Wahid expected to quit after cold shoulder from Dr Mahathir

Updated 5 years ago · Published on 26 Jun 2018 7:00AM · 12 Comments

Abdul Wahid Omar defence of the Goods and Services Tax was not the issue, says sources, but rather his spending habits as PNB chief. – The Malaysian Insight file pic, June 26, 2018.

PERMODALAN Nasional Berhad chairman Abdul Wahid Omar is expected to resign soon after failing to secure an appointment to meet Prime Minister Dr Mahathir Mohamad to discuss his position in the government-linked company, a government source said.

The axe has been hanging over the former minister’s head because of his stout defence of the Goods and Services Tax during the 14thgeneral election campaign period. Senior Pakatan Harapan leaders and Council of Eminent Persons chairman Daim Zainuddin were not amused by the comments, seeing them as inappropriate given the position he held in the GLC.

He has also been criticised behind closed doors over governance issues at PNB.

Wahid has said he would vacate his position if asked to do so. And the absence of an appointment with Dr Mahathir is a significant and telling sign.  

“Dr Mahathir refused to see him,” the source told The Malaysian Insight.

Wahid had served as minister in the Prime Minister’s Department from 2013 to 2016. He was in charge of the Economic Planning Unit before he was replaced by Abdul Rahman Dahlan in the June 2016 cabinet reshuffle.

Just two days before polling day, Wahid said scrapping GST will leave the government with three options that could hurt the economy – raising income tax or introducing a new tax such as the capital gains tax; increasing the country’s fiscal deficit to 5% or reducing spending.

PH leaders believe that his late intervention was probably at the urging of Najib and his advisers, and felt that Wahid’s readiness to comply was troubling.

In a statement, Wahid had said he was ready to give up his post if he was asked to do so by the government, but there was no discussion about his position. He also said he was fine with continuing his service if the government wished. 

Last week, The Malaysian Insight reported that Putrajaya was going to axe more GLC and government-linked investment company chiefs, in a major purge of BN political appointees. 

They would either be removed, asked to resign or not have their contracts renewed by September 16.

In Wahid’s case, the source told The Malaysian Insight, the issue was no longer about his defence of GST, as some of his actions as PNB chief did not go well with the present government’s austerity drive.

Last July, Wahid was involved in the bidding of the vehicle registration number “PNB 1” with the Penang Road Transport Department. The price paid for the registration number for a PNB-owned motorcycle was RM173,800.

Wahid had said PNB bought 25 registration numbers for the use of the company, paying a total RM419,006.

He justified the money spent on the registration numbers by saying PNB’s RM40 billion fund was used to pay for them and not investors’ deposits.

PNB under Wahid had contributed huge sums to the public via Umno politicians, something never done by other agency chairmen, the source said.

Media reports said the contributions were PNB’s zakat payments.

Another source questioned Wahid’s use of bloggers, who were paid tens of thousands of ringgit a month, to defend PNB’s reputation even though the company had its own media and communications unit.

SRC International loan

Wahid was also an investment panel member at the Retirement Fund Inc (KWAP), which approved a RM4 billion loan to 1Malaysia Development Bhd subsidiary SRC International Sdn Bhd.

Part of the KWAP funds were allegedly channelled into Najib’s personal bank account. The case is now under investigation by the Malaysian Anti-Corruption Commission.

Wahid was appointed to the KWAP panel on May 1, 2008. His term was extended on March 1, 2010. At the time, he was president and chief executive officer of Maybank, a board member of Bursa Malaysia Bhd and Perbadanan Usahawan Nasional Berhad (PUNB).

The Malaysian Insight understands that the approval letters by the investment panel for the loan was signed in August 2011 and March 2012. Each was for the sum of RM2 billion.

 KWAP had defended the loan, stressing that the pension fund’s performance was never jeopardised because the loan was covered by the government.

“It might be covered, but it didn’t do the government any good. The guarantee protected KWAP but not the government,” the source said.

The KWAP loan to SRC International was also criticised by many, including the opposition-turned-government Pakatan Harapan because it was never clear what the money was for.

The loan caused an unnecessary debt for the government, they said.– June 26, 2018.

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Comments

  • " ...... PNB under Wahid had contributed huge sums to the public via Umno politicians,....." - Why? Didn't he know these politicians will ALWAYS take a cut.

