By Doreenn Leong
ANYONE who is appointed to hold public office, especially ministerial positions, will be under heavy scrutiny.
For instance, shares of the little-known property developer Thriven Global Bhd and food and beverage operator Eden Inc Bhd surged following the appointment of Tan Sri Muhyiddin Yassin as the country’s eighth prime minister. Eden and Thriven are linked to Datuk Fakhri Yassin Mahiaddin, the son of Muhyiddin.
Well-known former banker Tengku Datuk Seri Zafrul Tengku Abdul Aziz had been in the public eye when he was helming CIMB Group Holdings Bhd.
Now as the newly minted finance minister, Zafrul and his family members will be under the spotlight more than ever. Interestingly, Zafrul’s mother Raja Datuk Zaharaton Raja Zainal Abidin has gone from civil service to the corporate sector. She was a civil servant for 34 years with her last post in the government as director general of the Economic Planning Unit.
Currently, she sits on the board of directors of Taliworks Corporation Bhd (appointed on July 2, 2015), Media Prima Bhd (appointed on Aug 13, 2015) and Yinson Holdings Bhd (appointed on Aug 11, 2016). She is also a director of her family-owned company, Kumpulan RZA Sdn Bhd.
While there is probably nothing in the law that prohibits a minister’s family members from holding positions in the private sector, many will be closely watching these companies.
As such, it is imperative for these related companies not to be seen to be in a more favourable position compared to others when it comes to securing contracts or deals.
Likewise, those sitting on the board of directors or a member of regulatory bodies should not be holding positions in public listed companies or firms in related industries.
For instance, there were concerns when Datuk Wee Hoe Soon @ Gooi Hoe Soon was appointed as a board member of Securities Commission Malaysia (SC) as he also sits on the board of Yinson, Red Ideas Holdings Bhd and Perusahaan Sadur Timah Malaysia Bhd.
The SC regulates and develops the capital market and its board members will be privy to matters concerning listed companies.
Under the Securities Commission Act 1993, no person shall be appointed to be or remain as a member of the board if he is or becomes a full-time officer in any public listed company. However, the prohibition shall not apply to a member of the board who is from the ministry that is charged with the responsibility for finance.
The Act also states that the minister, in appointing other members of the board, shall have regard to diversity of the board members in terms of interest, knowledge, skills and experience; as well as the person’s probity and standing and his knowledge, skills and experience in law, economics, finance, accounting or in any other relevant discipline, which will enable him to discharge his functions as a member of the board.
Surely, these appointments would have been vetted and approved by the government, and they may have strong credentials and impeccable reputation. However, one can’t help but wonder if holding such positions or having such family relationships will work in their favour.
It is best to declare their interest or abstain from voting on any related matters to ensure impartiality.
Also, there have also been a slew of changes at government agencies. Social Security Organisation (Socso) chairman Zakri Khir tendered his resignation on April 7 while Bumiputera development agency Majlis Amanah Rakyat chairman Hasnita Hashim and her board members were removed on March 18.
Also on the chopping board was Datuk Noor Farida Mohd Ariffin who had been removed as Human Resource Development Fund (HRDF) chairman on April 1. Five other out of the 18 board of directors members, including the CEO Elanjelian Venugopal, were also removed. Noor Farida had been replaced by Datuk Nelson Renganathan, the chairman of Regent International School and former MIC Youth chief.
There are probably more changes at the top management of government-linked companies and agencies. While some of these changes are inevitable, it is important that those taking over the helm discharge their duties professionally as, ultimately, they are answerable to the rakyat.
Politicians who are appointed to head these government-linked companies and organisations must realise that they have a fiduciary duty to them and must not act in a way that will compromise the financial and other positions of the organisations. That is also against the law and they can be brought to account, if not now, than later. – April 28, 2020
