Tuesday, October 25, 2011

How Long Can We Continue This Charade

Indah Water suffered losses amounting to RM33.35m in 2009 according to the Auditor General's report, and yet their staff got a 1.5 to 2 months bonus during that year. Prasarana lost RM188.03m in 2009 and still gave 1.5 months bonus. So, my question is when will these wonderful employees NOT get any bonus? When they totally bankrupt the company? I shudder to think what will happen if both companies happen to MAKE MONEY ... do you then give out 6 months bonuses? Which management book actually prescribes such practices? Where is the incentive to outperform? It seems the only TRUE GUIDELINE or MOTTO for these firms is "Try not to lose toooo much money, OK boys".

The list goes on. Halal Development Corp lost RM14.57m. KTM lost RM92.6m. MIMOS lost RM5.3m. Yes, you guessed right ... it wasn't an easy guess ... they all paid between 2 to 3 months bonuses to staff. Gawd, I think they got more bonus cause they outperformed Prasarana and Indah Water??!!

The justifications for those bonus payments were to lessen the financial burden of employees, and/or they actually reached their KPIs (even though the companies overall made losses), and/or some of the firms are not profit oriented lah.

Is it only GLC employees that are shouldering the financial burden? Then is the government admitting that the real CPI is actually a lot higher than was actually reported? So, if the CPI continues to worsen, and it looks like it will, I guess all GLC employess can look forward to a guaranteed 2 months bonus again and again. Their worst fears would be if CPI stayed at ZERO for any given year - what an incentive scheme.

Profit Making Ones

There are profitable ones as well. Pembinaan BLT, Water Asset Management Company, Hotel Seri Malaysia, Sarawak Hidro, Sepang International Circuit, Cyberview, Malaysian Biotechnology Corp, UDA, Khazanah and Multimedia Development Corp ..... all did NOT pay any dividends to the government despite making profits, some even when profitable for the past few years.

Is this how we manage the Budget ... all outflows and write downs and no dividends back ... how to balance the books? You'd think we are closer to Greece, are we trying to be the sick man of Asia?

No one is trying to really hurt anyone here, we all know you cannot run this in your own household for too long, even if oil was gushing in your backyard. Accountability and transparency are NOT evil ideas. They are very basic for ANY country to produce efficiently, manufacture cost effectively, sell, recycle profits, reinvest profits, reinvest for future, save, live prudently within our means, minimal wastage, minimal leakages, ... for all that we need Accountability and Transparency.

The question is not "how long has this been going on", the scarier question is "how much longer can we continue this charade?".


Live Long MU Fan said...

Fully agreed.
We are giving out bonuses when the company is making losses. Guess who gets the most bonuses? The CEO and board of Directors, themselves!!!

And while our country's debt is increasing, we are still giving out money (we do NOT have) to UMNO contractors and businessmen...

No wonder lots of Malaysian businesses are disvesting their $$$ overseas

johan5150 said...

imagine if we do not give 'bonus'more losses through corruption.

VQ said...

Where is the accountability?
Why no CBT, if any?
WHO should ultimately be made responsible for this "mis-management"?

Government's coffers are not politicians or public servants' entitlements. It belongs to the Malaysian citizens for the well-being of the public in general.

Haul up the culprit!!!
Vote them out !!!

VQ said...

For years, we have not seen a single case of accountability.

Where is the accountability and responsibility for the mis-management? Haul up all the culprit...!

Government's coffers do not belong to politicians nor civil servants. There are Malaysian's wealth and resources for greater well-being of the population.

Haul up the culprit and vote them out !!!

It is so pathetic to read and hear the same old thing and then PAC's wayang kulit!!!

JL said...

The Financial Edge Daily highlighted the 'bad' examples of govt spending. I love the payment of rm56k for a pair of binoculars which retails at rm1900. I will also need to check with my friend who owns an IT shop about the % of markup for that rm11k paid for an Acer laptop plus colour printer. As far as I know a canon colour printer retails at rm500. Vote BN, anyone?

Digital said...

If you worked in MNC, if company making losses, you dont get bonus, no pay increment and sometime pay cut too. All employees accept the fate as this is their rice bowl and they work hard to improve company profits.
But for these GLCs whether profit or losses still got bonus and pay increment...what incentive to work hard? Nothing...so be lazy and still got bonus and pay increment!

Joan Doe said...

it will continue until BN loses GE13, end of the world at 2012 or our country goes bankrupt by 2020.

With all those phantom voters, BN will win GE13, and I happened to found a can of corn with an expiry date that says 12/12/2014 so the world is not going to end at 2012.

Bankruptcy is it.

Mohammed said...

With western economies in deep freeze and Malaysia being an export oriented economy, there will be no shortage of economic headwinds going forward.

Malaysia can ill afford leakages of such proportions and gross mismanagement of public finances. Already public debt is at an all-time high and is growing at an alarming rate. Soon Malaysia will be a basket case if nothing is done to right the wrongs.

We desperately need to TUKAR. For everyone's sake.

cmonmsia said...

even the most profitable company - petronas gives small bonuses to their staff

Kingsmen said...

made in america

duuude said...

pretty soon our debt will be 1 Trillion Ringgit

William Wang said...

There are angles to look at this bonus episode. There are many companies who pay 13 to 14 months salary for yearly work, irrespective of whether they make a profit. I had work in such company before(EAC). The main reason is to encourage the staff to stay for the year. You can say that their salaries are deducted & camouflaged as bonus.

emacro said...

I think that we shouldn't expect much less from the supposedly competent party that is running the country for 50+ years...

emacro said...

You hit the nail on the head! Move the management of these loss making GLCs onto Daihatsu Charade as their company car.