TI-M urges rethink of public-private partnerships, GLCs

Putrajaya has been called on to reconsider public-private partnerships (PPP) and the existence of GLCs to curb corruption.

Speaking at a conference in Kuala Lumpur today, Transparency International Malaysia president Akhbar Satar pointed out that it is unreasonable for the government to fund PPP projects and bear the losses if these fail.

“The capital for PPP projects are given by the government. Meaning to say the government awards the contract to a company, and the government finances the projects," he said.

"What happens when a project makes a loss? The Finance Ministry has to pay. I think the government should relook the PPP system.

"How can capital be given by the government, and the Finance Ministry bear the losses? At least we have to share the capital (with private companies)."

Akhbar also suggested that Putrajaya should beef up its integrity by putting a stop to money politics, and make its annual budget announcements more accurate by factoring in the cost of megaprojects. 

'Shut down GLCs'

The TI-M president also stressed that the existence of GLCs and other state-owned companies should be reconsidered, claiming that such companies are prone to corruption. 

“I think the GLCs and the state-owned enterprises should be closed. How can the government be involved in business? 

"The government should take care of us first. The most important thing is that the bosses of the GLCs all are corrupt," Akhbar claimed during his speech at the conference.

Akhbar later elaborated on his remarks, saying that the government should put the interests of the people first.

"They should do more on social welfare in terms of healthcare or education,” he told reporters after the conference.

When asked if it is practical to close down GLCs like Tenaga Nasional Malaysia (TNB) or Petronas, he conceded that one or two of such companies can be maintained.

However, he later approached reporters, and explained that what he meant was that GLCs should be fully privatised – not closed – so that the government can concentrate on its role as a regulator. - Mkini