A Perak DAP assemblyperson has expressed concern that a board or chief executive officer might not be appointed to MB Inc and that its accounts would not be audited.

Leong Cheok Keng (Malim Nawar) told the state legislative assembly today that MB Inc was formed following the MB Inc Enactment in 1951.

Its purpose was to hold property and enter into contracts, he said when debating the Perak budget.

He added that there could be a possible conflict of interests involving MB Inc and Perak Menteri Besar Zambry Abdul Kadir.

“In pre-Merdeka (days), the post of MB was not the same as today. He was then considered a civil servant who was appointed and not elected... The purpose of the enactment is not needed and not relevant now.

"However, in 2011, there is an amendment to the enactment giving MB Inc the power to carry out development activities.

“On perusing this enactment, there are only two sections - Sections 4A and 4B - which are new."

Leong said the amendment did not mention anything on the appointment of MB Inc board members or CEO, although Zambry said its formation was to increase the state's revenue.

He pointed out that the Perak State Development Corporation Enactment covers the appointment of members, officers and also stipulates the preparation of annual audited accounts.

The accounts would be tabled in the state legislative assembly for deliberation.

"Hence, I view the MB Inc amendment as illegal and if this is true, it can be challenged from a legal perspective," said Leong, who is also a lawyer.

"If Zambry says it is formed to generate revenue for the state. we are interested in looking at the MB Inc accounts and its income and expenses," he said.

He added that according to the Incorporation Act 1962 (State Legislatures Competency), accounts and reports of agencies bodies under the state government involved in commercial activities should be tabled by the MB in the state legislative assembly.

Leong hopes Zambry, who is also Pangkor assemblyperson, could give an explanation as he (Zambry) had stressed that MB Inc is different from the MB's post.

He said if there was no board appointed and if the property was held by MB Inc, then the latter would seem to be like an alter ego of the MB.

"This will create a conflict of interests: MB Inc cannot be differentiated from the MB's post. This means the applicant for land is MB Inc where the MB and his exco members could approve it.

"Where is the check and balance?" he asked.