Anwar says company losses are not a crime — fraud, abuse and ‘sakau’ are another matter

Shah Alam, September 26 — Prime Minister Datuk Seri Anwar Ibrahim asserted that companies ought not face penalties merely for incurring losses, but criminal action should be taken in cases of fraud, abuse of power or "sakau" (theft), according to a recent address. While addressing concerns regarding the scrutiny of the Lembaga Tabung Haji (TH), Anwar emphasized that losses alone should not be grounds for punishment.

"We do not 'hukum' (punish) people because a company makes losses. We 'hukum' because there is fraud, there is abuse of power, there is 'sakau' (theft), not because of losses," he remarked during a question-and-answer session with Universiti Teknologi MARA (UiTM) alumni and students at UiTM's Dewan Agung Tuanku Canselor.

When discussing UiTM Holdings Sdn Bhd, Anwar cautioned against premature judgment before a thorough examination of its situation. "Now study UiTM Holdings, don't 'hukum' (pass judgment) now," he advised, adding that identified weaknesses should be rectified, but action should be taken if abuses were found. Later, a member of the audience inquired if Anwar could direct the Higher Education Ministry or UiTM alumni to produce a report on UiTM Holdings, which the questioner alleged had amassed more than RM100 million in unresolved losses.

Anwar responded that the Higher Education Ministry would be involved, and that the Prime Minister's Department would cooperate. He also expressed gratitude to UiTM's vice-chancellor for full cooperation over the UiTM Holdings issue.

During the dialogue, Anwar addressed the Royal Commission of Inquiry (RCI) report on TH, stating that it had been completed prior to his appointment as prime minister in 2022 due to requests for additional time by TH's leadership. The report's postponement was attributed to concerns that depositors might withdraw their savings if the report was released earlier.

Anwar rejected accusations of "revenge" and emphasized that decisions regarding investigations, prosecutions and judgments rest with relevant authorities, including the police, the Inland Revenue Board, the Malaysian Anti-Corruption Commission, the attorney general, and judges. He also noted that issues involving the Federal Land Development Authority (Felda), currently under scrutiny, predated his tenure as prime minister, and he stressed the importance of stringent governance at Bumiputera agencies.