No plan to discuss GLC appointments in Parliament

Proper recruitment procedures and techniques are being adhered to, according to deputy nance minister

By P PREM KUMAR & DASHVEENJIT KAUR / Pic By ISMAIL CHE RUS

P Prem Kumar & D KanyakumariThe government has no plan to seek Parliament’s approval for future appointments of heads in government-linked companies (GLCs).

Deputy Finance Minister Datuk Othman Aziz said the existing mechanism before an appointment of any GLC chief has adequate resources to ensure that a capable leader is placed in charge of the strategic companies.

A stringent vetting process is in place for the appointment of MDs and CEOs of GLCs, Othman told the Dewan Rakyat yesterday.

“It would be a hassle for the GLCs if the appointment would require Parliament’s nod, as it would consume more time,” he said in response to a query from Temerloh MP Nasrudin Hassan.

Nasrudin had asked the government whether it is willing to consider Parliament consultation and decision before the appointment of top executive officers in GLCs.

Othman said proper recruitment procedures and techniques are being adhered to, to achieve transparency and accountability in appointing the top officials.

He said the appointments are made accordingly, following a flow chart which has to be complied with before any vacancy is filled.

“The candidate must be approved by the board of the GLC or Minister of Finance Inc firms, before receiving the con- sent from Treasury secretary general and final approval from the finance minister,” Othman said.

He said the potential candidates are also screened by the Malaysian Anti-Corruption Commission (MACC), which will scan for individual records and integrity.

“The candidates would only receive an appointment letter from the company after MACC gives its clearance.

“However, for CEOs and MDs of banks, they have to pass a separate vetting process by Bank Negara Malaysia,” he added.

Earlier this year, the government agreed to set up an integrity and governance unit at all GLCs and state-and minis- try-owned business entities under the supervision of MACC.

“The government is committed to do necessary reforms, and is committed to fostering a culture of entrepreneurship, transparency, accountability and good regulation,” Othman said.

He further said individuals who are caught compromising the integrity and corporate governance will be blacklisted by MACC.

“When it comes to corporate governance, a yearly meeting between CEOs is held to discuss such latest updates.

“We are also regularly receiving reports from MACC on top managements and GLCs that are involved in corporate governance issues,” Othman said.

Some GLCs ran into controversy recently, for top officials held under investigation for being involved in integrity and governance breach cases — namely the Federal Land Development Authority and Bank Kerjasama Rakyat Malaysia Bhd.