Think-tank urges govt to end political patronage in GLC appointments

 

The Institute for Democracy and Economic Affairs (Ideas) hoped the new appointments on the boards of directors of all federal statutory bodies (FSBs) and government-linked companies (GLCs) made by the current government will be based on expertise, skills, and experience instead of political affiliation alone. 

Chief executive officer Tricia Yeoh said subsuming political affiliation into appointment criteria compromises integrity.

“Moreover, there is a risk of conflict of interest when politically appointed figures prioritise programmes with vested interests,” Yeoh said in a statement today.

She said Ideas lauded the government’s decision to terminate all political appointments made on the boards of directors of all FSBs and GLCs, including those under the Ministry of Finance Incorporated. 

The research institute also revealed its Pantau Kuasa data, a website that tracks political appointments over the last four administrations, indicating that there have been more than 200 political appointments in 72 FSBs under the previous governments.

“Some statutory bodies’ legislations already identify entities and persons that should appoint the chairs and board members.

“These provisions should therefore be respected and adhered to. As for the GLCs, the power of appointment should be given to the government entities that own it or the nomination committee of the board,” she said.

Moving forward, Ideas urges the government to issue guidelines in setting the criteria for the chairperson and board of directors to complement the absence of appointment criteria at the statutory bodies' level. 

As for GLCs, she said the Green Book on Enhancing Board Effectiveness issued by the Putrajaya Committee in 2006 could be a reference for the appointment of GLC boards.

In addition, Yeoh said, the evaluation criteria of individual directors and the board collectively should be transparent, customised to the specific company’s needs and requirements, and explicitly linked to clear consequences for non-performance.

“Such effort ought to be accompanied by the establishment of a Parliamentary Select Committee that can examine and monitor the annual reports of statutory bodies more regularly,” commented Yeoh. 

She added that Ideas would continue to monitor the appointments in the FSBs and selected GLCs in the current government and the public could view the findings on the website regularly. 

- Bernama