By Parliamentary Opposition Leader, DAP Secretary-General and MP for Kota Melaka, Lim Kit Siang, in Malacca on Wednesday, June25, 1986.
Call on Daim Zainuddin to release the full list of shares bought by public institutional funds, and whether it is not true that the bulk were purchase of shares of companies connected with well-known political leaders in Barisan Nasional.
The Finance Minister Daim Zainuddin, obliquely answer a question. I had been posing for the past few weeks- the existence of a high-powered and highly secretive Investment Co-ordinating Committee at the Ministry of Finance which used public institutional funds running into hundreds of millions of dollars to buy stocks and shares.
Daim Zainuddin said the Cabinet decided to use public institutional funds to prop up the stock market at the request of ’captains of industry’ but the whole operation met with disaster following the Pan E1 crash.
It has been reported that EPF. SOCSO, Bank Simpanan Nasional, were among the public institutions which had to contribute money to this investment Co-ordinating Committee to carry out the operation to prop up shares prices.
The first question that needs to be answered is the property of using public institutional funds to prop up the shares market. As many government leaders are connected with a number of share counter, what is there to ensure the benefit for specific counters and therefore particular Barisan Nasional leaders?
I call on the DAIM Zainuddin to make public the full list of shares bought by the Investment Co-ordinating Committee with public institutional funds before the Pan E1 Crisis, for a study to be made as to whether there had been any conflict of interest in this operation. This is because I have received information that the bulk of the purchase of shares with public institutional funds were for companies associated with well-known political leaders in the Barisan Nasional.
Secondly, why was the EPF funds used for such a massive operation without the knowledge, consent or authority of the EPF Board, Are EPF funds meant for the benefit of the workers, to be invested to yield the highest dividends, or meant as a ‘captive funds’ which could not be used by the Government to ; play’ the stock market.
Thirdly, is it true that the EPF had forked out about $100 million to the Investment Co-ordinated Committee for such stock market operations?
Fourthly, is the latest rally of the stock market related to a fresh injection of public institutional funds in the stock market, and if so, how much money from the EPF had been utilised for this purpose?
Fifthly, isn’t it true that the use of the EPF funds for the operation to prop up the stock market by the Investments in the stock market, and that for 1985, EPF lost about $100 million from such stock market operation?
Why don’t the Government sack the chief executives and directors of a successful government companies and statutory bodies?
Yesterday, the Finance Minister made the stirring all that Chief Executive of unsuccessful government companies and statutory bodies should resign, as they should feel embarresed enough for failing to fulfil their duties and responsibilities. I fully agree and endorse Daim Zainnuddin’s sentiment and call. But nobody expects such high personal standards of public service unless government Ministers and leaders set the example. No Minister had felt embarrassed and ashamed enough over the government’s failure as seen in the multiple scandals rocking the country to resign so far. In any event, why don’t the Government sack the chief executives and directors of unsuccessful government companies and statutory bodies instead of waiting for them to resign instead?