FINANCE Minister Datuk Seri Tengku Zafrul Abdul Aziz has defended the government’s decision to appoint members of Parliament to helm government-linked companies and agencies, despite criticism.
In a July 15 parliamentary reply, he said the appointments of MPs as board members or chair are based on “fit and proper” requirements to ensure “inclusiveness and diversity”.
He said to be part of a listed company’s board of directors, the candidate is evaluated by the nomination and remuneration committee, board members themselves and the Securities Commission (SC).
He added for non-listed companies, the nomination does not concern the SC.
The candidate, he said, is vetted by the Malaysian Anti-Corruption Commission, Malaysia Insolvency Department, and the Federal Court Chief Registrar’s Office, in accordance with the Company Act 2016.
As for politicians joining boards of directors of companies under the Ministry of Finance Inc, he said, “It has been a practice since the previous government.”
He added that the appointment of politicians as non-executive chairpersons was so there would be a limitation of power between the board and the management in accordance with the Malaysian Code of Corporate Governance 2017, and as a check and balance mechanism.
“The appointments of board members in the companies under the MOF Inc were not merely to fill positions.
“But rather, the appointments were matched based on the needs of the companies while taking into consideration the individual’s background and capability.
“Only qualified MPs or those fulfilling the proper criteria would be appointed.”
Zafrul said this in a written parliamentary reply to Datuk Seri Anwar Ibrahim (Port Dickson-Pakatan Harapan) who asked on the policy of MP appointments into GLCs and the relevance of replacing professionals with them.
Since Perikatan Nasional took over Putrajaya, several MPs have been appointed as heads of GLCs and government agencies.
Names include Padang Terap MP Mahdzir Khalid as Tenaga Nasional Bhd chairman, Pasir Salak MP Tajuddin Abdul Rahman as Prasarana Malaysia Bhd chairman, Tanjung Karang MP Noh Omar as Perbadanan Usahawan Nasional Bhd chairman and Besut MP Idris Jusoh as Felda chairman. – July 18, 2020.
