NFC highlights govt's lack of crisis management

There is a crisis possibility for any countries, organisations and companies. Therefore, the so-called crisis management is meant to avoid or reduce harm and damages through monitoring, early warning, decision-making and handling.

Is the Malaysian government has its own set of crisis management? I have never heard of it. Let's look into the approaches used in the past and see what we can find.

The disputes arising from Umno's party elections in 1987, which led to the implementation of the quota system for nomination of candidates vying for posts especially top positions in the party, have caused a backsliding to the party's democracy. In 1988, the suspension of six Supreme Court in a judicial crisis has damaged the prestige of the judiciary. In 1998, Datuk Seri Anwar Ibrahim was arrested and the country was hit by a financial storm. The then Prime Minister Tun Dr Mahathir Mohamad implemented foreign exchange control measures to stabilise politics and economy, but at the same time, also affected the confidence of foreign investors.

The approaches used to handle Umno leaders involved in scandals are also almost the same. Dr Mohd Khir Toyo lost his Selangor Menteri Besar post when he was caught red-handed at an Australian airport with cash in millions in December 1996. Former Selangor Menteri Besar Tan Sri Abu Hassan Omar resigned on 10 August 2000 after being alleged to have involved in a sex scandal. Of course, there are exceptions, like former Melaka Chief Minister Abdul Rahim Thamby Chik, who was accused of rape but later cleared his name and returned to politics, while Lim Guan Eng, who assisted the girl, was sentenced to 18 months imprisonment.

A thorough investigation is actually the most appropriate method to handle political leaders involved in scandals. It can serve as a warning for others while maintaining law and the spirit of the rule of law.

BN leaders are now in an urgent need to learn the essence of crisis management. Take the National Feedlot Centre (NFC) scandal as an example, it should not be delayed for long as it would extend damages.

When the drawbacks of the NFC were exposed by the Auditor-General's report, the Malaysian Anti-Corruption Commission (MACC) should investigate immediately to see whether it is a violation of law to buy luxurious apartments and pay credit card debts with government loans. However, the MACC left it to the police and the police later passed it back to the MACC, and the government appointed an accounting firm to review the accounts of the NFC. Three months have passed, but the doubts remain uncleared. It is indeed a fail in crisis management.

In addition, the rare earth plant and the Jalan Sultan issues remain unsolved. The government has been questioned as so far, none of the leaders has given a convincing argument over the issues.

Let's conclude with an example. In 2009, there was a series of complaints over the quality of Toyota vehicles. The giant car maker recalled about 7.8 million vehicles worldwide only in January 2010. Company President and CEO Akio Toyoda finally showed up and apologised to affected consumers. The senior officials, who had responded very slowly, were accused of complacent. The crisis has seriously tarnished the reputation of the car maker.

Only prompt handling and not evading the problems can defend credibility and integrity. It applies to enterprises, as well as governments.

-Sin Chew Daily