The government is to restructure the Malaysian Institute of Microelectronic Systems (Mimos), which had been tainted by allegations of mismanagement that had reportedly resulted in the loss of several million ringgit early this year.

Energy, Communications and Multimedia Deputy Minister Tan Chai Ho told the Dewan Rakyat today that the government has decided to allow Mimos to focus on its core activities of research and development (R&D). The plan was approved earlier this month.

He said this while responding to points raised during the debate on the Budget 2004 proposals over the past two weeks.

Mimos, established in 1985, as an agency under Science, Technology and the Environment Ministry, is the secretariat of the National Information Technology Council (NITC) headed by the Prime Minister Dr Mahathir Mohamad.

Tan said a study has been done to review Mimos' information communication technology policy, as well as its R&D and business activities.

Under the restructuring proposal, the NITC will be shifted from Mimos to his ministry while the Finance Ministry will carry out another review on Mimos-related business activities.

Standards questioned

Met later at the Parliament lobby, Tan denied the restructuring was prompted by mismanagement of Mimos. He said the proposal was aimed at ensuring smooth operations within the agency.

A news report on March 13 said Mimos had been paid RM50 million belonging to Tabung Haji's trust account, to which it was not entitled.

Mimos had materially placed capital investments of about RM113 million in Metrowangsa Asset Management Sdn Bhd.

The multi-million ringgit investment by Mimos in areas non-related to its core functions were only unveiled when Metrowangsa directors - economist Ghazali Atan and Mohamed Abdul Wahab - were charged in court.

The duo were charged for conspiring to withdraw the money to pay Mimos and knowingly authorising the submission of misleading statements to the securities commission.

Following that, many quarters had questioned the Mimos' standards of corporate governance and accountability since the agency had been set up using taxpayers' money.