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Why not take a loan? State govt won’t settle Kedah Agro’s unpaid wages, says Sanusi | Scoop
Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor has said taxpayer funds cannot be used to cover company salaries unrelated to government expenditure. – Alif Omar/Scoop pic, March 24, 2024
News

Why not take a loan? State govt won’t settle Kedah Agro’s unpaid wages, says Sanusi

Menteri besar says MBI Kedah unit no longer a GLC, but a ‘leech’

Scoop Reporters
Updated
11:15 AM MYT

 

KUALA LUMPUR – Datuk Seri Muhammad Sanusi Md Nor stressed that the state government would not pay the salary arrears of 24 employees of Kedah Agro Holdings Bhd.

Instead, he suggested that the subsidiary of MBI Kedah should apply for a loan.

The Kedah menteri besar, however, said the loan would not be given easily as several factors would be scrutinised, including the terms of repayment. 

He explained that taxpayer funds could not be allocated to cover company salaries unrelated to government expenditure.

“Never since the establishment of Kedah Agro has the government directly paid salaries. What can be done is that Kedah Agro could take a government loan. Until the memorandum was sent, what were they (Kedah Agro) doing? 

“I will remain stern. If I were to help these 24 individuals, I would be betraying the people of Kedah,” he said yesterday.

Recently, it was reported that 24 employees of Kedah Agro were facing issues with their salaries.

This issue garnered the attention of Human Resources Minister Steven Sim, who said that the Labour Department had issued a notice to the company in January. 

He added that the investigation revealed the company’s failure to pay employee salaries since September of the previous year, constituting a violation of Section 19 of the Employment Act 1955.

Why defend a leech?

Commenting further, Sanusi said that Kedah Agro, a subsidiary of the state government, was supposed to generate its own income through the implementation of government projects and subsequently contribute back to the government.

He added that Kedah Agro was mentioned in the 2017 Auditor-General’s Report for its problematic operations, particularly during the Umno administration in Kedah.

“If 30 people are seated in the GLC, never contributing to anything but only depleting resources, it is no longer a GLC; it is a leech. I’m not inclined to defend such a leech,” he said. – March 24, 2024

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