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PETALING JAYA: A “wholesale review” of all government-linked companies (GLCs) and government-linked investment companies (GLICs) should be carried out to gauge their impact on society and the economy, says a think tank.
The Institute for Democracy and Economic Affairs (IDEAS) CEO Tricia Yeoh said while the axing of political appointees was a good move, GLCs that were not serving their purpose should also be weeded out, especially if they were not being run competently.
She said these organisations should be evaluated to see if they’ve met the key performance indicators and fulfilled their mandates.
“If they are there just for political reasons, and not fulfilling economic or social functions, then a very strong case can be made to consider abolishing them,” she told FMT.
Yeoh said that in filling vacant posts left by political appointees, the government should rely on measures set out in the 2006 Green Book published by the Putrajaya Committee on GLC High Performance.
She said the main point of the book was to enhance board effectiveness, including placing effective directors of repute in their fields as board members.
“Those replacing ex-political appointees, especially the heads of these bodies, must be able to act professionally. And they need to be people who have the right skill set, knowledge and mindset,” she said.
A leaked circular on Thursday said the Cabinet had agreed to immediately terminate the contracts of political appointees who were made chairmen or board members of federal statutory bodies, companies under Minister of Finance Incorporated (MoF Inc), GLCs and GLICs.
The circular, which made its rounds on social media, was purportedly signed by Chief Secretary to the Government Zuki Ali and directed to the secretaries-general of each ministry.
Former prime minister Muhyiddin Yassin and his successor, Ismail Sabri Yaakob, had made numerous political appointments after they were appointed to the post.
IDEAS, through its Pantau Kuasa initiative, had noted 234 appointments in federal statutory bodies (FSB) from August 2021 to September 2022, of which, 119 were new while 115 were retained from the previous government led by Muhyiddin.
Umno dominated the number of politicians retained in federal statutory bodies with 52, while Bersatu had 28 appointments, and PAS 11. More than half of the new appointments were from Umno (61), followed by Bersatu (19), Parti Bangsa Malaysia (15), PAS (seven) and MCA (five).
Meanwhile, Transparency International Malaysia said technocrats and professionals should fill the posts left vacant in GLCs.
“There are many qualified people who are not given a chance. Having professionals and technocrats can cut down politically-related corruption in GLCs,” it said in a statement. - FMT
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