A PAS MP has demanded that Putrajaya explain the billions of ringgit in losses suffered by government linked or owned companies such as Prasarana Malaysia Bhd (Prasarana), 1MDB, and Proton Holdings Bhd (Proton).

PAS Kuala Nerus MP Mohd Khairuddin Aman Razali at-Takiri said Malaysians worry the government is letting politics, cronyism and nepotism override good judgment and business sense.

"The rakyat demands that the government explain why many GLCs are incurring losses, given that the influence the government has in hiring and approving board members and senior management should have ensured that the firms are led by competent, high-calibre individuals," he said in a statement.

He said there were fears that GLCs were turning into platforms to enrich certain quarters, with losses hidden under the umbrella of official company expenses.

"The financial performances of several GLC have raised eyebrows on how serious the government is in developing them as national economic assets.

"The government must provide cogent and transparent answers to the rakyat on the reasons behind the failures, especially when privately-held corporations are prospering," he added.

Mohd Khairuddin (photo) reminded all that the GLCs were meant to be responsible for driving national economic growth, and primarily to increase bumiputera participation in the economic sectors.

However, he noted, several GLCs seemed to have become horror stories, pointing to:

• Public transport and infrastructure development firm Prasarana, which recorded losses amounting to RM885.6 million in 2014, in a 15-year losing streak out of the 17 years since its inception;
• 1MDB, which lost RM665.3 million in 2014 alone, and is reported to be in debt to the tune of RM42 billion;
• Proton, which recorded RM1.4 billion in losses in the third quarter of the financial year 2016, dragging along parent firm DRB-Hicom Bhd (DRB-Hicom), which recorded a loss of RM821.3 million for the current financial year as of March 2016. Proton's poor performance has led to plans for it to be sold off to foreign investors.

Mohd Khairuddin said the rakyat are demanding that the government explains the logic behind subsidising and maintaining loss-making companies such as MASS Rapid Transit Corporation Sdn Bhd (MRT Corp) and Prasarana.

"The excuse that the falling revenues of these firms have exposed them to massive interests on existing debts, as explained by Second Finance Minister Johari Abdul Ghani, does not seem to be concrete and may encourage mismanagement to continue," said the MP.

Several Malaysian GLCs have come under fire for incurring massive debts and losses, some of it linked to poor management choices, too much government hand-holding and, as consecutive national audit reports have found, various leakages and possible corruption.

On Monday, Johari was quoted in media reports as saying that some companies, such as Prasarana, needed to be maintained and subsidised by the government as revenue shortfalls have led to the company being unable to service the interests on its debts.

This, he said, was necessary as these companies provided necessary public transport service and infrastructure.