ALOR STAR: Kedah Umno information chief Datuk Shaiful Hazizy Zainol Abidin has asked Menteri Besar Datuk Seri Muhammad Sanusi Md Nor to clarify his claims of alleged corporate mismanagement at state-owned Kedah Agro Holdings Bhd.
Shaiful said the allegations suggest that Menteri Besar Incorporated (MBI) has leeched profits from its subsidiary, Kedah Agro, while also employing Kedah Agro staff in MBI and appointing MBI cronies in top executive positions.
Shaiful said Sanusi, who is also MBI chairman, needs to explain the matter and challenged him to take those accusing him to court.
"Be brave if it's the truth, don't appear 'scared'. Do not play the role of the 'opposition' in this issue, you represent the state government, use the available legal channels," he said in a statement today.
A screenshot of an exchange between Sanusi and a Facebook user, Zuraini Ab Ghani, regarding Kedah Agro salary arrears and corporate mismanagement, recently went viral.
In the post, Zuraini, identified as a former Kedah Agro employee, lamented Sanusi's recent comments, labeling Kedah Agro employees as unproductive and mere 'leeches'.
Zuraini alleged that Kedah Agro was actually profitable and that both profits and employees were taken by MBI. She also claimed MBI appointed its cronies to top executive positions.
In response, Sanusi lashed out at Zuraini and threatened legal action against her claims.
However, Zuraini, when contacted, confirmed that she had not received a Letter of Demand (LOD) from the menteri besar yet.
Meanwhile, Shaiful urged Sanusi to stop claiming he doesn't want to clear Kedah Agro salary arrears as doing so would use public funds.
"Does Sanusi think the people are so stupid? Certainly, Kedah Agro is an MBI subsidiary, so MBI must find funds or financial structures to pay employee salaries.
"Who asked Sanusi to use public funds? Or is Sanusi accustomed to using public funds to pay state government linked companies (GLC)? Is that the only solution he can think of? As MBI chairman, Sanusi must think of ways to solve this salary issue within his capacity," he added.
He also stressed that people have never asked him to explain the Kedah Agro's profit-loss figures but to only ensure employee salaries are paid.
"In this issue, my advice for Sanusi: stop hiding from the real issue. Stop using the 2017 Auditor-General's report to avoid addressing the failure to pay salaries.
"Everyone knows Kedah Agro has issues, but why did the previous Barisan Nasional (BN) state government still strive to pay Kedah Agro employee salaries? Because every MB knows it's their responsibility, whether from Pas, Bersatu, or any other party, they all pay," he added.
On March 13, it was reported that a notice had been submitted in January to Kedah Agro to clear salary arrears of up to nine months.
It was alleged that Kedah Agro, a subsidiary of Kedah Menteri Besar Incorporated (MBI), had not paid its employees' salaries since last September, which is a violation of Section 19 of the Employment Act 1955.
Human Resource Minister Steven Sim said Kedah Agro would pay around RM560,000 before Hari Raya Aidilfitri after the decision was made at the company's board of directors meeting recently.
In response, Sanusi likened Kedah Agro to "leeches" for being unable to generate its own income.
Sanusi said the Auditor-General had cautioned Kedah Agro in 2016 after the previous BN state administration had then allowed MBI to cover part of Kedah Agro staff salaries.