Azmin: Newly formed investment group will be managed appropriately

SHAH ALAM: Selangor Mentri Besar Azmin Ali (pic) reassured the state assembly on Wednesday that the newly formed Darul Ehsan Investment Group (DEIG) would be managed accordingly and appropriately.

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

Many of the state’s elected representatives voiced their concerns that DEIG was registered under the Company’s Act and was going to embark on business ventures.

They opined that the state must not be involved in business along the same lines as a regular business entities.

DEIG was formed in May to take over the state’s 12 companies, which were under 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 which it (state government) should look into to protect the interests of the people.

“If everything is given to the private sector, there may be a situation where they will only focus on profits and do nothing in regard to corporate social responsibility,’’ he said.

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,’’ he said.

“It was the same with the water industry,’’ said Azmin adding that water tariffs had gone up when it was given to a private concessionaires.

He said he would present a detailed report on DEIG at the next state assembly session in November.

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.

She said DEIG, which was incorporated under the Company’s Act, was not blocked by any enactment or legislation from obtaining loans.

“I am concerned that DEIG may use its assets to get loans to develop big projects.

“We are not questioning the mentri besar’s integrity but concerned about the future. I hope the mentri besar will not be offended,’’ said Yeo.