Three GLCs lost money between 2005 and 2009

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KUALA LUMPUR, June 24 — Three government-linked companies (GLCs) owned by Khazanah Nasional Bhd incurred losses between 2005 and 2009, Datuk Seri Najib Razak told the Dewan Rakyat today.

Without naming the GLCs, the prime minister said they suffered losses due to the challenging business environment, the world oil price hike, poor demand for products besides other external factors such as impairment of investment.

“External factors are beyond our control. Therefore, it’s not fair to take action against the GLCs’ board of directors for losses suffered.

“Furthermore, the three GLCs bounced back with better financial results in subsequent years,” said Najib, who is also finance minister, in his written reply to Er Teck Hwa (DAP-Bakri).

Er wanted to know how many GLCs suffered losses since 2005, the action taken against the GLCs’ directors and the financial bailout from the government.

Najib said the three GLCs did not receive any financial bailout from the government.

“Instead, any assistance extended was in the form of incentives as provided for under the GLC Transformation Programme guidelines and government policies,” he said.

Under the Best Corporate Governance Practices, it was the shareholders who should take action against non-performing companies and not the government.