Lee Khai Loon (PH-Machang Bubok) said the creation of these GLCs would lead to the bloating of the civil service in the state.
“We have 17 GLCs in the state and their functions clash with those of the state civil service.
“Why can’t the state civil service implement the state government’s projects?” asked Lee while debating on an amendment to the CMI Enactment (2009) in the state assembly.
He also called for the creation of a house select committee that would oversee the operations of the state GLCs to provide a check-and-balance mechanism.
Several other assemblymen also raised issues on the management of GLCs in the state, with a sharp focus on the Chief Minister Incorporated (CMI), a state-run company with full powers vested in the chief minister.
Gooi Hsiao Leung (PH-Bukit Tengah) called for the CMI to show its own accounts for greater transparency.
“CMI covers many portfolios — like housing, education, Islamic affairs and agriculture, and has many assets.
“They need to be managed in a transparent manner so that we can avoid a 1MDB-like scandal in our own backyard,” Gooi said.
Currently, all revenue collected by the CMI goes directly into the state’s consolidated fund.
Muhammad Faiz Fadzil (PH-Permatang Pasir) suggested that the CMI become a for-profit GLC that is financially sustainable and is no longer dependent on Penang taxpayers.
“It should be giving money to the state.”
However, his suggestion invited an objection from Satees Muniandy (PH-Bagan Dalam) who expressed concern that this proposal would make all state-owned GLC into for-profit entities.
“For example, this would result in Penang Digital Library charging entrance fees to its visitors,” Satees said.
Chief minister Chow Kon Yeow, after hearing the suggestions from the backbenchers, said he agreed with the call for greater transparency on the management of state GLCs.
“I do not want to be a chief minister who makes decisions for the CMI solely.
“I would like to see the establishment of a management committee that provides transparent management of the CMI, in line with the institutional reforms outlined in Penang 2030.
“In addition, I would like to create a monitoring body that oversees all the GLCs in the state,” he added.
He also explained that all state-owned GLCs in the state functioned as non-profit entities.
The state assembly then voted to pass the amendment on Chief Minister Incorporated (CMI) Enactment (2009), which would improve the appointment of board members and financial management of the CMI.
The state assembly was adjourned sine die.