• Pakatan Harapan will terminate PEMANDU and conduct a forensic audit of all of its activities

    Media Statement by Pakatan Harapan Manifesto and Policy Committee issued on the 5th of May, 2017

    Pakatan Harapan will terminate PEMANDU and conduct a forensic audit of all of its activities

    The Performance and Management Delivery Unit (PEMANDU) in the Prime Minister’s Department was launched by the Prime Minister with much hype in 2010. Since its creation, PEMANDU has commandeered much power and resources, spent a lot of money on publicity seeking events and took the lead in ‘spin doctoring’ many of the supposed achievements by the BN government. In reality, it has failed to deliver on its main KPI, failed to be accountable to parliament and the public and most recently, ensnared itself in possible conflict of interest situations. Upon winning GE14, Pakatan Harapan will abolish all government contracts with the newly formed PEMANDU Associates Sdn Bhd and initiate an extensive forensic audit into all of the activities of PEMANDU Corporation including disclosing the salaries of the directors of PEMANDU and all the salient financial terms payable to this private company. Instead of engaging expensive external consultants to direct the civil service, Pakatan Harapan will channel resources directly to the civil service to empower them to do their jobs professionally and to introduce reforms that will make the civil service more independent, transparent and effective.

    (i) Failure to meet its GNI per capita target for a high-income nation

    The key target outlined in the Economic Transformation Program (ETP) 2010 Roadmap Report was for Malaysia to reach a high income nation status of US$15,000 GNI per capita by 2020 (See Exhibit 1 below).


    Source: ETP Roadmap 2010, pg.9

    This target has been referred to in each of the ETP Annual Reports from 2011 to 2014 and also in the 2015 National Transformation Program Annual Report. But what is clear is that we are still very far from the US$15,000 GNI per capita target as show in Chart 1 below. In fact, Malaysia’s GNI per capita has increased by a mere US$490, from US$8636 in 2010 to US$9057 per capita in 2016, or a 4.9% in 6 years. (See Chart 1 below) Based on this statistic alone, PEMANDU has failed.

    Chart 1: GNI per capita current prices (US$) 2010 to 2016

    Source: GNI statistics are from the Department of Statistics, Exchange rate data is the World Bank data showing the average US$ to RM exchange rate for that year (Figures differ slightly from the World Bank GNI data calculated using the Atlas method)

    The issue has been previously highlighted by IDEAS Head of Research Ali Salman and raises questions as to whether Malaysia can reach the high-income nation target by 2020.[1]

    (ii)                Failure of Accountability

    In a piece in The Malaysian Insight, a PEMANDU executive stated the following: PEMANDU also reported to the EPU, the Prime Minister’s Department and was accountable to Parliament.[2] We are unsure as to what the executive’s understanding of parliamentary accountability is, but in his 6 years as a member of the cabinet, the CEO of PEMANDU, Idris Jala, never once appeared in parliament to answer any single parliamentary question that concerned PEMANDU. In fact, he never answered anything or said anything in parliament. Given that he was heading two programs – the ETP and the Government Transformation Program (GTP) – that is supposed to bring about transformational changes in the country, it is disgraceful that he found it unnecessary to answer any questions in the most important elected institution in the country. This is a massive failure from an accountability standpoint.

    In addition, even though PEMANDU published annual reports for the ETP and GTP and starting from 2015, the National Transformation Program (NTP), it di not table any of its reports in parliament nor distribute them to Members of Parliament. It does not table its own financial accounts in parliament nor tell parliament how much PEMANDU has spent for its various activities. And despite many public criticisms, it has not made known how much its staff gets paid, which according to some reports, is higher than the Prime Minister’s salary.[3]

    Furthermore, PEMANDU has the audacity to ask for RM10 million and RM15 million from the government to organize the Global Transformation Forum 2015 and 2017 respectively at the same time as it is preaching values of fiscal prudence on the part of the federal government.[4]

    While it uses the language of good corporate governance and transparency, PEMANDU does not apply any of these standards to itself.

    (iii)              Conflicts of Interest

    All of the staff of PEMANDU Corp, a 100% Ministry of Finance owned entity, has now been transferred to PEMANDU Associates Sdn Bhd, a private entity that is 50% owned by Idris Jala. Starting from 2017, PEMANDU Associates will sell its services to the government by placing its staff in key ministries to continue the NTP. At the same time, this new private entity will be free to sell its services to other government ministries, at home and abroad. Furthermore, since the beginning of 2017, Idris Jala has been occupying the position of the Chairman of Heineken Malaysia, a public listed company.

    The position of Idris Jala as the chairman of a publicly listed company and the president of a private company which is deeply embedded into the inner workings of the federal government via its work in the NTP, raises serious questions with regards to possible conflicts of interest.[5] Until today, he has not even attempted to explain these conflicts of interest.

    For these reasons and immediately upon winning GE14, Pakatan Harapan will terminate all existing contracts with PEMANDU Associates Sdn Bhd. We will initiate a forensic accounting investigation into all of the expenditure undertaken by PEMANDU Corp and BFR Institute, both of which are 100% MOF owned entities, including how much was paid to each and every celebrity speaker for the 2015 and 2017 Global Transformation Program. We will publicly disclose the salaries received by PEMANDU directors.

    Finally, rather than spending obscenely on external consultants, Pakatan Harapan will channel resources directly to the civil service to empower them to carry out its functions more independently and and professionally. Pakatan Harapan will also call upon respected retired civil servants to help us reform the civil service to its former glory days of integrity, transparency and effectiveness.

    Dr. Ong Kian Ming (DAP)

    Wong Chen (PKR)

    Dr Dzulkefly Ahmad (AMANAH)

    Dr Rais Hussin (PPBM)

    [1] http://www.ideas.org.my/news/press-statements/government-intervention-causing-malaysia-to-lose-competitive-edge-as-average-income-of-malaysians-drops-by-15-according-%E2%80%8B%E2%80%8B-to-latest-epu-figures/

    [2] https://www.themalaysianinsight.com/s/2430/

    [3] http://www.malaysiakini.com/news/149861

    [4] http://www.malaysiakini.com/news/377108

    [5] http://www.beritadaily.com/idris-position-in-pemandu-and-heineken-questionable-says-dap-man/

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