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Bar politicians from GLC boards, says economist

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Terence Gomez voices a suspicion that some money is channelled to political parties.

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Free Malaysia Today
Terence Gomez alleges that ruling parties have been abusing GLCs.

PETALING JAYA:
Economist Terence Gomez has proposed that Putrajaya consider prohibiting politicians from being appointed to the boards of government-linked companies (GLCs).

This follows a government disclosure that the upcoming political funding bill may include a provision to prohibit donations to political parties from GLCs that have contracts with the government.

Gomez, who resigned from the Malaysian Anti-Corruption Commission’s consultation and corruption prevention panel last year, told FMT he suspected that politicians receiving stipends or salaries from GLCs would channel some of the money to their parties.

He said he believed “a lot of politicians” were serving on the boards of the many GLCs at federal and state levels.

He welcomed the proposed prohibition of donations, alleging that ruling parties had been abusing GLCs.

Thomas Fann, who chairs the election reform group Bersih, said the bill should disallow any indirect donations or in-kind donations such as the sponsoring of venues, gifts and lucky draw prizes and the provision of free transportation for voters and political candidates.

“Otherwise, these companies will exploit loopholes to channel funds to political parties in exchange for favours,” he said.

Subang MP Wong Chen said GLCs and other firms that had contracts with the government tended to support the government of the day.

Institute of Democracy and Economic Affairs (Ideas) CEO Tricia Yeoh said GLCs that used public funds were accountable to the public and must avoid conflict of interest by refraining from donating to political parties.

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