The Perak government has begun investigations into a state agency subsidiary company with an accumulated loss of more than RM100mil.
Perak senior executive councillor Datuk Ngeh Koo Ham said he received a complaint that the subsidiary company of the State Economic Development Corporation (SEDC) had a paid-up capital of RM50,000 but accumulated losses stood at over RM100mil.
“How can a subsidiary company with a paid-up capital of RM50,000 have accumulated losses of more than RM100mil?” he asked at a press conference Thursday after attending the Perak Water Board meeting here.
He also asked if there were “people using the subsidiary company to siphon money from the Government”.
Ngeh said the officers must have the interest of the state and the people at heart when negotiating contracts.
He pointed out the Government wanted to cut losses, reduce pilferage and increase productivity of state agencies, such as the SEDC and the State Agriculture Development Corporation (SADC).
For example, he said, a subsidiary company of SADC had 9,712ha of land in Indonesia but its income and productivity were far less than those achieved by other corporate companies.
When entering into an agreement to develop prime land, he said, SADC officers must ensure the returns achieved were similar to what the private sector made.
“They should be making more profits and their management, more efficient,” he added.