AUDIT REPORT Most underperforming government-linked companies (GLCs) were established due to the reluctance by the private sector to invest in certain areas such as public utilities, transportation systems, agriculture and research and development, said Treasury secretary-general Mohd Irwan Serigar Abdullah.

Mohd Irwan ( right ) said if the GLCs had benefited the nation and the people, there was no need to close them, adding the government would sell the companies if there were any takers.

Speaking to reporters in Kuala Lumpur yesterday after the inaugural town hall meeting on the second series of the 2013 Auditor-General's Report, he said the government has to fill in areas where the private sector does not want to go.

"The government would privatise the GLCs if they are profitable," he said in defending the performance of GLCs, which have come under scrutiny by the Public Accounts Committee (PAC).

Yesterday, PAC chairperson Nur Jazlan Mohamed urged the government to review the relevance of GLCs which were underperforming in terms of returns to the country, saying some GLCs were no longer relevant to the changing times, not properly managed or no longer fullfilling the objectives of their formation.

Mohd Irwan said all GLCs have a board that reports to the Ministry of Finance while churning out successful ventures.

"If GLCs like KTM bring long-term benefits to the nation and people, should we close them down? It's the same for the agriculture sector in which there are many people who are dependent on rubber, rice and so on.

"We monitor their key performance indicators (KPIs), all have their own board, and they should follow the governance and procurement procedures.

"For companies like KTMB, Indah Water, government printers, hotels, if there are takers, we will sell them off.

"Like the Seri Malaysia Hotel chain, we start it off because we want to cater to the low-income segment. If the hotel makes good business and is profitable, then we privatise it," he said.

- Bernama