Sabah GLCs not profiting due to quota system for directors, says Bung

KOTA KINABALU: Sabah must change the way it appoints members of the board of directors of state government-linked companies (GLCs), says Datuk Seri Bung Moktar Radin.

The Sabah Barisan Nasional chief said the current system gave more priority to a quota rather than merit and this was the reason why most state GLCs were not turning a profit.

“It is high time the state government makes changes so that the appointments will be based on the demands of the business,” he said in a statement on Friday (Nov 10).

“The appointments should be based on merit and experience and not on a quota for the ruling political party.

“This change is required to ensure state GLCs are more competitive, well managed and profit-oriented in the businesses they are exploring,” added the Kinabatangan MP.

Bung Moktar claimed that some GLCs, without specifying which, had directors that involved the family members and cronies of political figures.

They were being paid high salaries and allowances, he added, and yet these GLCs were making losses.

“This has caused the management of the GLCs to be weak and uncompetitive, that’s why many GLCs are not turning a profit,” he said.

On Thursday (Nov 9), state Finance Minister Datuk Seri Masidi Manjun said most of the GLCs in Sabah were operating at a loss rather than making money for the state government.

The government is not a cash cow, Masidi warned, adding it was the duty of all GLCs to make money for the government or face termination.

He reminded the GLCs that the state government was not a charitable organisation that can continue to inject funds into them whenever they run out of money or make losses just by operating.

Parti Kerjasama Anak Negeri (Anak Negeri) president Datuk Henrynus Amin echoed Bung Moktar’s sentiments, urging the Sabah government to appoint professional managers and avoid or limit political appointees in state GLCs.

Henrynus said the relevant authority must also investigate the use of state GLCs as private companies by unscrupulous politicians to make money, employ or benefit political cronies and family members.

He said there were grouses on the ground that state GLCs were being run as if they were family companies with impunity.

“Anak Negeri wants all alleged irregularities and nepotism within the non-performing state GLCs to be investigated,” he added.

Henrynus said Chief Minister Datuk Seri Hajiji Noor should follow through on his warning earlier in April to revamp all non- performing GLCs.