WONDERFUL TO BE WIVES OF STATESMEN

- Relevant to P1 and partially P3. Also of interest to all Malaysians.

PIC 01: DISNEY, THE HAPPIEST PLACE ON EARTH

PIC 02: PRACTICE GOOD GOVERNANCE?

Author’s official political stand: As an independent observer and politically neutral, the article below is intended to demonstrate practical knowledge and application of ACCA Professional Papers, P1 & P3. The author does NOT endorse, support or recommend affiliation to any political party.

Corporate Governance at Play
1) Balkis was the welfare and charity organization set up by the wives of Selangor’s elected representatives during Barisan Nasional (BN) rule. RM10million was transferred to Bakti, the charity organization for wives of federal government ministers.

2) The Selangor Select Committee on Competency, Accountability and Transparency (SELCAT) concluded its public inquiry into the expenses of the now-defunct Balkis on Wednesday, March 31, 2009.

Here are a few interesting facts found on Balkis:

3) State investment agency Permodalan Negeri Selangor Bhd (PNSB) spent almost RM1m on a Dec 2004 Eurodisney trip for then Selangor Menteri Besar Datuk Seri Dr Mohd Khir Toyo, his wife, their three children and maid.

4) If that is not enough, Datuk Seri went to Disneyland in Orlando, Florida, in Jan 2008 with his entourage of advisors- his wife, their three children and again the maid. Cost him nothing but taxpayers of RM650,000 for their entire USA trip.

5) PNSB CEO Datin Khairiyah Abu Hassan defended the expenditure was justified as this was on a fact finding mission in preparation for setting up an 10 acres theme park in Bagan Lalang. I wonder how the children, wife and of course the maid is useful in contributing to the project evaluation program which involves a proper study of feasibility, acceptability and suitability analysis.

6) Obviously, a mega project such as this, any company or project team will meet with Disney top management, CEO Steve Jobs, to discuss strategic collaboration opportunity. But a closer look at the receipt expenditures for the trip showed that the team only ‘went as far as’ buying ordinary entry tickets into the park as ordinary public visitors. No meetings with Disney senior management, none whatsoever. But I must admit, the team must have met Mickey Mouse and friends.

7) Perhaps they are on secret finding mission. But at Malaysian base, PNSB Board has received no progress and evaluation report based on both trips to Disney.

PIC 03: RECENT CHARGE AGAINST SELCAT's INITIATOR, TAN SRI KHALID, FOR MISUSE OF TAXPAYERS FUND IN BUYING 46 COWS AS GIFTS TO LOCAL COMMUNITIES. IRONICALLY THE WHISTLE-BLOWER IS DATUK SERI DR. MOHD. KHIR!

8) SELCAT has practice good corporate governance in making public or being transparent about Balkis. The only downside is the body is not an independent body as it is the initiative of Pakatan Rakyat that controls Selangor state. For SELCAT is to be an effective watchdog, then its committee members should comprise of independent Non Executive Directors selected from various sectors such as:

- Inland Revenue Department to audit expenditures,

-Industry captains of Trade Associations to offer business advise,

-University Professors specialising in research of Economic Development and Regional Strategic Planning and perhaps

'

-NGO of green environment movements to win over CSR investors.

9) Now on UMNO's Corporate Governance. UMNO, a monopoly power in Barisan Nasional owing to the fact that they control largest number of Parliament seats has had single handedly selected Datuk Seri Dr Mohd Khir Toyo as Selangor’s leader. The very senior UMNO politician has not denied spending RM1.65m of public money on a private family holiday. What happened to their governance, or the lack of it? Their leader is accused of gross misconduct and poor accountability to the rakyat. Spending RM1.65 million with no feasibility reports to show? No disciplinary actions are suggested nor did the Nomination Committee reject the application of Datuk Seri Dr Mohd Khir Toyo as an election candidate for supreme council position. (By the way, he lost. Two possible explanations : (i) UMNO 2800+ division heads rejected his poor performance(ii) A rival candidate successfully swing the votes to his favour through money politics.
PIC 03: THE NEWLY ELECTED UMNO YOUTH HEAD.

10) What about us, the rakyat? There is no public outrage? Is RM1.65million an insignificant sum for us to voice out? Bear in mind, the trips made aren’t illegal but could be deemed as Benefits in Kind accorded to top executive statesmen. Usually this is justified if stakeholders feel that the Board has done a tremendous job for Selangor state. Such benefits are ‘earned’. Justified? Travel back to end-2007 and early 2008. You will recall USA sub-prime property sector bubble burst, oil prices were sky high and local food prices were inching up due to record high commodities prices. Trying and nervous economic times. I cannot say that the Board of Selangor has done a splendid job to manage such external shocks, can I?

11) RM1.65 million is an opportune sum! In INTI College Subang, full tuition fee for 9 CAT subjects is RM6,300 per candidate. The amount could provide scholarships to 262 students! That brings financial relieve to 262 families. Think of the economic benefit of developing intellectual capabilities. Education brings bright future! But was spent instead on roller coaster rides – in foreign lands. Why lack of public reaction? Likely as private individuals, we lack the resource, time and voice to speak up. Weak we are as Keep Informed" stakeholders.

12) Conclusion: this article focuses on Corporate Governance through use of Committees and Stakeholders’ influence. The article strives to take an objective view evaluating the effectiveness of both the Federal Government and Selangor’s Opposition Ruling Government.

13) Final statement :

“A statesman is a politician who places himself at the service of the nation. A politician is a statesman who places the nation at his service.” - Georges Pompidou

PIC 05: Fikiran Gadis Jelita, "Manalah saya dapat cari suami yang baik? Yang berupaya bawa saya ke Disney land?"