The Centre to Combat Corruption and Cronyism (C4) has questioned if elected representatives should be appointed as directors of government-linked companies (GLCs).

"How will political connections play out? Will these GLCs compromise on professional and impartial decision-making if pressured?" asked C4 founding director Cynthia Gabriel in a statement today.

Gabriel was responding to the recent furore involving the sacking of the PKR assemblypersons - Cheah Kah Peng (Kebun Bunga) and Ong Chin Wen (Bukit Tengah) - from their GLC directors' posts in Penang.

Chief Minister Lim Guan Eng said the duo were removed because he as chairperson of the GLCs he had 'lost confidence and trust' in them.

The duo were among five PKR reps who abstained from voting on a motion moved by Umno in the state assembly last November to halt coastal land extension projects.

Lim said without informing the state executive council, the duo had reneged on their decision to vote against the motion and described them as 'back-stabbers'.

This prompted Selangor Menteri Besar and PKR deputy chief Azmin Ali to step in and defend the duo for voting according to their conscience and public interest.

But this controversy, according to Gabriel, could have been avoided if there were 'good corporate governance measures' disallowing elected representatives from participating in GLCs.

She said there can be exceptions on very rare occasions when a particular politician’s professional expertise could be of value to a particular GLC's field.

In such instances, his or her appointment should first be explained and justified, she added.

"But this should be the exception rather than the norm," said the C4 executive director.

"The issue of conflict of interest must clearly be checked for any which way you look at it, it is plainly wrong," Gabriel said.

She also pointed out that Malaysia’s GLCs, have, in the past, been cited as among the most extensive and powerful in the world in terms of capitalisation, market presence and socio-political mandate.

Opportunity to restructure

"There are a multitude of issues that arise from the hiring of politically-connected individuals to govern these critical entities, including the transparency of their appointment, their qualification for the responsibilities, (perceived) independence, and the risk of acting as political proxies, amongst others," she said.

Gabriel said GLCs must be allowed to appoint the most qualified and suitable candidates for their board of directors and top management.

"Further feuds and vengeful politics could be minimised in the future through the reduction of politically-influenced individuals directing state-owned enterprises," she noted.

"Perhaps some good will come out this feud with an opportunity to restructure and for a real paradigm shift in Malaysia to allow for genuine transformation of governance in government," she said.

The statement was jointly signed by Gabriel, C4 chairperson Simon Sipaun and members Richard Yeoh, Dr Ahmad Farouk Musa and university don Zaharom Nain.