I refer to R Nadeswaran\’s column in theSun of June 18, 2012, and respond to the statement by the convicted former MB of Selangor. Mohd Khir Toyo stated in a meeting with theSun journalist that \”PKNS is a private company,\” implying that PKNS was free to do anything its directors deemed fit and proper! Nothing is further from the truth! Truth does matter; maybe never to crooks!

If I am not mistaken, all state economic development corporations (SEDCs) were set up under an Act of Law and are designed originally to be a state agency for the economic and business development in the state. Sure, they will enabled to form subsidiaries under the Companies Act, but the question about their rationale and raison d\’être is not a matter for debate, to me at least.

A simple research by an undergraduate student in any of the public libraries will declare the nature and status of all these SEDCs. PKNS is also an SEDC and it has an explicit agenda for seeking to grow the bumiputera commercial and industrial community or the BCIC Agenda, which was first promoted by the Implementation, Coordination and Development Administration Unit (ICDAU) of the PM\’s Department.

In response to May 13, 1969

It was explicitly set up under the Abdul Razak Hussein administration in response to the issues and problems arising from May 13, 1969. Most, if not all SEDCs, were formed after the agenda of the BCIC was approved by the cabinet and laws passed to allow for such a unique state creation that can be involved in business activity with public funds.

To prove my point I did simple research. I typed in \”State Economic Corporations in Malaysia\” and see what Wikipedia offered me!

\”Johor Corporation (JCorp) is a Malaysian state corporation, formerly known as the \’Johor State Economic Development Corporation\’ (JSEDC). Formed in 1968, it is part of the government\’s affirmative action programs to restructure its multi-ethnic society by eradicating the economic imbalance between the Malays and the non-Malays. Malaysian \’state economic development corporations\’ were designed to break away from the bureaucratic binds of a regular government department and to become a commercially-oriented investment arm of the respective state governments.\”

Therefore, to Citizen Nades, I say that the convicted MB is absolutely wrong! He is probably more confused than clear about laws and principles of governance of Selangor, since he used such principles to argue his non-corruption logic but the \”friendly court\”, in spite of the AG\’s Chambers and the \”most lenient charge,\” still found Khir guilty of wrongdoing!

In fact, another search on the Internet produced the following state enactments to create the SECDs:

  • Johor State Economic Development Corporation – Johore Enactment No1/1968
  • Kelantan State Development Corporation – Kelantan Enactment No10/1966
  • Malacca State Development Corporation – Malacca Enactment No 4/1971
  • Negri Sembilan State Development Corporation – N Sembilan Enactment No 4/1969
  • Pahang State Development Corporation -Pahang Enactment No 12/1967
  • Penang State Development Corporation – Penang Enactment 10/1971
  • Perak State Development Corporation – Perak Enactment No 3/1967
  • Perlis State Development Corporation -Perlis Enactment No.6/1967
  • Selangor State Development Corporation – Selangor Enactment No4/1964
  • Terengganu State Economic Development Corporation – Terengganu Enactment No 3/1965

I am not sure when the Sabah and Sarawak state governments created their own SEDCs, but I suspect they were all created by the same federal enactment that enables \”state agencies to legally conduct business in the state\”.

Further review on the Internet reveals some other interesting features. There are two kinds of legislative enactments for statutory and non-statutory \”agencies of the government, whether state or federal\”.

Untruthful statements

All these are \”state agencies enabled by laws\” and allowed for by the constitution of the nation-state. The non-statutory bodies are set up under either the Minister of Finance Act or the Companies Act, but with the government acting as the guarantor for the agency.

Now, allow me to revert to the lie being propagated by the crooked MB who is lying though his teeth. Citizen Nades should not take this established crook too seriously about his untruthful statements!

Was it not the same MB who declared that Selangor is a developed state? How can it be a developed state when the same MB\’s record and history of theft and cheating is now clear for all to see? Abdul Khalid Ibrahim is a saint in contrast!

In conclusion, PKNS is a state agency set up for the purpose of growing the bumiputera equity in Selangor. If it had focused on this agenda, there would be no issue of Malaysia not achieving the 30 percent equity in terms of corporate ownership.

The main problem was displacement of this agenda, when under the new Umno\’s Ketunanan Melayu agenda, stealing public properties and lands for the self-enrichment of Umno cronies became a legitimate agenda of the state; often spearheaded by the menteri besar himself!

Is that not what Tamrin Ghafar was also complaining about? May God bless Malaysia to get rid of thieves!