No need to seek parliament approval for appointment of GLC heads, Dewan Rakyat told

KUALA LUMPUR: There is no need, to seek parliament approval for appointments of heads in government-linked companies (GLCs), the Dewan Rakyat was told.
Stating this, Deputy Finance Minister Datuk Othman Aziz (pix) said the current practice in appointment of GLC heads is sufficient to ensure capable personalities are placed in charge of the strategic companies.
He added that there is a stringent process in vetting personnels for the appointment of managing directors and chief executive officers of GLCs.
"It would be a hassle for the GLCs if the appointment would require parliament's approval, as it would consume more time," Othman said.
He was responding to Nasrudin Hassan (PAS-Temerloh), who asked whether the government is willing to consider proposal that the appointments of executive officers in GLCs are refined through Parliament in advance.
Othman said proper recruitment procedures and techniques are already in place to achieve transparency and accountability in the respective appointments.
He added that the appointment are done according to a flow chart, which has to be complied before filling a vacancy.
"The candidate must be approved by the board of the GLC or Minister of Finance Inc (MoF Inc) firms, before receiving the consent from Treasury Secretary-General and final approval from the Finance Minister," Othman said.
He also said the potential candidates are also screened by the Malaysian Anti-Corruption Commission (MACC) which will scan for individual records and integrity.
"After MACC gives clearance and passing this stage, only then they would receive an appointment letter from the company.
"However, for CEOs and MDs of banks, they have to pass the separate vetting process by Bank Negara Malaysia," he said.
The government has agreed to set up an integrity and governance unit at all GLCs and state and ministry-owned business entities under the supervision of the MACC.
Othman said the government is committed to do necessary reforms and is committed in fostering transparency, accountability and good corporate governance.
He also said that individuals that are caught compromising integrity and corporate governance will be blacklisted by MACC.
"When it comes to corporate governance, a yearly meeting between CEOs are held to discuss such latest updates.
"We are also regularly receiving reports from MACC on top managements and individuals in GLCs that are involved in corporate governance issues," he added.
Some GLCs ran into controversy recently for top officials held for investigations for being involved in integrity and governance breach cases namely the Federal Land Development Authority (FELDA) and Bank Rakyat.