Progress on governance matters – December 2016

In the recently held State Representatives Meeting in December, the General Director announced several initiatives that were taken in the area of improving governance within the organisation. We believe this is an important progress to tighten the overall system to prevent leakages in all forms.

This is based on ‘thus we heard’, as there were no hard copy of notes available, nor participants allowed any form of electronic recording. If there is any error or incomplete information, please help us to fill it in in our comment section.

The actions taken so far are:

  • Hiring of Crowe Horwath (said to be the 5th largest auditing firm in Malaysia) to conduct the external audit for the entire SGM’s accounts for 2016. This was done in May, 2016. For more information on this, you may read Progress so far .
  • The same firm has also been hired and conducted an asset audit on the art collection of SGM, worth RM27 million in book value.
  • Establishing a purchase department to introduce and implement a tighter procurement process in SGM.
  • Each state is also in the process of hiring an Accounts Executive to be responsible for state’s accounts. This will not involve small states, for example Terengganu and Kelantan, because the total amount of financial transaction are too small.
  • A task force was formed, consisting of professionals to look into the implementation of governance exercise. There is also an advisory team to overlook and guide the exercise.

We feel that SGM need to work faster to regain the confidence lost, which was indicated by the significant fall in the contribution amount and number of contributors. The memo on this exercise were issued by the General Director on April 1, 2016. A total of eight months have passed. SGM has yet to hire a fully qualified accountant, a chief executive to take away the huge administrative burden from the General Director and setting up of the internal audit committee. These are very basic building blocks that must be put in. And put in fast.

We, as leaders of SGM, must also maintain constant vigilant on this matter. Particularly when we have grown so large and become so rich. It is easy for us to simply leave things to others. If we slacken, devils will have opportunity to create problems for SGM.

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