(K saw it on FB, shared with me, and I share it with you guys. The truth and nothing but the truth)
There are many reasons as to why the government constantly bails out the GLCs:
1) GLCs are fully controlled by UMNO;
2) They are convenient sources and means for money laundering, as they are corporate entities;
3) Being corporate entities, they can borrow money in the open market. Since their loans are fully guaranteed by the government, they can borrow huge amounts of money, both locally and from abroad, for which the government only needs to issue sovereign bonds (promissory notes or IOU notes to the lenders. This is where 1MDB, PNB, Khazanah Nasional, SEDCs, etc. get into the picture);
4) UMNO leaders will be appointed as Chairman and CEO of these GLCs, through whom UMNO controls the management of the GLCs, procurement, product/service pricing, etc.;
5) Procurement contracts are dished out through 'opaque negotiation processes' to UMNO bigwigs at highly inflated procurement prices (actual cost plus 500% is the norm);
6) The slush money received from these inflated procurement contracts are shared between UMNO and the party bigwigs, as this constitutes the bulwark of party finances;
7) UMNO (mis)uses the GLCs to build up its war chest, which will be used during elections;
8) The "Duit Raya", "Duit Ehsan" and "Duit Bantuan" that UMNO bigwigs freely dish out during Hari Raya and election campaigns come from the GLCs' inflated procurement contracts;
9) This is how UMNO goes about delivering its so-called "Malay Agenda", i.e. by privatsing (piratising?) the profits and socialising the losses.
That is why UMNO wants to be in power as the government, otherwise they cannot do all these.
For almost 2 years, there ran out of these slush funds when PH was in charge. That is why they bribed the "political frogs" in PH and "bought over" the government. The taxpayers, i.e. ordinary Joe Public, always lose both ways: heads I win, tails you lose.😃😣
Comments