Warisan calls for Cabinet White Paper on underperforming GLCs

Borneo Post

26-05-2025

Loretto
KOTA KINABALU (May 26): Parti Warisan has called for greater transparency and accountability in the management of government-linked companies (GLCs) and state agencies in Sabah, proposing the tabling of a Cabinet White Paper in the State Legislative Assembly if given the mandate to govern.
Warisan Secretary-General Datuk Loretto Padua Jr. said the party is aware of growing discussions among stakeholders regarding the underperformance of Sabah's GLCs, which have failed to meet the objectives for which they were established.
'We welcome any effort to improve and enhance the performance of GLCs in Sabah because they have a responsibility to assist the State Government. This includes contributing through annual dividend payments and helping stimulate economic activities in the state,' he said in a statement today.
However, he stressed that meaningful reform must begin with transparency.
'Before any form of empowerment is introduced, the government should issue a Cabinet White Paper on underperforming GLCs and problematic state agencies, and table it at the State Legislative Assembly,' he said.
Loretto explained that such a move would allow the people of Sabah including NGOs, students, academics, economists, business associations and the general public to understand the real reasons behind the failures of these entities, and the corrective measures that will be taken.
'Transparency is important because the best watchdogs in this state are the people of Sabah themselves not those appointed by the Chief Minister from the ruling party or coalition,' he added.
He also said that the presentation of a White Paper would demonstrate the government's genuine commitment to reform, aligning with the findings of the National Audit Department as highlighted in the annual Sabah Audit Report.
'It must not be a matter of issuing statement after statement to cover up poor governance,' said Loretto.
He further called for the National Audit Committee to investigate troubled GLCs to prevent ongoing financial leakages.
'Given the current economic challenges, the government must practise prudent spending, and all unnecessary overseas trips should be stopped immediately.'
Loretto outlined that if Warisan returns to power, it would table the Cabinet White Paper within six months, covering key issues including: · RM5 billion in non-performing loans borne by Sabah Development Bank (SDB) and the existence of 'creative accounting' practices; · The cancellation of land concessions previously held by Sabah Forest Industries (SFI), now awarded to three Peninsular Malaysia-based companies; · The worsening water and electricity supply crises in Sabah, including alleged overcharging by water lorry contractors; · The RM1.2 billion debt bailout of Sabah International Petroleum (SIP) through the issuance of RM900 million Sukuk Wakalah by SMJ Energy Sdn. Bhd.; and
· Other matters raised by Warisan and the opposition that remain unanswered by the current GRS/PH administration.