    Posted 5 years ago by Malaysian First · Reply

  • Professional corporate managers should stay out of politics. Period. Being able to say "no or I'll quit" is part of that duty..

    Posted 5 years ago by Bigjoe Lam · Reply

  • Yes, do the honorable thing and quit although there is no honor among thieves.

    Posted 5 years ago by Savari CJ · Reply

  • You've been in well paid cushy jobs for too long. Time to retire to give others the same opportunity.

    Posted 5 years ago by Henry Mancini Jr · Reply

  • Wahid is talented and an effective corporate leader. I hope our Government will retain him in PNB.

    Posted 5 years ago by Chris Ng · Reply

    • this is PURE talent... and effective....

      "Last July, Wahid was involved in the bidding of the vehicle registration number "PNB 1" with the Penang Road Transport Department. The price paid for the registration number for a PNB-owned motorcycle was RM173,800."

      "Wahid had said PNB bought 25 registration numbers for the use of the company, paying a total RM419,006."

      Posted 5 years ago by Feast 2020 · Reply

  • Now Tawfik Ismail should know the insider story. He was defending Wahid, when talk of culling GLC heads.

    Posted 5 years ago by Awang Top · Reply

  • It is fine to remove and replace those “ political appointees “ who are not performing “ .

    However , lets not be the main and real reason for PH candidates ( who are eyeing for those GLC CEOs posts with market salary income higher than ministerial posts ) to find all kind of excuses and minor flaws in killing and replacing all existing GLC CEOs even if they have well proven their performance capabilities .

    All know that GLC CEOs are appointed by Government . Now that Najib who is the main “ instructor “ has gone , those professional performing GLC CEO shall be given chance to prove their cooperation with the new government , instead of all be axed across the board in a rush .

    Otherwise , it will tentamount to colonies approach for new government , and not placing the consideration who are a more suitable CEO who will perform a better job for the country .

    We hope the new government shall adopt democratic , rationale performance based approach for better fairness and justice .

    Posted 5 years ago by PK Lee · Reply

  • KIck his arse and ask him to quit PNB as soon as his contract expires in October 2018. He should also be sacked from his position in other agencies. Let him retire honourably!

    Posted 5 years ago by Peter Johnson · Reply

  • It is fine to remove and replace those “ political appointees “ who are not performing “ .

    However , lets not be the main and real reason for PH candidates ( who are eyeing for those GLC CEOs posts with market salary income higher than ministerial posts ) to find all kind of excuses and minor flaws in killing and replacing all existing GLC CEOs even if they have well proven their performance capabilities .

    All know that GLC CEOs are appointed by Government . Now that Najib who is the main “ instructor “ has gone , those professional performing GLC CEO shall be given chance to prove their cooperation with the new government , instead of all be axed across the board in a rush .

    Those professional performing GLC CEOs like Tan Sri Wahid shall be given chance to prove their cooperation with the new government .

    The new government shall not rush to apply cronies approach .

    It should uphold a democratic , open- minded , rationale performance based approach for better transparency , fairness and justice .

    Posted 5 years ago by PK Lee · Reply

  • It is fine to remove and replace those “ political appointees “ who are not performing “ .

    However , lets not be the main and real reason for PH candidates ( who are eyeing for those GLC CEOs posts with market salary income higher than ministerial posts ) to find all kind of excuses and minor flaws in killing and replacing all existing GLC CEOs even if they have well proven their performance capabilities .

    All know that GLC CEOs are appointed by Government . Now that Najib who is the main “ instructor “ has gone , those professional performing GLC CEO shall be given chance to prove their cooperation with the new government , instead of all be axed across the board in a rush .

    Those professional performing GLC CEOs like Tan Sri Wahid shall be given chance to prove their cooperation with the new government .

    The new government shall not rush to apply cronies approach .

    It should uphold a democratic , open- minded , rationale performance based approach for better transparency , fairness and justice .

    Posted 5 years ago by PK Lee · Reply

  • Mahathir not wanting to meet with Wahid is very damning indeed. Wahid should have retired when the going was good. Spending RM173,800 on a motorcycle license plate is not exactly smart. Only now, it looked even more stupid.

    Posted 5 years ago by Roger 5201 · Reply