Bung on why most GLCs in Sabah are not doing well
Published on: Saturday, November 11, 2023
Bung said it was time for the State Government to change its strategy for the appointment of board members for each GLC and for its members to work according to business strategies.
Kota Kinabalu: Sabah Barisan Nasional (BN) Chairman Datuk Seri Bung Moktar Radin said most government-linked companies (GLCs) in the State are weak because they are not managed well.
He claimed the State Government does not prioritise the interests of the GLCs involved, especially in the aspect of appointing the board of directors, which is based on filling up political party quota rather than merit.
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The Kinabatangan MP said several GLCs appoint officials from family and cronies, while paying allowances and salaries that are too high that it affects the GLCs’ financial resources.
“This causes the GLCs’ management to be stagnant, weak and uncompetitive.
Our report on Nov 10, 2023.
“That is why most GLCs in the State have suffered losses rather than making profits, and this matter should be avoided from affecting the GLCs concerned,” he said in a statement, Friday.
He was responding to State Finance Minister Datuk Seri Masidi Manjun’s statement that there are more loss-making GLCs compared to profit-making ones.
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Masidi had said that the State Government is not a welfare organisation that can continue funding a GLC when it is not profitable.
Bung, who is also Sabah Umno Chairman, said it was time for the State Government to change its strategy for the appointment of board members for each GLC and for its members to work according to business strategies.
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He stressed that a person’s merit and background experience should be prioritised when appointing board members, and not based on the ruling political party’s quota.
“The State Government needs to make changes to ensure that GLCs are more competitive, well managed, profit-oriented and effective in the business they explore,” said the Lamag Assemblyman.
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