KUALA LUMPUR: The government must be prepared to make "hard decisions" on the Federal Land Development Authority (Felda) and the Armed Forces Fund Board (LTAT), says Transparency International Malaysia.
"If some people have to be removed the government must be decisive to take action," its president Dr Muhammad Mohan told the New Straits Times.
"If some subsidiaries are beyond salvaging the government must be prepared to force the agency to divest."
He was commenting on reports that Prime Minister Anwar Ibrahim has given Felda and LTAT two weeks to explain their shortcomings highlighted in the 2022 Auditor-General's Report.
Earlier this week, the auditor general flagged LTAT over its diminishing investment returns in two subsidiaries and its decision to pay dividends derived from non-cash profits to contributors.
The AG also found that LTAT had been recording a negative balance in its reserves since 2020.
The AG also raised concerns about Felda, which saw its net loss increase to RM1 billion in 2022, from 2021's RM545 million.
Mohan said the most important thing the government needed to do was to put the right people both on the board and in the management teams of Felda and LTAT.
He said in Felda's case, the company has clarified that it recorded operational profits and that its losses were due to other factors unrelated to abuse of power, corruption, or poor governance.
"There are many plantation turnaround experts in Malaysia and they can be roped in to help the company."
He said the government cannot afford to continue injecting funds into loss-making federal bodies like Felda and LTAT.
"Ultimately it (government funds) is taxpayers' money.