Politics

Old habits of patronage are fading within the ‘New Malaysia’

The GLC Reform Cluster, a monitoring group that is an element of the “Platform for Reform” civil society coalition of fifty non-governmental organizations, said “slow progress” had been made in reforming the GLC.

“Instead of providing services to People (people) and securing our common future as a nation, GLCs are used as patronage mechanisms to award contracts to well-connected politicians and businesses,” the group said in a press release.

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“Some directors also receive unreasonably high salaries. As a result of such abuses under Barisan Nasional, GLC has been embroiled in numerous controversies.”

The group called for the creation of an independent task force to oversee GLCs, analyze their audited reports and put in place mechanisms to implement accountability and transparency.

GLCs include statutory bodies, foundations and sovereign wealth funds similar to the infamous 1Development of Malaysia Berhad (1MDB), which is the goal of quite a few ongoing money laundering investigations which have resulted in charges against each Goldman Sachs bankers and former senior government officials.
The patronage and management of GLCs has been a long-standing issue in Malaysia, particularly resulting from their lack of transparency. In April last yr, the Prime Minister Mahathir Mohamad referred to such corporations as “monsters,” arguing that their original goal of alleviating socioeconomic disparities had not been met.
Syed Saddiq bin Syed Abdul Rahman. Photo: SCMP / Nora Tam

There was public outcry recently when the Malaysian United Indigenous Party (Bersatu), a celebration within the ruling coalition, appeared to provide preferential treatment to its members in GLC board appointments, and Cabinet Minister Rina Harun approved such appointments from Bersatu’s ranks. A Bersatu member was recently appointed to go the federal higher education lending authority, and the daughter of a government minister from a separate party was appointed to the board of a government microfinance agency.

When the party’s youth leader Syed Saddiq Syed Abdul Rahman rejected calls on the annual general meeting to proceed such preferential treatment, some factions demanded his resignation.

Political economist Terence Gomez, a member of the GLC Reform Cluster who wrote a letter critical of political patronage and the division of ministries in the brand new government, also got here under fire from Mahathir’s adviser and former finance minister Daim Zainuddin.

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“What is clear, and even becoming the norm, is Pakatan’s consistent message to the nation: selective patronage will continue. The main proponent of this message is Bersatu,” Gomez said, linking the practice to government efforts focused on gathering political support amongst ethnic Malays. This group, the so-called bumiputra (sons of the soil) constitute nearly all of voters in Malaysia, but pollsters say they don’t overwhelmingly support the present administration.

For Gomez, Bersatu is an “offshoot” of the previous ruling party, the United Malays National Organization (Umno), which positioned itself as a defender of Malay rights.

In a pointy response, Daim – who heads the Council of Eminent Persons, an advisory body to the federal government – denied patronage in government dealings and accused Gomez of second-guessing, saying that “bumiputra program and the national program weren’t mutually exclusive.

“Until we solve the problem bumiputra problem, we will never be able to move forward as a nation. But as the government has made clear, it will be recalibrated and anyone who needs help will be helped,” he said.

Khairy Jamaluddin. Photo: SCMP / Nora Tam

It is unclear what number of GLCs there are in Malaysia as there isn’t any definitive catalog of them. Last week, the Ministry of Economy published an inventory of GLCs falling under its competences. A couple of days later, a federal government diary was released detailing ministerial oversight of the agencies – but was withdrawn just a few hours later resulting from missing information.

On Twitter, opposition MP Khairy Jamaluddin said that the rumored reason for the withdrawal was a “turf war over not awarding certain agencies to certain ministers.”

Although the GLC list in the federal government bulletin has been withdrawn, several other ministries have announced their intention to publish their very own lists.

International Trade and Industry Minister Darell Leikeng described publishing such lists as a “good idea”, while Saddiq, who can be youth and sports minister, called for an end to patronage, more open tenders and a “culture of equality” in management.

This article appeared within the print edition of the South China Morning Post as: Mahathir’s party In the highlight over bribery

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