he is prepared to step down.
He was similarly evasive when asked to comment on statements from PKR leaders such as Rafizi Ramili that Anwar had to be brought into Selangor because Khalid was unable to handle political attacks from Umno, and when questioned when his status as menteri besar would be announced.
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