GLCs, GLICs are public trust, not political property, says CSO Platform

KUALA LUMPUR: The CSO Platform for Reform has argued that government-linked companies (GLCs) and government-linked investment companies (GLICs) should be viewed as public trust institutions, not political assets, following the Royal Commission of Inquiry (RCI) report into the Lembaga Tabung Haji. The coalition contends that the findings of the RCI report should extend beyond the pilgrims fund to cover all state-linked entities that hold public assets and resources.

GLCs and GLICs manage assets and resources of substantial public interest, and therefore must be governed as public trust entities rather than patronage networks or political favors. The coalition also condemned opposition MPs who walked out during a special Dewan Rakyat session to debate the RCI report, alleging that their behavior undermined Parliament's role in ensuring accountability.

The RCI report, released on July 29 and discussed on August 11, revealed a significant asset-liability deficit at Tabung Haji, along with the use of fraudulent accounting practices to generate improper profits and take high-risk investments that led to billions of ringgit in losses. Seven investments suffered total losses, resulting in approximately RM13 billion in rescue and impairment costs that were primarily covered by a government bailout involving Urusharta Jamaah Sdn Bhd.

The CSO Platform emphasized that the fund's accountability extends beyond its depositors and beneficiaries to all Malaysians, as public funds were used to absorb these substantial losses. The coalition rejected the notion that individuals raising concerns about Tabung Haji in the media should be questioned, stressing the importance of transparency when dealing with public funds.

They called for strict action against any individual found responsible for mismanagement or negligence, following a thorough investigation, and urged authorities to reveal the names, roles, and specific findings pertaining to those held accountable. Additionally, the CSO Platform reiterated its demand for board and senior management appointments at GLCs and GLICs to be made through transparent, merit-based processes free from political interference.

They also advocated for stronger independent audits and oversight mechanisms to prevent future institutional failures.