KOTA KINABALU: Sabah's government-linked companies (GLCs) are under close monitoring for irregularities, and the state government will not hesitate to take action if the situation warrants it, says Chief Minister Datuk Shafie Apdal.
“I am monitoring all of them. I won’t spell out what I am doing but the moment that (corruption) happens, I will act.
“We must set a good example and ensure success of the GLCs for the benefit of the state and its people,” Shafie said after addressing chairmen and directors of some 160 GLCs on Monday (Oct 1).
“I’ve said this to my ministers: If you change your house and build big houses now, I will remove them without compromise.
“We must think of Sabah and its people’s wellbeing,” he said, reiterating the state government’s firm stand against corruption.
Reminding GLCs chairmen and directors that 1Malaysia Development Berhad (1MDB) was a GLC, Shafie said that things could go wrong if directors failed in their duty to highlight the dangers of any decision by the board or its management.
“I don’t want these monies find its ways into (personal) banks here or banks in countries overseas,” he added.
“I am ready to be told I am wrong. You can come and tell me that. I am open to views and valid suggestions for the good of the company and state,” he said.
Shafie said that the state was in the process of revamping, merging and possibly even shutting down non-performing GLCs.
He said some GLCs were operating at high costs and making losses.
“We might to have close some or merge it with other agencies. We are looking into it,” he said.
Among the questionable issues he highlighted to top bosses of the state GLCs was of a GLC that was given 30,000 acres of land and developed 20,000 acres with oil palm.
“But they paid some RM40mil for their fertiliser,” he said, adding that the cost of operations was too high for them to be sustainable and such operations should adopt prudent spending.
Shafie said that state-owned Yayasan Sabah and its subsidiaries with 1.1 million hectares of forest concession had failed to develop a strong downstream timber industry in the state over the five decades of its existence.
“They are involved in many things. We need to see how best they optimise their resources and focus to ensure they develop into strong Sabah-based companies,” he said.
He added that the companies were focused on too many things from timber, oil and gas, tourism among others.
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