Trevor…Sabahans especially the young generation, deserve a better future with opportunities, not a legacy of mismanaged GLCs. “
TUARAN : – Parti Kerjasama Anak Negeri (ANAK NEGERI) today call for a comprehensive re-audit and institutional overhaul of all State Government-Linked Companies (GLCs).
Trevor Maringking, the party’s secretary general made this call in light of a recent controversy of a viral photo allegedly involving the executives of a state GLC.
Also following reported legal action involving Sabah Development Bank (SDB) against audit giant Ernst & Young (EY) for alleged professional negligence in its audit work between 2017 to 2022.
The unfolding SDB-EY lawsuit, highlighting possible major financial mismanagement and audit failures, serves as a stark warning of deeper governance rot within Sabah’s GLC ecosystem — a rot that continues to deny the younger generation of future opportunities.
Citing a statement by State Finance Minister Datuk Masidi Manjun earlier this year, ANAK NEGERI points to the alarming revelations that Sabah have over 200 State GLCs, but less than 10% of them have returned dividends to the state — a massive underperformance that deprives the people, especially the youth, of crucial public investments in infrastructure, jobs and future development.
Incidentally, the Sabah Audit Department when presenting the Auditor General’s Report earlier this month had remarked that many state GLCs failed to meet their core objectives where issues included the absence of strategic plans and key performance indicators, incomplete standard operating procedures and boards lacking competence or formal appointment terms.
Furthermore, it was also reported that internal audit units and audit committees were often not established, while joint ventures failed to generate returns with the most worrying aspect several projects were completed but never used, loans went unpaid, and many companies recorded sustained losses while failing to return dividends to the State.
“Sabahans especially the young generation, deserve a better future with opportunities, not a legacy of mismanaged GLCs. “
“Every cent of public money trapped in underperforming state companies is a lost chance to invest in infrastructure projects, youth employment, better services, and local empowerment,” said Trevor, who is also chief coordinator for Tuaran .
ANAK NEGERI highlights five key reasons why Sabah must act boldly for an institutional reform of the State GLCs:
1.Expose Hidden Failures and Liabilities:
If major auditors allegedly failed to spot serious financial irregularities in SDB during the stated period, what other hidden risks lie within other state GLCs? A fresh, independent audit may reveal the true state of Sabah’s assets, including dormant projects and potential financial timebombs.
2.Fix Governance Before It’s Too Late:
Poor governance means fewer job prospects for Sabah youths of today and tomorrow and therefore revamping governance, strengthening oversight, and modernizing GLC management are non-negotiable reforms.
3.Ensure Compliance and Global Standards:
Sabah’s GLCs must meet international reporting standards and operate with the professionalism expected in the modern economy especially in a digital age where youth-led innovation can thrive only in transparent environments.
4.Rebuild Public Trust with Action, Not Words:
GLCs manage millions in public funds. Sabahans, especially the young generation, don’t want mere talk but want only bold, transparent actions — like a state-wide GLC re-audit — to restore faith in public institutions.
5.Align Sabah with National Reforms:
At the Federal level, the National Audit Department has already indicated its intention to audit nearly 2,000 GLCs due to continuous governance misconducts, reinforcing the critical need for this proactive measure at the state level. Sabah should mirror these proactive reforms to empower its economy and ensure state resources work for the people.
This call aligns with recent amendments to the Audit Act 1957, empowering the National Audit Department to conduct thorough audits of GLCs, especially those backed by government guarantees. Sabah must show the same political will, or risk continued wastage of public funds.
“If the government doesn’t fix these GLCs, the youth of today will inherit the debt, not the benefits. That is unacceptable. This is public money, Sabah’s children’s future — and the people demand accountability now,” Trevor stressed.
