COVID-19 pandemic, public funds mismanagement and corruption have driven some countries into severe external debts that they were unable to recover from and this saw massive public riots that had driven the politicians involved out of their country. One such example is Sri Lanka where the President of the country had fled the country and the country is in a major riot. Image source: BBC
Whenever the Government announces huge bailouts, 2 things are certain on everyone’s mind:-
ONE: It does not matter if it is cash, guarantee or promises on paper, one way or another, at the end of the day, taxpayers will be forced to bear the cost of the bailout. Taxpayers money that could have been used more productively for development of the country now goes down the drain.
TWO: Not all of the board of directors, management and senior officers who mismanaged the company will be arrested, stripped naked of their assets and sent to jail for years. At the most, some of them may be asked to tender their resignation without any punishment and some of them will be transferred to another GLC. And since there is no severe punishment given, the incompetence and mismanagement continues.
Image source: The Edge (Billions lost in Felda, hundreds of millions of asset value vanished in Tabung Haji)