Blame for failing Sabah GLCs rests with GRS Cabinet, Warisan rep says

KOTA KINABALU, Nov 15 — A Warisan assemblyman urged the Gabungan Rakyat Sabah government to take firm action against underperforming government-linked companies (GLCs) by replacing executives put in charge.

Tungku assemblyman Assafal Alian said that the state government previously cracked down on state GLCs over such issues, and could not afford to hesitate to do so now.

“I am wondering why only now Masidi is making the disclosure considering that GRS has already been in power for three years,” he said, referring to state Finance Minister Datuk Masidi Manjun who disclosed that most of the state’s 200 GLCs were performing below expectations.

“Does this mean that during the first two years, our state GLCs have been performing well? If it didn’t, then surely we have already wasted hundred millions of ringgit through all these GLCs and we cannot let these failed appointed chairpersons or board of directors continue sitting there for another year,” he said.

Assafal said that since most of the GLCs are owned by the state government, the executives and directors would have been appointed to carry out the policies of the state administration.

“But if the state Cabinet is equally incompetent and think that their post is a simple managerial work, then obviously most of these chairpersons or board of directors will sit idly too, resulting the non-performance that Masidi spoke of.

“GRS leaders have themselves to be blamed and not the employees of these GLCs — after all, many of these chairpersons or board of directors were recommended by the same people who now sits in the state Cabinet,” he stated in a statement today.

Prior to Masidi, Chief Minister Datuk Seri Hajiji Noor also said that less than 10 per cent of the state’s GLCs were returning profits to the government and gave them an RM1 million annual target.

Both Masidi and Hajiji stopped short of saying they would sack any executives or close down the GLCs in the event they did not meet the targets.

Assafal said that Sabah needed to be more progressive and stop using economic models from 90s and early 2000s to manage its assets, capital, and revenue to prevent wastage due to cronyism.

“Warisan’s primary focus will be in propelling Sabah to become a competitive region and able to meet the challenges in a highly competitive global market, dynamic industry trends and geopolitical uncertainty and what most people didn’t realise is that Warisan actually started this reform in 2018 but unfortunately cut short in 2020.

“What we envision from this reform is that everyone who holds governmental or GLC positions, either politically appointed or not, must lead responsibly in accordance with the immediate needs of Sabah and Sabahans without repeatedly being told,” he said.