THE recent standoff in the appointment of Telekom Malaysia Bhd's CEO raises an important question - should the government continue to interfere in the management of listed GLCs or government-linked companies?
Listed companies are usually managed by their board of directors and senior management. Important decisions, strategy and plans are made by them, including the appointment of a CEO.
But in the case of Telekom, it was reported that the CEO's appointment needs the consent of not only its board but also the Ministry of Finance and even the Prime Minister. Finance Minister Lim Guan Eng was quoted as saying that Imri Mokhtar will remain its acting CEO following a directive from Prime Minister Tun Dr Mahathir Mohamad although the board wanted Imri to be made CEO.