KUALA LUMPUR (Feb 12): Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim acted today to tighten his grip over the management of State Development Corporation (PKNS) after being informed that there were abuses of PKNS funds.

Khalid said this in a statement issued after chairing the state Executive Council meeting, which was earlier briefed by PKNS general manager Azlan Alfiah on the financial management of PKNS in the past six years.

“In principle, we find that there are issues involving ethics and the expenditure of funds that need to be improved.

“In addition, we were informed there was investigation by the Anti-Corruption Commission (MACC) against the alleged abuses of funds for the football team that is still pending.”

Khalid added: “To ensure the principles of accountability and transparency are adhered to, I have directed the Honourable Iskandar Samad, YB Datuk Teng Chang Khim and YB Rodziah Ismail to monitor expenditure of funds by PKNS.”

Elaborating, he said the monitoring would cover expenditure of funds for the football team at RM9 million per year, development fund of RM5 million and allocation for corporate social responsibility work of RM30 million.

“We will monitor developments in PKNS carefully to ensure that resources are managed in a professional manner to provide the maximum benefit to the people.”

The MACC-probe revelation today shows that Selangor PKNS’ saga will not end soon following the ouster of PKR’s deputy president Azmin Ali from the board of PKNS.

Last week, the state-owned investment company terminated the contracts of 30 employees, giving them two months' severance pay.

Khalid has defended the move saying it was done according to terms of the contracts and added it would save PKNS RM7 million annually.

Azmin, who has been at odds with Khalid for years, called the sacking illegal and inhumane.

Amid all these happenings at PKNS, PKR de-facto leader Datuk Seri Anwar Ibrahim has announced he is contesting in the coming by-election in Kajang.

Most political analysts believe Khalid will be replaced as Selangor Menteri Besar if Anwar, a much more politically savvy leader, wins the by-election.

They believe Anwar will be able to put a stop to the current spate of religious and racial intolerance in the state, which have caused unwarranted inter-ethic tension in the country.

Anwar’s control over the state government may also reduce the political bickering in Selangor.