Minister: Political appointments help 'check and balance' GLCs

Finance Minister Tengku Zafrul Abdul Aziz has defended the appointment of politicians to statutory bodies and government-linked companies (GLCs), saying the move helped provide “check and balance” and ensured firms operated per the government’s aspirations.

He said this in his Aug 6 parliamentary reply to Kota Kinabalu MP Chan Foong Hin, who had asked for a list of political appointments, their salary schemes, plus justifications for their selection.

In his answer, Tengku Zafrul (above) said 15 politicians including MPs, state assemblypersons, senators and party members had been appointed to Minister of Finance Incorporated (MOF Inc) companies while “only two” politicians were appointed to statutory bodies parked under his ministry.

“Appointing politicians as non-executive directors and independent non-executive directors limits the power between the board of directors and management, this is in line with MCCG (Malaysian Code of Corporate Governance) 2017 and will act as a check and balance mechanism, to ensure they (the firms) are in line with government policies and aspirations. 

“Political appointments are expected to balance out corporate needs, which are more profit-oriented while fulfilling the rakyat’s expectations,” he explained.

Elaborating, Tengku Zafrul said only “fit and proper” politicians had been chosen based on their abilities, expertise, background, experience, personality, integrity and responsibility.

The appointments were also done based on what companies needed to enable the board of directors to operate “at an optimum level”.

“One way to raise the leadership capacity of the board of directors at MOF Inc companies is by expanding and diversifying the composition of its members in terms of ability, expertise and experience.

“It is important to have either operation, technical or professional experience or specific exposure in related fields to ensure the right person with the right skills is chosen to enhance the structure of a company’s board of directors,” the minister added.

Providing a list of political appointments, Tengku Zafrul, however, declined to disclose their salaries.

“In principle, allowances and incentives for chairpersons of MOF Inc firms are different based on the financial capabilities of each company,” he said, adding that specific information could be obtained from audited financial statements filed with the Companies Commission.

“Allowance rates for federal statutory bodies are subject to recommendations by their respective board of directors as well as approvals from the minister-in-charge,” he added.

- Mkini