I READ with great concern about two separate announcements in the media today, related to Mara Corporation Sdn Bhd’s (MARA Corp) signing of a memorandum of understanding (MoU) with Lynas Malaysia Sdn Bhd, and Majlis Amanah Rakyat’s (Mara) subsequent statement.

Mara’s statement apparently highlighted that the signing of the MoU by Mara Corp was not authorised by Mara.

I do not want to go into any elaborated comment on the Lynas Project. What irks me is Mara’s action in issuing a statement which runs contrary to its own subsidiary (Mara Corp), reflecting badly on the corporate governance of both organisations.

In any normal organisation, the signing of an MoU or agreement would have to be pre-approved by the board of directors. The question is, did Mara Corp proceed without the board’s approval?

If it did, internal action should be taken and the matter should have been discussed and resolved internally instead of issuing a statement on the very same day.

However, if Mara Corp did go through due process to obtain its board’s approval, it would be worse for Mara to issue such premature statement as it is public knowledge that the director-general of Mara and another Mara Council representative are part of Mara Corp’s board of directors.

Regardless of the actual scenario, the action taken by Mara to “wash its dirty linen in public” does not bode well and leaves a bitter taste. I cannot help but feel that the action taken by Mara seems to be on a “defensive” stance perhaps due to the controversies surrounding Lynas created by certain politically motivated individuals.

Mara was formed to aid, train and guide Bumiputeras in the areas of business and industry. This approach it has taken creates a very bad perception of its own practices, which may raise questions about its own competencies and credibility to guide entrepreneurs in the areas of business and industry.

Again, this matter could have been sorted out internally and whatever the circumstance, both parties should have discussed and perhaps come out with a joint-statement, if need be. I believe Mara blundered with the statement and it should get its act together! – November 5, 2019.

* Julia M. reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.