KUALA LUMPUR, Feb 5 — The immediate sacking of 23 employees at Perbadanan Kemajuan Negeri Selangor Holdings Sdn Bhd (PHSB) was due to redundancies, Selangor State Development Corporation (PKNS) explained yesterday.

Despite letting go nearly two-thirds of the wholly owned unit’s workforce, PKNS described the move as a reorganisation based on the state-owned firm’s policy of prioritising efficiency and “value for money”.

“The service of 20 members in PKNS was contracted in stages as early as 2010 to fill in the vacancies and strengthen several new divisions in PKNS, including Marketing, Business Development, Strategy and Media, Investment, and Organisational and Integrity Management,” PKNS said in a statement here.

“However, after reconsidering the decision, PKNS views that there is no need to continue the service of the 20 officers considering the same expertise and experience are already present in PKNS’ permanent staff.”

PKNS claimed that the terminations were in accordance to the workers’ respective service contracts, which the sacked staff members are disputing.

PHSB was yesterday thrown into turmoil after 23 employees — nearly two-thirds of its staff — were sacked without warning and effective immediately.

The wide-scale clear-out has also left the future of the state-owned firm in limbo, as those affected were told to vacate their offices immediately and before a handover could be initiated.

It is understood that PHSB general manager Noor Hisham Mohd Ghouth has also resigned in protest.

The group of 23 axed workers will lodge complaints over their terminations with the Selangor Labour Office today.

The latest development comes after a shakeup in the PKNS itself, which saw general manager Othman Omar and executive secretary Norita Mohd Sidek relieved of their duties over the removal of Selangor PKR chief Azmin Ali from its board of directors.