GOVERNANCE IN REGULATORY BODIES

30th March 2017

PRESS STATEMENT BY:-

TAN SRI DATUK ROBERT PHANG MIOW SIN.

JUSTICE OF THE PEACE.

CHAIRMAN – SOCIAL CARE FOUNDATION

It was reported in The Sun of 29th March 2017 on page 5 that Tunku Aziz said enforcement agencies such as police, immigration, customs and the Inland Revenue Board have wide powers and prone to corruption. It is timely to point out that equally, regulatory agencies such as Suruhanjaya Perkhidmatan Air Negara (SPAN), SPAD, Securities Commission, JPJ,licensing agencies and other regulatory agencies are open to corruption and abuse.

Some of the chairmen and members of commissions, boards or committees of these agencies are helmed by politicians and ex politicians. This must not be the case. There must be a clear segregation between the lawmakers and the executive. Instead, the members of commissions, boards or committees of these agencies should be filled by professionals who are well versed in the respective industry coupled with the relevant skills and experience.

Should an ex politician who is well qualified helm a regulatory body, there must at least be a cooling off period before taking up the position. Nevertheless, ex politicians should not be sitting on such boards.

The front page of the Star on 30th March 2017 reported 13 officers from various

enforcement agencies were charged with bribery. This does not bode well with politicians or retired politicians along with members who have little knowledge, skills and experience to sit on the commissions, boards or committees of these agencies.

We should emulate the professionalism of BNM which is helmed by qualified professionals. BNM promotes and upholds good corporate governance in regulating the financial services industry. No one can even be appointed to sit on the board of a financial institution unless it is approved by BNM.

Regulators are the bastion of good governance in the industry or sector in which it

regulates. How can the regulator promotes good governance when itself does not practice?

Recently, there was a well reported case of MACC raid on the water utility body in Sabah. Is the state water regulator helmed by politicians and in turn the Sabah utility body helmed by other politicians? There is too much political intervention and participation in the water utility sector at the regulatory level as well as in the water utility bodies in both sides of the political divide.

It is time that the country works towards proper governance especially with the regulators. Regulators should regulate well and not have members of the regulatory bodies partake in projects in which they regulate. Regulators must promote transparency and accountability both in the industry or sector in which they regulate as well as within the regulatory bodies.

“HUMBLENESS IS A GOOD VIRTUE, ARROGANCE SHALL FALL AND THE MEEK WILL RULE THE WORLD”.

Tan Sri Datuk Robert Phang Miow Sin.

Justice of the Peace.