(Sept 1): PKR lawmaker Rafizi Ramli today recommended that Darul Ehsan Investment Group (DEIG) operate like a statutory body to allow for better governance once the state investment arm is fully operational.

Rafizi said despite DEIG being set up as a private company, the move could provide checks and balances and discharge similar accountability and transparency as information could be made public.

"The issue is governance, it is incumbent upon PKR and the leadership of the state government to prove to the public that our governance is a lot better.

"That includes to constitute a very independent governance in the company, not just at the board level but also at the management and investment level," he said in a press conference at PKR headquarters today.

This comes following criticism over the setting up of DEIG, with some likening it to debt-ridden 1Malaysia Development Berhad (1MDB).

Former Selangor menteri besar Tan Sri Khalid Ibrahim had asked why DEIG was not under any state enactments and did not need to table its financial statements to the state assembly sitting, despite being responsible for the state's RM6.3 billion investment assets.

When asked if PKR supported DEIG, Rafizi replied, "Yes."

Rafizi added that he had forwarded the suggestion to Selangor Menteri Besar Mohamed Azmin Ali and assured that the state chief welcomed any suggestion to strengthen the administration.

"Hopefully, with benefit of hindsight, we put all this governance process ahead of DEIG becoming operational, it will make sure the checks and balances will be in place to allay the fears of the public," Rafizi said.

Azmin who had previously denied similarities between his brainchild and 1MDB said that DEIG would not have any impact on the state since the entity was only responsible for investment matters, while its policies would be decided by Menteri Besar Incorporated (MBI) and the state government.

He said the concept was similar to that practised by the federal government whereby the Finance Ministry’s MOF Incorporated was fully owned by the Finance Ministry but investments were handled by Khazanah Nasional Berhad.

DAP's Tony Pua had also defended DEIG, saying that there was nothing wrong with Selangor's attempt to consolidate its assets under a single special purpose vehicle.

Pua added however that Malaysians should be concerned about the setup of DEIG, not because it would be a 1MDB scandal, but to ensure the new entity had a proper governance structure to avoid the same fate as 1MDB. – The Malaysian Insider