Gerakan Selangor: Formation flawed, DEIG should be put on hold (24.8.15)

Selangor Gerakan State Chairman Dato’ David Ang Chin Tat pointed out that the Menteri Besar Selangor Incorporated (MBI)’s investment arm – Darul Ehsah Investment Group Bhd (DEIG) is flawed. He also criticized that DEIG is lack of professionalism and effectiveness, rendering the purpose of its establishment questionable.

It has been 3 months down the road since the launching of DEIG as announced by Selangor Menteri Besar Mohamed Azmin Ali. However, even the most basic formation of operation such as Board of Directors (BOD), paid-up capital and management team etc. is still out of order. How can Azmin convince the Selangor rakyat to believe in DEIG’s efficiency and professionalism?

Furthermore, looking at the loose structure of DEIG which lacks of transparency and accountability, public is doubtful about Azmin’s competency in managing the state’s assets worth billion of ringgit.

One of the most apparent examples was Azmin declared the launching of DEIG on 20 May 2015 before its official formation in 5 June 2015 as stated in the Companies Commission of Malaysia (CCM) record.

“How can a company be launched prior to being officially registered in CCM?”

David Ang also revealed that according to the DEIG official website, its current Board Of Directors consists of 5 members, which include Azmin himself, State Secretary Datuk Mohammed Khusrin Munawi, state financial officer Datuk Noordin Sulaiman, Selangor MBI CEO Raja Shahreen and COO Soffan Aminudin. However, based on the latest updated record from CCM, only Raja Shahreen and Soffan are directors of DEIG. This conflicting information is confusing.

“How can a company establish its own unauthorized BOD without the approval of CCM?”

Although Azmin repeatedly declared that DEIG is solely owned by MBI, the up-to-date record of CCM shows otherwise – DEIG is currently owned by the two directors mentioned above, each holding RM 1 share. Azmin’s declaration has got no official proof and the operation of DEIG is unfathomable.

“Other than that, the management team section of the DEIG official website contains a picture comprising of 15 people in which no name and details were given on their backgrounds. Worse still, the MB’s office even misinterpreted the RM 10 million authorized capitals as paid-up capitals and corrected it some hours later.

“Why would an investment group get confused about authorized capitals and paid-up capitals?”

Therefore, David Ang suggested the formation of DEIG and its operation should be put on hold in view of the tremendous negative comments raised by all parties. All DEIG activities should be stopped before they restructure the system and improve their professionalism in order to restore the public confidence. This at the same time would prevent reliving the history of the scandalous 1MDB case.