IDEAS says the prime minister's 'overwhelming' power might cause other board members to refrain from going against him in crucial decisions.
PETALING JAYA: A think tank has expressed reservations about Prime Minister Dr Mahathir Mohamad being the chairman of sovereign wealth fund Khazanah Nasional.
Speaking to FMT, Aira Azhari, coordinator of the Democracy and Governance Unit of the Institute for Democracy and Economic Affairs (IDEAS) said the “overwhelming” power of the prime minister might cause other board members to hold back from going against him in crucial decisions.
“There is an inherent power imbalance with the prime minister there. As an alternative, perhaps a civil servant such as a representative from the Prime Minister’s Department can sit on the board.”
Mahathir yesterday defended his appointment as Khazanah chairman, saying it was his duty to put the sovereign wealth fund back on track.
But Aira said parliamentary checks and balances for bodies such as Khazanah would also ensure a high level of transparency and accountability.
She gave the example of Norway’s government pension fund, known as the “Oil Fund”, managed by the finance ministry which ultimately answers to the Norwegian Parliament.
“With the Oil Fund, everyone can view and scrutinise every single one of its investments on its website.
“Everything is laid out in the open, true to its mandate of being a fund for the benefit of the Norwegian people. Malaysia should try to emulate this.”
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Terence Gomez |
Universiti Malaya academic Edmund Terence Gomez however said by convention, the finance minister and the prime minister are on Khazanah’s board.
Gomez, who is an expert on corporate Malaysia and politics, said the inclusion of Economic Affairs Minister Mohamed Azmin Ali as a director was curious but not “completely out of play” given that Khazanah deals with matters related to the economy.
He said it was possible for Khazanah to be transferred out from the Ministry of Finance Inc (MoF Inc) and placed under a different ministry.
“As it stands, Khazanah is still under MoF Inc. If the finance minister is not sitting on the Khazanah board, then in all likelihood he won’t be privy to what the Khazanah board is doing.”
Gomez said he believes however this convention must be reviewed as board members will not dispute the prime minister or ministers at meetings.
Gomez had previously opposed politicians leading statutory bodies and government-linked companies (GLCs) unless they did so in a ministerial or government capacity.
The Centre For A Better Tomorrow (Cenbet) said while the new Khazanah board members were “men of calibre”, they shouldn’t comprise politicians or Cabinet members as it would unnecessarily expose them to liabilities best shouldered by corporate leaders.
“Sovereign wealth funds should be run like any other corporation and this means political considerations should be excluded from the boardroom,” Cenbet said in a statement to FMT.
It said if there was a specific political purpose for the fund, it should be made clear as part of its mission statement for its management to know and follow, and be held accountable to the public.
“By having professionals on the board, the government can bring the board to task in the event of mismanagement,” it added.
Cenbet said matured democracies around the world shunned the practice of having politicians manage public-funded investments and that Malaysia must avoid another failure or bail-out caused by political interference.
“This would also be consistent with institutional reforms which the new government advocates.”
And also why bloggers must also hold highest accountability by showing his photo, ic, credentials, occupation etc etc. Else fuck off
ReplyDeletePeople are confusing Chairman & Board Members with Executives.
ReplyDeleteIt is agreed best practice that the Organisation should be run by professional Executives.
However, all over the world, with professionally run organisations, the principal shareholders are represented on the board, either personally or through trusted representatives. This is to ensure the organisation remains on track with the shareholder's objectives and policies, and not go of on totally different directions.
The board is not allowed to interfere with day to day operations and decision making. Of course, other independent board members are appointed to provide independence and objectivity.
The Malaysian Government is the Sole Shareholder in Khazanah. It is inevitable that they will have a strong presence on the board.
Mahathir wants to be directly involved, there is no wrong in that.
The Ministry of Finance Civil Servants who sat on the disastrous 1MDB Board are a good example of useless bureaucratic representatives.
For comparison, Singapore has two major Government Sovereign Funds.
The Government Investment Corporation GIC is chaired by PM Lee Hsien Loong.
The other Sing Sovereign fund, Temasek, has Mrs. Lee Hsien Loong as CEO.
Now THAT's nepotism.
What say you ?
Hear hear!!!
DeleteAll u ivory tower paper pushers who have done nothing much in creating a successful business in the REAL world!
They have deviated from their promise of power devolution.
DeleteNow THAT's backstabbing the rakyat who voted them.
What say YOU?
What said I?
DeleteRD moron who refuses to own up to his own race identify lah!
Not referring to YOU, you pompous bullshitter. I was asking Monsterball, so stop thinking so highly of yourself.
DeleteWakakakakaka…
DeleteSo, chant the kt's chorus from a rd choirboy!
Oui…… kt can u find a better tuned choirboy ke?
This one - no man, no boy! Perhaps a ltbg in self denied?
And stop pushing your fetish for choirboys to me. I told you, I don't share your penchant for their rear ends.
DeleteTo all those critics who are always ready to Jump the Gun based on whatever reasons be it Manifestos, promises, separation of powers, abuse of positions, power structures, back to the old ways etc etc no amount of reasoning and explanations at this juncture will be able to satisfactory answer why TDM did this or do not do this etc.
ReplyDeleteLet try to be objective and reasonable a bit and understand why the first steps he did maybe not to the liking of everyone.
First, what does TDM means when asked, he replied "I am not paid RM7 million anyway for this post?"
Second, what does he means when he says Khazanah has deviated from it's objective?
I can only sum it all up as TDM has stepped up to take on the job and responsibility of revamping or restructuring Khazanah without expecting any incentive or pay or self interest.
in other words, there is no one at present who can take and do the job required because the amount of political backlash for things required to be done would create more problems instead of solving it.
What he did not or was unable to say is how long this job will take. Does anyone know?
When a simple case of protecting a child against a Paedophile, recognising a world accepted UEC qualification as a qualification for local universities and civil service, getting rid of previous political appointees and bigoted institutions takes so long to handle due to the fears of political backlash from Ketuanan Melayus, this Khazanah problem involves even bigger stakes.
Methinks, he was just a stand-in first for the FM to take the bulls by the horn and when the Bulls are killed and done, he just relinquish it again.
Khazanah is only the pre-dinner drinks: 150B. TDM made himself Chairman, Shahril Ridza appointed MD by TDM.
ReplyDeletePNB (entre) already in the bag, 300B, Zeti appointed.....by TDM.
The main course is EPF (800B), Chairman post just vacated by Shahril Ridza. Who will get this....TDM is looking into this....
Petronas....is the sweet dessert....sky's the limit. Also in the bag. Ahmad Nizam already appointed....by TDM.
This man is on a mission, Cabinet must speak up. LGE is rubbing his hands.....hoping for some crumbs....anything for my Tabung Harapan???
A government of pirates and scoundrels. Real life Pirates of the Caribbean. I'm lovin' it!
DeleteA devastatingly accurate description of your previous Bijan Administration....not Pakatan Harapan
DeleteBut now that aptly described your PH Government! Not even 100 days had past and already they started plundering!
DeleteBTW, Bijan isn't my Administration. Mine is much much higher, and more divine than any on Earth.