Directors of government-owned entities may face surcharges, lawsuits over public fund losses

Directors of government-owned entities could face civil action if they breach fiduciary duties or fail to exercise reasonable care in managing public funds.

KUALA LUMPUR: Directors and senior management of government-owned entities may face financial surcharges or civil lawsuits if found responsible for losses involving public funds and assets due to negligence, mismanagement or breaches of duty.

Deputy Finance Minister Liew Chin Tong said existing legislation provides mechanisms to hold those responsible for such losses accountable, including the Statutory Bodies (Discipline and Surcharge) Act 2000 and the Companies Act 2016.

“For statutory bodies, the Statutory Bodies (Discipline and Surcharge) Act 2000 allows disciplinary action and financial recovery measures to be taken against officers, including directors-general, who are responsible for the loss of funds or assets due to negligence or failure to comply with procedures.