Wednesday, May 19, 2010

Sime Darby Fiasco & Accountability

Sime Darby, the biggest plantation group in Malaysia, had registered a huge amount cost overruns. Last Tuesday, Sime Darby’s president and group chief executive Ahmad Zubir Murshid was asked by the board to take a leave of absence prior to the expiry of his contract in Nov 26, 2010.

This follows the discovery of RM964 million in cost overruns from four energy and utilities projects, including the Bakun dam project, racked up by the company during his tenure.

Subsequently, Sime Darby chairman Musa Hitam said he will resign if necessary following the conglomerate’s huge losses of nearly RM1 billion for this quarter arising from cost overruns in four projects.

“Resignation is no big deal... When I have made my own assessment, if necessary. Yes, I am prepared. Needs to be sacked? Yes. Needs to be suspended? Yes. The whole board or anything,” he said in response to concerns about the board of directors’ failure in supervision.

If Musa and his board members leave, it will set a new precedent for accountability in Malaysia. Not only executives in GLCs have to be accountable for their performance, the same standards must be adopted by other professionals, politicians and policy makers too.

However, no stones should be left unturned to find out why the conglomerate had recorded such huge cost overruns. Action must be taken against any irresponsible or unscrupulous attempts to put the conglomerate under tremendous financial stress.

We want all GLCs to publish disclosures at least twice yearly to ensure that their operations are sound and well managed.

Malaysia must start to take the quality of governance and leadership seriously if it does not want to continue the slide.

For now, PM Najib has to focus on delivery and not more rhetoric. Perhaps he should sack his current batch of advisers who had made him announced so many slogans and grand policies but with little results to show.

For 1Malaysia to work, there must also adherence to world-class governance standards. Not sweeping things under the carpet and keep defending the indefensible.

Now, can we have the IPCMC?

8 comments:

Das said...

At least Tun Musa has the guts to speak his mind on this issue....what about the others?! Collect salary and enjoy overseas trips to Disneyland, Las Vegas, and not to mention the "brand new" casinos in Singapore!!!! Now you know why Malaysia is still what it is today after 50 years of Independence?! What more can you expect the next 50 years, provided Malaysia is able to sustain thus far?! For all this, we have to thank the great Tun for his far sighted governce! Before the next 50 years is up the TWIN TOWERS will crumple!!!!GOD BLESS MALAYSIA!

Anonymous said...

.

since his premiere ship all he does is cling to the position doing everything he could just for that purpose.

what else can he do - nothing would probably be the right word.

.

Anonymous said...

Aiyah Khoo,why you still so niave leh? In Bolehland, only talk and talk.Tell me so many fiasco(s) in the last 30 years, any big fish get hauled up? Look what happened to Port Klang? Over time,burried and forgotten! Cerita sama lah....

Anonymous said...

You mean to say....
Just get suspended or sacked & that's it...???????????????????????

CITIZEN said...

The most practical solution is to change the govt in GE13. Then we can have all the changes that we want. Enough of the bullshits already!

Gong Tua Tai said...

Definite! WE MUST HAVE IPCMC! May the PM starts showing us some sincerity in giving us IPCMC!!! No more empty slogan.

Anonymous said...

No matter how great the company is, if i know that it was run by a bunch of unethical, greedy, corrupted so called executives, i will not give a second look. In Bolehland, one have to be very very careful indeed when investing in so those called “blue” chip companies esp GLCs ran by people with practically no experience and knowledge of what their companies are doing. These CEOs are nominated just because they have connections with the politicians. Many of them just let their companies slide and have no clue where they are heading. As long as their pockets are full $$$$$$$$$ who cares. At the end of the day, big daddy will eventually bail them out. Of course, with our poor rakyat hard earned money.
Sigh………..

Anonymous said...

Recently, Sime Darby celebrated their so called 100th anniversary. I still remember when the merger was taking place, and they were choosing a name for the new conglomerate, and the name Sime Darby was announced they said that it is the new Sime Darby. Now they are celebrating their 100th anniversary.Who are you trying to fool?????The current Sime Darby has got a new ROC number and therefore is fairly new and should not be celebrating their 100th anniversary yet.The old Sime Darby is now dormant. This calls to the question whether it was merger or takeover??????