Kota Kinabalu: Sabah Umno called for a comprehensive overhaul of State government-linked companies (GLCs) following concerns raised by the State Attorney-General over financial “sinkholes.”
Sabah Umno Chief Datuk Seri Bung Moktar Radin said there is urgent need to reform the management of State-owned enterprises to prevent further losses and restore public trust.
“The acknowledgement by the Attorney-General reflects a level of openness and responsibility that is much needed if we are serious about fixing Sabah’s economic governance,” he said in a statement.
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});Brenndon had said the State Government is “very concerned” about loss-making GLCs and has introduced new guidelines requiring business agreements involving GLCs to be vetted by his chambers and approved by the State Cabinet.
“This is the right approach and must be executed seriously, consistently and transparently,” said Bung, adding that leakages and inefficiencies within state GLCs have long been a deep-rooted issue.
“GLCs should be catalysts of State development, not liabilities. It’s time we introduce stricter regulatory mechanisms to ensure GLC business decisions are genuinely aimed at public benefit, not for the gain of a few,” he said.
He called on the state Finance Ministry to conduct a full review of all existing GLCs – evaluating their operational efficiency, business models, and leadership.
“If any are no longer relevant or have become burdensome, restructuring should be considered in the interest of fiscal efficiency and long-term sustainability for Sabah,” he said.
Bung said Sabah Umno remains committed to supporting all efforts towards better governance, transparency and integrity in managing the State’s economy.
He also urged all quarters to put aside political differences and focus on accountability.
“We must speak with one voice to ensure our state assets are managed responsibly. If GLCs continue to fail, it is ultimately the people who will bear the cost,” he said.
“This is about securing Sabah’s future – and reforming these problematic GLCs is the first step towards a more stable and sustainable one.”
The Daily Express recently reported that Soh, speaking at a town hall organised by the Sabah Action Body Advocating Rights (Sabar), said the oversight framework was introduced as part of broader efforts to reform state GLCs.
“Any agreement between a GLC and a third party must go through my chambers. I assure you that I will not let any lopsided agreement through. It is a privilege to serve the State – not an entitlement – and I have to look out for what is in the best interests of the State,” Soh was quoted saying.
He said the state Cabinet has also formed an Oversight Committee co-chaired by the Permanent Secretary of the Finance Ministry and the Chief Minister’s independent financial advisor, with members including a senior lawyer and a partner from a global audit firm.
Soh said the committee has the authority to analyse, investigate and obtain all financial information required from GLCs.
“We recognise that this is part of good governance. We need check-and-balance, oversight, accountability and transparency.
“At the end of the day, if there is bad news, we cannot hide it. We have to be frank and open – otherwise we are culpable ourselves,” he said.