‘Reforms to ensure PM doesn’t hold finance portfolio’

KUALA LUMPUR: Reforms are necessary to ensure the prime minister does not hold the finance minister’s portfolio to avoid a conflict of interest and a repeat of the 1Malaysia Development Bhd (1MDB) scandal.

The move by Prime Minister Tun Dr Mahathir Mohamad not to hold the finance portfolio but give it to Lim Guan Eng has gone down well with the people, former finance minister Tun Daim Zainuddin said on Sunday.

“This is because it would allow for checks and balances, and prevent an abuse of the country’s economic and financial management. That is why we need reforms to this end.

“If any future leader tries to change this, the people would object,” said Daim.

When a prime minister also becomes the finance minister, “there are no checks and balances, he does as he likes and nobody is going to challenge him,” he said in reference to the previous administration under Datuk Seri Najib Razak, who was both prime minister and finance minister.

“That is why we say, separate this post (as) it is a very important post, so there is no conflict of interest,” said Daim, who is also chairman of the Council of Eminent Persons.

He said most developed and developing countries did not have this (prime minister holding the finance portfolio), adding that “it’s very, very rare, Malaysia is the exception, perhaps with one or two other countries”.

Dr Mahathir had said that the roles of prime minister and finance minister should be separated to avoid a repeat of the 1MDB scandal.

Daim said: “We must have a strong cabinet that is able to criticise the minister of finance because if he is the PM-cum-finance minister, nobody is going to do that (criticise him).

“That is what happened under the previous administration, leading to the 1MDB financial scandal, and that’s only one. There are more mini 1MDBs and some as big as 1MDB.”