THERE are growing concerns within the ruling Pakatan Harapan government and the business community on the seemingly overarching powers of the Council of Eminent Persons (CEP) led by former finance minister Daim Zainudddin, reports the Straits Times.

Just two days after the first cabinet was sworn in earlier this month, the ministers were assured by Prime Minister Dr Mahathir Mohamad that the advisory council he formed after the May 9 elections was tasked with making recommendations, not decisions.

This assurance reflected the growing concern over the implicit power of the five-man CEP – which has already effected important personnel changes in government – and the possibility of its influence extending beyond the 100-day lifespan, officials told the Singapore daily.

The CEP was formed shortly after the 14th general election to help stabilise a government of inexperienced leaders, but the extent of the cull of senior government officials and restructuring overseen by Daim has led to a pushback from PH leaders.

Daim, 80, said the dismissals were due indications of multiple criminal breaches of trust discovered based on his meetings with dozens of state institutions and government-linked companies.

Anxiety about the CEP has not been restricted to just the corridors of power in Putrajaya, as financial executives and risk consultants told the Straits Times that meetings with Daim and his team are as highly sought after as briefings from the Finance and Economic Affairs Ministries.

“The CEP reduces the cabinet’s role to some extent, raising the risk of policy confusion and concerns about parallel administrations. Investors want to avoid having two finance ministers and have clarity over who is calling the shots,” said Eurasia Group’s Asia director Peter Mumford.

Daim has also been battling with the Treasury, contesting decisions over mega-projects and GLCs, including sovereign wealth fund Khazanah Nasional, said the report.

There is speculation that Khazanah’s top management has been asked to step down by the CEP, and sources say similar requests have reached other GLC captains.

One official said “there is even a cabinet paper on moving Khazanah to the Prime Minister’s Office waiting to be discussed’.

Despite the fact that Daim is known as a loyalist to Dr Mahathir, there are concerns that the prime minister may not be able to rein in his power fully. – July 24, 2018.