Azmin and Khalid argue over setting up of new state-owned firm

Full attention: Khalid at the state legislative assembly in Shah Alam.

SHAH ALAM: Both the former and current mentri besar of Selangor locked horns at the state legislative assembly as they argued about a state-owned company.

Former mentri besar Tan Sri Khalid Ibrahim (Port Klang) questioned the rationale behind his successor Azmin Ali’s (Bukit Antarabangsa) move of setting up the new Darul Ehsan Invest­ment Group (DEIG) under the state’s investment arm Mentri Besar Incorporated (MBI).

Khalid said there was no necessity to do so as Selangor already had MBI which was provided for under a state enactment.

But Azmin said the move was to avoid the state from incurring losses, preventing mismanagement and ensuring transparency in the state investment arm.

He cited MBI’s RM2.6mil severance payment to Khalid’s eight aides before the latter had left office last year as an example of mismanagement by the state conglomerate.

The argument escalated with Azmin saying the payment was not done openly and transparently.

“Where is your own transparency? The state assembly was not informed of the payout, the directors of MBI were not informed,” Azmin said angrily.

Khalid then rebuked Azmin and said he should stop talking about the matter as it was now in court.

At this juncture, Speaker Hannah Yeoh ordered both Azmin and Khalid to sit down.

Later, Khalid told reporters that having a separate company under MBI would compromise on transparency.

“I am of the opinion that the state government does not have the expertise to manage the state’s assets and because of this, it must be debated at the assembly first to ensure transparency,” he added.

When approached, Azmin said the state had established DEIG, which was registered in May this year, to protect the state from risks.

He said Selangor needed a new and fresh entity to rationalise and consolidate the 12 subsidiary companies under MBI.

Meanwhile, Barisan Nasional assemblymen also questioned the basis behind the formation of DEIG and its incorporation under the Companies Act.

Sungai Panjang assemblyman Budiman Zohdi said it would be safer for the state’s 12 companies to be restructured under MBI instead of DEIG.

He said MBI was safer as it was established under a state enactment while DEIG was set up under the Companies Act.

“As it is registered under the Companies Act, DEIG is not required to be audited by the state government nor does it have an obligation to report at the state legislative assembly,” Budiman told reporters at the sidelines of the assembly.

He said Barisan-elected representatives were also concerned that as a company, DEIG could also take out loans.