This media statement is made in response to the Shah Alam High Court verbal decision made on 31st March 2017 to dismiss the claim instituted by Menteri Besar Selangor (Pemerbadanan) (“MBI”) against its former Chief Executive Officer, Faekah Bt Husin and seven former employees of MBI for payments made without the full knowledge, approval and authority of MBI’s board of directors and, for amongst others, breach of fiduciary duties on the part of the former employees.
The decision of the former Menteri Besar Selangor in granting a purported voluntary separation scheme payout to these former eight employees totalling RM2.7 million on his last day of office without obtaining the board of directors’ approval goes against the principles upheld by the management of MBI
The implementation of several measures, including the constitution of a board of directors and internal guidelines are necessary and crucial for the integrity, accountability and transparency of MBI. As such, all the relevant internal guidelines or procedures duly approved by the MBI board of directors consisting of the former Menteri Besar Selangor should be condoned by every board member for all the employees to comply and not to be waived by the exercise of discretionary power for the purpose of fulfilling the interest of certain quarters especially those who have direct relationship with the public official such as his adviser, assistant, friend or relative.
It is to be stressed while the court said that it is only bound to interpret the law as it is, and not what it should be, the learned Judge also observed that “unfettered exercise of power or discretion by any public official in this era is considered as jurassic and archaic.” We wholeheartedly agree with that observation and wish to add that it is the position of MBI that the actions taken by the former Menteri Besar in facilitating the former employees of MBI for financial gains is wrong by accepted ethical standards. In this regard, any claims by the former Menteri Besar of gaining a moral victory is completely unfounded.
In the meantime, MBI abides by the decision and has instructed its solicitors to peruse and analyse the written judgment of the High Court once made available, and if necessary, will file an appeal to the Court of Appeal. MBI reserves its rights to exhaust all legal remedies under the law.