KUALA LUMPUR, Oct 8 — The Ministry of Finance (MOF) is finalising a proposal to enact the Statutory Bodies and Controlled Entities (Financial Governance) Act to strengthen the governance of government-owned companies.
The ministry said the proposal is expected to impose stricter procedures for the establishment of new companies, strengthen mechanisms for approving investments and loans, and increase the accountability of boards of directors and management.
“The Act aims to ensure that corporate decisions are made prudently, transparently and responsibly,” it said.
MOF said this in a written reply to a question from Azli Yusof (PH-Shah Alam) on measures taken to improve governance following audit reports on leakages of public funds.
