ALOR STAR: Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor is standing firm on his "no bailout" policy for troubled state-owned companies, stressing that he is not going to emulate the practises of the previous administration.
In confirming that financially troubled Kedah Agro Holdings Bhd had ceased operations, he said any uncompetitive state-owned companies would have to go.
"The state government must not bail out (state-owned) companies. It is the practice of the previous administration.
"We will not be doing any bailouts. Those that are uncompetitive will have to shut down, that's my policy.
"There is nothing wrong with that, right? Between two million Kedahans and several people, which is more important?" he said in response to the termination letters issued to some Kedah Agro Holdings employees.
According to the letter, which has gone viral since early this month, the board of directors, in a special meeting on Mar 17, had decided to terminate the services of its employees effective March 31.
According to the letter, the company would be paying the employees' dues and other benefits stipulated under the law.
The state government owned Kedah Agro Holdings through Menteri Besar Incorporated (MBI).
Commenting further, Sanusi confirmed that Kedah Agro Holdings had failed to service its mounting debts and acknowledged that the company should have ceased operating much earlier.
"It has ceased operations, and as I have said before, it should have been done much earlier. This is nothing new.
"It has ceased operating instead of being shut down, because it still has assets, liabilities and outstanding loans. The remaining few employees will stay to manage the debts," he said.
Sanusi added that the debts accrued by Kedah Agro Holdings were substantial, but he did not know the exact figure.
"Too much, to the extent that it is not capable of operating anymore," he said.
Sanusi was met after accompanying 41 orphans from Rumah Anak Yatim Budi Yan and underprivileged children shopping for Hari Raya clothes in Pekan Rabu here today.
The programme was organised and funded by Telekom Malaysia (TM) through its social foundation arm, Yayasan TM, under its Cahaya Ramadan programme.
For this year, Yayasan TM has allocated RM320,000 to bring the Aidilfitri cheer to some 3,000 beneficiaries nationwide, including the asnaf, orphans, B40 families, single mothers, persons with disabilities (PWD), tahfiz students and the Orang Asli.
On March 13, it was reported that a notice had been submitted to Kedah Agro Holdings to clear salary arrears of up to nine months.
The company had allegedly not paid its employees' salaries since last September, a violation of Section 19 of the Employment Act.
Human Resources Minister Steven Sim said Kedah Agro Holdings would pay around RM560,000 before Hari Raya Aidilfitri after the decision was made at the recent board of directors meeting.
