The state government is considering shutting down non-performing government linked companies (GLCs).

Giving the warning on Thursday, Finance Minister Datuk Seri Panglima Masidi Manjun reminded GLCs to not just run well but also to make money and pay dividends to the government.

He said that there are about 100 State GLCs but the number of money making GLCs is not many.

“I don’t have the exact figure (but) there are more losing GLCs than profitable ones,” he said.

Masidi reminded the Sabah GLCs and their subsidiary companies that they are not an extension of the government department and also reminded that their role is to make money for the government in terms of dividends.

“Otherwise, it doesn’t make sense for us to make so many GLCs … you pay salaries but no dividend coming back to the government. You upgrade posts but there is no business plan in some of them,” he said.

Speaking to reporters after the launching of Sabah Credit Corporation’s YONO (You Only Need One) SuperApp at the Sabah International Convention Centre (SICC) on Thursday, Masidi added that he was not saying the GLCs that failed should be penalised.

“But I am saying those who fail should try. We do give them a lot of opportunities to try but if they still fail, either you change them or close the company,” he said.

Masidi also said that the non-performing GLCs are running on the government’s and taxpayers’ money.

He also said that some are putting the blame that directors (of GLCs that are appointed) are not qualified.

“I know some people are blaming the directors who are not qualified. But the directors could be anyone.

“But the moment you sit on the board as director, I think you need to treat yourself differently. You are no longer a politician. You are there to run a business and to help the management to run a business,” he reminded.

Masidi also stressed the importance of accountability, good governance and a good business plan in GLCs.

He also urged GLCs to avoid competing with one another.

“You focus on what you are good at and not indulge in business that is already being done by other GLCs. If you are not making money, yet the government keeps pumping money to a couple of GLCs doing the same thing. I don’t think that is a good way of doing business,” he said.

When asked if the government is considering shutting down the non-performing GLCs, Masidi said that they are already considering it.

He said nothing is free in this world, and even the air, when it is polluted, incur costs to make it breathable again.

He urged the non-performing GLCs to set a timeline for themselves to improve their performance.

When asked about people losing jobs if the non-performing GLCs were closed, Masidi replied: “If they don’t want to lose (their) jobs, they have to perform well.”

He also reminded that the government is not a charity organisation.

“You are supposed to make money to pay for your salary because if you expect your salary to be paid by the government, it becomes a charity.

“We know the challenges they face, but there is a limit to the charitable nature of the government. Any government for that matter.”

Earlier, Masidi congratulated SCC for the launching Yono and called on other GLCs to make use of this app.

The app is designed to offer a suite of services that caters to every aspect of one’s financial needs, and is integrated with the DuitNow ecosystem to enhance its functionality.

Source:
courtesy of THE BORNEO POST

by JENNE LAJIUN

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