Azmin: It will be properly managed

SHAH ALAM: Selangor Mentri Besar Azmin Ali reassured the state assembly that the newly-formed Darul Ehsan Investment Group (DEIG) will be managed using the highest form of governance.

“We will continue to subscribe to the highest form of governance in Selangor,” Azmin promised in response to debates on DEIG.

Many of the elected representatives voiced their concerns that DEIG was registered under the Company’s Act and was going to embark on business ventures. Several of them did not want the state to be involved in business like other regular business entities.

The DEIG was formed in May to take over the state’s 12 companies which were currently under the Mentri Besar Incorporated (MBI).

Azmin said he agreed with the opinion that the state government should not be involved in business, but added there were sectors and areas where the state government should protect the interest of the people.

He said from Selangor’s experience when state land was given to a private company for development, the company did not build low-cost homes at all.

It was the same with the water industry, said Azmin, adding the water tariffs had gone up when it was given to private companies.

He said he would present a detailed report on DEIG at the next state assembly sitting in November. Azmin said he was not offended with the dissent raised by the assemblymen as it showed the Selangor government was different from other governments.

Select Committee on Government Agencies, Statutory Bodies and State Subsidiary Companies (JP-ABAS) chairman Saari Sungib (PAS-Hulu Kelang) raised the matter during debate time and said more fine-tuning was required before DEIG became operational.

He added that the consolidation of the companies under MBI as recommended by the state audit department must also continue.

Saari added more than half of the state assemblymen shared his sentiments over the setting-up of DEIG.

“Our concern is that DEIG will be managed by the same person who is managing MBI, both will be under the chairmanship of the mentri besar and we fear there will be insufficient check and balance,” he added.

Earlier in the house, Yeo Bee Yin (DAP-Damansara Utama) said one of her concerns was that DEIG did not have any independent non-executive board members.

Dr Xavier Jayakumar said the state must move forward and the procurement industry was important for any state.

He said the Federal Government’s investment arm Khazanah Nasional was also doing well in its commercial endeavours.

The house also passed a motion for the setting up of DEIG to be restudied.

A report by JP-Abas on DEIG, with its recommendations, was also tabled and approved by the state assembly yesterday.

The state government will have to table its response to the recommendations in the November sitting.