Sabah GLCs must uphold full transparency, accountability, says BIMP-EAGA Business Council chief

KOTA KINABALU (Jan 7): Accountability and transparency must form the foundational principles of governance for all government-linked companies (GLCs) in Sabah, not just selected entities like Invest Sabah Berhad, said BIMP-EAGA Business Council (Malaysia, Sabah) chairman Dr Raymond Alfred.

He stressed that as entities funded directly or indirectly by public money, every Sabah GLC carries a moral, democratic, and institutional obligation to publish its annual audited financial reports for public scrutiny.

“This responsibility is not optional. It is a fundamental requirement to ensure public resources are managed responsibly and in the best interests of the rakyat,” he said in a statement.

Dr Raymond emphasised that public funds do not belong to boards, management teams, or political appointees, but to the people of Sabah.

Consequently, every ringgit spent must be transparently accounted for and justified.

“Annual audit reports must be completed on time, independently verified, and made accessible to the public.

“This enables Sabahans to assess a GLC’s performance, efficiency and impact,” he explained, adding that such transparency is crucial to building public trust and strengthening Sabah’s institutional credibility with investors, development partners, and civil society.

He further noted that annual public financial disclosure is non-negotiable, particularly when tens of millions of ringgit are involved.

“The rakyat have an absolute right to know how that money is used,” he said.

“Required disclosures must include audited income and expenditure, salary and allowance structures, travel and consultancy costs, promotion and operational expenses, and measurable outcomes linked to spending.”

Describing financial transparency as the first line of defence against mismanagement, wastage, and abuse of power, Dr Raymond argued that continued existence of every GLC must be justified on performance-based outcomes.

“Each GLC must be able to answer key questions annually: what value was delivered per ringgit spent; how many real and sustainable jobs were created; how many investments progressed beyond announcements and memoranda into actual execution; and what tangible benefits reached Sabahans, especially small and medium-sized enterprises (SMEs), rural communities, and priority districts,” he outlined.

He added that if such outcomes cannot be clearly measured, publicly explained, and defended, then the GLC concerned should be restructured, merged or dissolved in the interest of the state and its people.

Dr Raymond also set a precondition for leadership appointments, stressing that no new chairman or board member should be appointed to any Sabah GLC unless its latest audited financial reports have been completed and publicly disclosed.

“Leadership appointments must be based strictly on credibility, professional competence, integrity and proven experience, not as a mechanism to distribute positions, political rewards or personal benefits,” he said, underscoring that GLCs exist to serve Sabah’s development objectives, not as vehicles for patronage.

He concluded by reiterating that full accountability to the rakyat is integral to transparent and responsible governance.

“Sabah’s development, investor confidence and public trust depend on strong institutions that are open, accountable and performance-driven.

“Transparency is not a political issue — it is a governance obligation. Without it, the legitimacy and continuation of any GLC in Sabah cannot be justified,” he said.