SUNGAI PETANI: Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor has likened the subsidiary of Menteri Besar Incorporated (MBI), Kedah Agro Holdings Berhad (Kedah Agro), to leeches as it is unable to generate its own income.

Sanusi, who is also MBI chairman, said the Auditor-General had cautioned Kedah Agro for issues in 2016 after the previous state government of Barisan Nasional (BN) then allowed MBI to cover part of Kedah Agro staff salaries, a practice that is still ongoing.

"I have a clear policy as announced in 2020, that any state government linked company (GLC) unable to contribute to the government, leeching off our blood, will be suspended but not closed.

"The purpose of forming GLCs is for business, to secure government projects and return profits to the government. If there are 30 people working in it, sucking our blood, never contributing, but still draining, that's not a GLC. That's a leech, and I don't want to protect leeches," he said during an iftar event here yesterday.

On March 13, it was reported that a notice had been submitted in January to Kedah Agro to clear salary arrears of up to nine months.

It was alleged that Kedah Agro, a subsidiary of Kedah Menteri Besar Incorporated (MBI), had not paid its employees' salaries since last September, which is a violation of Section 19 of the Employment Act 1955.

Human Resource Minister Steven Sim said Kedah Agro would pay around RM560,000 in current and overdue salaries before Aidilfitri after the decision was made at the company's Board of Directors meeting recently.

Commenting further, Sanusi said the state government is considering providing a loan to Kedah Agro to settle the salary arrears of all 24 staff.

"Even if I want to lend, I need to see how they will repay, for how long, how much per month. I don't want to betray the trust of the people of Kedah just to help these 24 people. Government funds, taxpayers' money cannot be used to pay the salaries of companies not included in government expenditure.

"This is called governance, as they often say, when we do it, they get angry. Never since the establishment of Kedah Agro has the government paid salaries. The only thing the company can do is borrow government money. When there is an issue (salary arrears), I don't know, they send a memorandum (then we know), what have they been doing all this time?" he said.

Sanusi also questioned the work ethic of Kedah Agro staff who have been claimed to be working from home since August last year.

"That approach would not help the agriculture-based company generate income," he added.

https://www.nst.com.my/news/nation/2024/03/1029827/sanusi-kedah-agro-glcs-should-generate-own-income-not-leech-govt