PKNS leading the way in good governance

The firm is the one of the 1st organisations in Selangor to establish a division focusing on integrity and transparency

By SHAHEERA AZNAM SHAH / Pic By MUHD AMIN NAHARUL

Selangor is at the forefront of good governance and has been putting all the necessary steps to ensure little room for corrupt practices. The initiative is state-wide and covers all state-owned agencies and companies.

One of the companies which is key to Selangor’s development is the Selangor State Development Corp (PKNS).

The company ensures good corporate governance becomes a culture in the organisation. It has made such governance practices the backbone of the organisation, preventing any form of abuses and ensuring the state-owned unit operates in the best global practices.

In fact, on Nov 14, 2012, PKNS became the first state-owned economic development unit to be the signatory to the Corporate Integrity Pledge (CIP).

PKNS CEO Datin Dr Hajah Noraida Mohd Yusof said the CIP proved the state development unit’s commitment in combating bribery, as well as lifting its corporate code of conduct.

“PKNS was established 54 years ago and throughout our existence, we have adopted numerous steps in empowering good corporate governance to prove our commitment to transparency.

Some of the panellists sharing their experience and views during the forum at the convention

“We realise that a good practice of corporate governance will intensify the performance of an organisation for the long run,” she said at the 5th Integrity Convention in Shah Alam last week.

Themed “Fortifying the Culture of Integrity and Good Corporate Governance”, the biannual conference was attended by over 400 people. It was a platform to discuss key developments in corporate governance among the participants.

She said PKNS is the one of the first organisations in Selangor to establish a division focusing on integrity and transparency in organisation management.

“Apart from the establishment of our organisation and integrity management division, which oversees PKNS’ code of conduct, we managed to reduce about 13% of our annual expenditure by implementing an open tender system in our property developments,” she said.

Rewards from all the good governance practices have been both in the form of efficiency, and better cost management and profitability for the well-known and established organisation.

Noraida also congratulated participants for taking the steps towards transforming their organisations.

PKNS’ commitment to good corporate governance has led to knowledge sharing with foreign and local governments, and private departments and agencies.

“Corrupt practices, abuse of power and irregularities are not new issues. No matter what the size of an organisations, all are at risk. This (fifth) convention is to share knowledge and increase public awareness,” she said.

Meanwhile, Selangor state financial officer Datuk Nor Azmie Diron said: “For those that are already on the right track like PKNS, keep up the momentum so that you continue to be well-respected and worthy of trust. These challenges require teamwork in order to become pillars of good ethics in your organisations.”

One of the main topics discussed at the gathering was the ISO 37001 Anti-Bribery Management System.

Meanwhile, Mass Rapid Transit Corp Sdn Bhd (MRT Corp) board member Datuk Sutinah Sutan said the construction sector has been known as one of the industries with a high risk of corruption.

Themed ‘Fortifying the Culture of Integrity and Good Corporate Governance’, the biannual conference was attended by over 400 people

“It all comes down to the Malaysian mentality of doing business where corruption has to play a role in business dealings, and it is hard to kill this backward thinking.

“In MRT Corp, we are sensitive to corruption as the construction sector is known for its high risk of corruption,” she said.

Selangor is indeed leading the way to fight corruption and ensure the best global practices are in place, and state companies like PKNS are leading the way.