REFORMING the country’s political financing system is a must, as even Pakatan Harapan members sitting on the boards of government-linked companies might find the benefits tempting, said political economist Dr Edmund Terence Gomez.

The Universiti Malaya economics professor said the current set-up of GLCs may prove too enticing to cash-hungry parties.

“I would argue that politicians sit on the board of directors because they get a director’s fee,” he told attendees at the launch of the Malaysia GLC Monitor 2018 Report at the university today.

“And, I would argue that the director’s fee goes into the political party’s coffers to pay for the latter’s expenses, to pay the staff. They’ve got to get money from somewhere.

“For political parties formerly in the opposition, it was very hard to get financing, and this seems to be an avenue.

“Of course, PH parties would say this is not true. They would say, it’s not much.

“Fine, show me. I have my doubts. I don’t know what you say is true. Show me the figures.”

As such, Gomez said, there was an urgent need for political financing reform.

He said now that PH had federal power, it should form a parliamentary select committee on political financing, adding that the committee should be headed by the opposition.

Political financing reform did not get far under the previous Barisan Nasional administration.

In August 2016, a consultative committee on political financing, comprising representatives from civil society and the government, recommended the Political Donation and Expenditure Act.

The act called for the empowerment of a board of “trusted figures”, with no active politicians, to monitor political funding.

In October the same year, the National Consultative Council on Political Funding (NCCPF) submitted a report, containing 32 recommendations, to the cabinet.

A proposed bill on political donations and expenditure was also submitted to the Attorney-General’s Chambers, but it was not tabled in Parliament before the 14th general election.

NCCPF has forwarded its recommendations to the Institutional Reforms Committee, set up by Prime Minister Dr Mahathir Mohamad after PH won Putrajaya.

Recently, civil society group G25 proposed a Political Parties Act to provide balanced access to public funding for all parties and election candidates, and regulate private funding in politics.

Gomez said he was concerned about the centralisation of state-owned GLCs, especially in Selangor and Penang.

He questioned if politicians should be made directors of companies, and cautioned against the consolidation of economic power in the executive, which could open the door to unchecked political power. – August 28, 2018.