Board members of govt agencies must speak up
FocusM | 12 Apr 2019 00:30
The recent spate of massive fraud and mismanagement at several large government agencies reiterates the need to have board members who are independent and vocal.
Due to the slack oversight, the Pakatan Harapan government now has to bail out these ailing agencies using billions of ringgit in taxpayers’ funds. 1MDB has a hole of RM40 bil, Lembaga Tabung Haji (LTH) needed a cash injection of RM20 bil while more recently, it was revealed that Felda will need RM6.23 bil to revive it. We shudder to think what other government agencies have been similarly plundered.
The scale of mismanagement at Felda is mind-boggling. A White Paper revealed that RM4.4 bil worth of questionable investments were made. The board also proceeded to approve the purchase of Indonesian planter PT Eagle High Plantations Tbk although the boards of FGV Holdings Bhd and Felda Investment Corp Sdn Bhd objected due to its high valuation. A hotel in England was purchased for RM203 mil above its market value without board approval. Why didn’t the board members speak up?
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