ALOR SETAR: Kedah Agro Holdings Berhad (KAHB) has ceased operations due to its lack of financial viability, Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said.
He said the troubled Kedah Menteri Besar Incorporated (MBI) subsidiary, however, could not be completely shut down as it still has assets to manage and liabilities to settle.
“I have long known that the company cannot progress, and its operations must be terminated. This should have been done long ago... it’s already overdue but it must be done.
“The company has not been shut down, but its operations have ceased. It still has assets, liabilities and debts so we can’t close (the subsidiary),” he said when met at the ‘Cahaya Ramadan’ programme organised by Yayasan TM here today.
Muhammad Sanusi also said that the state government would not bail out the subsidiary as it goes against the state government’s policies.
It was previously reported that 24 KAHB employees had not received salary payments for seven to nine months.
Human Resources Ministry Steven Sim Chee Keong recently said that KAHB had given its assurance to pay about RM560,000 in backdated salaries to the 24 employees before the upcoming Aidilfitri celebrations.
