KOTA KINABALU: Sabah is currently implementing the Governance and Administration Improvement Plan for state public agencies.
State Finance Minister Datuk Seri Masidi Manjun said the implementation includes bringing in expert auditors to conduct audits and reviews on troubled companies.
"A thorough examination of financial statements will help state public agencies identify risks and determine whether to sustain or rehabilitate the businesses and activities conducted," he said during his winding-up speech for the state 2024 Budget at the state assembly sitting here.
Masidi said there would also be initiatives in assessing the qualification of the board of directors, implementation of a scorecard system, implementation of a Merit Demerit System, establishment of investment and loan management committee and collaborating with the Malaysian Anti-Corruption Commission (MACC).
He also said the state government stipulated that state government companies must pay at least 10 per cent of the company's profits to the state government as dividends.
"To ensure dividend payments from each GLC are executed, the state government will also enhance circulars regarding Dividend Payments and the Corporate Governance Code of Statutory Bodies.
"As previously mentioned, the state government will take action against GLCs experiencing losses.
"Therefore, I recommend that each GLC takes the initiative to improve the financial performance of the company to provide returns to the state government."