SHAH ALAM – The Institute of Democracy and Economic Affairs (Ideas) hopes the new appointment of the board of directors for all Federal Statutory Bodies (FSB) and Government Linked Companies (GLCs) are done according to expertise, skills and experience instead of political factors.
Its Chief Executive Officer, Dr Tricia Yeoh said putting political affiliations as an appointment criteria would affect the integrity of an organisation.
"Furthermore, there is a risk of a conflict of interest when politically appointed figures prioritise programmes with their interests in mind,” she said in a statement recently.
Tricia said Ideas welcomed the government’s decision to end all political appointments in the board of directors of all federal statutory bodies and GLC's including those under the Finance Ministry (incorporated).
She said a website that monitored political appointments from previous administrations, namely Pantau Kuasa showed that there were no more than 200 political appointments in 72 companies.
On the call by certain quarters that the Prime Minister be given the power to appoint the chairman and board of directors of GLC's, Tricia said some statutory bodies have identified entities and individuals who should are able to carry out the task.
Ideas urged the government to release guidelines in setting the criteria for such appointments as there are currently no available guidelines at the statutory body level.
Tricia said the green book on improving the effectiveness of the Board of Directors issued by the Putrajaya Committee in 2006 can be a reference for the appointment of GLC board of directors.
"The evaluation criteria of individual directors and the board of directors should be transparent, tailored to the specific needs of the company and clearly linked to clear consequences for poor performances.
This kind of effort needs to be accompanied by the establishment of a Parliament Special Select Committee that can examine and monitor the annual report of the statutory body more often,” she said.