Bonus bonanza at GLCs despite losses, says Auditor-General report

By Shazwan Mustafa Kamal
The Malaysian Insider
Oct 24, 2011

KUALA LUMPUR, Oct 24 — Indah Water Konsortium (IWK) and Syarikat Prasarana Negara Bhd were among six government-linked companies (GLCs) that paid employees up to two months’ bonus despite suffering an accumulated RM354.91 million in losses in 2009, the Auditor-General’s report said today.

The report also said that sovereign wealth fund Khazanah Nasional was among ten government companies that have not paid Putrajaya any dividends despite making net profits in 2009.

IWK, which suffered losses amounting to RM33.35 million in 2009, made between one-and-a-half to two month’s bonus payments to its staff during the year.

Prasarana, which lost RM188.03 million in the same year, gave out one-and-a-half months’ bonus to its staff.

Companies such as Halal Development Corporation Sdn Bhd (HIDC), Keretapi Tanah Melayu Bhd (KTMB), and Mimos Bhd recorded RM14.57 million, RM92.59 million and RM5.3 million losses respectively in 2009. These companies paid out two to three months’ worth of bonuses to staff.

“Among the justification for approval for bonus payments are to lessen the financial burden of employees… higher KPI (key performance index) standards which reaches desired targets and companies which are not profit-oriented,” said the report.

The report also found that 10 GLCs have not made paid Putrajaya any form of dividends despite making profits last year.

It also said two companies — Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp) and UDA Holdings Bhd — recorded after-tax profits for three years in a row, but have not paid any dividends to the government or stated reasons for not doing so.

Eight other companies — Pembinaan BLT Sdn Bhd, Water Asset Management Company (PAAB), Hotel Seri Malaysia network chain (RHSM), Sarawak Hidro Sdn Bhd, Sepang International Circuit Sdn Bhd, Cyberview Sdn Bhd, Khazanah Nasional Bhd and Multimedia Development Corporation Sdn Bhd — also did not pay dividends to the government despite being profitable in 2009.

“The Auditor-General is of the view that to ensure the best form of administration, all companies need to have a dividend policy which is fitted in the company’s corporate plans.

“This is needed to safeguard the company’s image and the interest of the government which has investments in these companies,” the report said.

  1. #1 by drngsc on Monday, 24 October 2011 - 11:10 pm

    What shall we do? Year in, year out, the AG report shows us the abuses over and over again, It is de javu. So what is new
    This “Piratisation” of the Malaysian economy has been going on so long that those guilty have grown so thick skin that they are no longer ashame. They have built up tolerance and shameless resistance. They will never change.

    We must change the tenant at Putrajaya. That is the only way. GE 13, coming soon, is our best chance. Failure is not an option. Let us work very very hard to throw these shameless pirates out.

  2. #2 by waterfrontcoolie on Monday, 24 October 2011 - 11:24 pm

    Now, we all know why the Gomen keeps on increasing the number of civil servants. A source of their voters, come GE! Giving bonuses in spite of losses! Well, others can do it, why not us? the US financial institutions did it, we shall follow. At least we did follow some of the foot-steps of the great USA!

  3. #3 by boh-liao on Tuesday, 25 October 2011 - 3:46 am

    WHAT shall we DO? Ha, ha – very simple, cannot beat them, join them lor!
    B UmnoB/BN kaki n their cronies, join GLCs, n ENJOY, man – jiak, jiak, jiak lor!
    B happy mah! Happy Deepavali/Diwali!

  4. #4 by k1980 on Tuesday, 25 October 2011 - 8:05 am

    The CEOs and management of the GLCs must be made responsible for their losses. Only then will there be accountability in their work.

  5. #5 by Godfather on Tuesday, 25 October 2011 - 9:37 am

    Hey, these are BN’s fixed deposit and you expect BN not to take care of them ? Abang adek culture mah….if not enough money, can always get from the taxpayers.

  6. #6 by shahrulazmiahmad on Tuesday, 25 October 2011 - 5:51 pm

    Let change the government lah in next GE… I feel sick and tired with these peoples… sama saja… what ever reports produce… same things happen every year… next government… I want somebody like from PAS to handle this potfolio lah.. somemone with integrity and accountability… who know HALAL & HARAM…

  7. #7 by The Orang Hujan on Wednesday, 26 October 2011 - 12:37 am

    DAP questioning GLCs financial accountability? Kindly check Penang draconian’s financial system. Wake up la beb….

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