Malaysia

Govt wastage worsens with every AG report: opposition

Opposition leader calls for special committee to ensure all wastage, leakages issues addressed

Updated 4 years ago · Published on 01 Nov 2021 2:19PM

 Govt wastage worsens with every AG report: opposition
Opposition leader Datuk Seri Anwar Ibrahim says individuals who played a hand in any financial mismanagement highlighted by the auditor-general must be held to account. – Wikipedia pic, November 1, 2021

by Amar Shah Mohsen

KUALA LUMPUR – It was no smiling matter as opposition leader Datuk Seri Anwar Ibrahim (Port Dickson-PH) today gave a stinging rebuke of the past and present governments’ apparent failure to address revelations of wastage and leakages made by the auditor-general in his annual reports.

Speaking in Dewan Rakyat, Anwar said it is necessary for the government to set up a special committee headed by the prime minister or finance minister to ensure all issues raised in the documents are addressed accordingly.

He added this should include identifying individuals who played a hand in the financial mismanagement highlighted by the auditor-general.

“Should the minister, chief secretary or department director be held responsible? (If this is not addressed), a similar report will be published again next year.

“This is an issue we have been debating on each year the Parliament has existed and yet, there is no change,” he said when debating Budget 2022 in the Dewan Rakyat.

Anwar said leakages involving ministries and government agencies have been reported since the 1960s but, despite that, the problem appears to get worse every year.

This year’s report, which was released last Thursday, highlighted a slew of non-compliances with financial management that have led to wastage amounting to more than RM640 million last year.

Among these was a RM499.18 million payment for maintenance service claims for the Government Integrated Radio Network (GRIN) project without being verified at the National Security Council (NSC) level, which Anwar described as extremely embarrassing.

Off-budget funds involve federal finances, too

On a separate issue, Anwar dismissed suggestions by those in the administration that off-budget expenses are not directly related to the federal government, insisting that Putrajaya will eventually be liable for any debt. 

He cited 1Malaysia Development Bhd (1MDB) as a prime example of how off-budgets can come back to haunt the government, with RM32 billion still owed to this day. 

“Who is going to pay for this, the company? Of course it is the government. So, to say the government is not liable is false. Some people say issues surrounding 1MDB are slanderous. What slander when we have to pay RM32 billion?” 

He said this is the reason why any major projects with off-budgeting amounting to billions of ringgit must be scrutinised, to avoid passing the burden to the federal government in the future. 

Among others, he said is the decision to entrust the country’s 5G network roll-out to Digital Nasional Bhd (DNB), which is wholly owned by the Minister of Finance (Inc). 

“There is no explanation on the tender process, why the cost has ballooned to possibly more than RM20 billion. I don’t believe the spending of the company will not burden (the government). 

“We are seeing financial losses for tens of years because of the flexibility granted. We cannot run away from claims of leakages and questions surrounding the issuance of contracts that provide exorbitant commissions and profit.”

Anwar added that allowing private entities to manage non-urgent, strategic government projects is uncalled for, as there will be negative ramifications in the long term. 

“Yes, there is a rationale to allow off-budgeting. But if the Finance Minister (Datuk Seri Tengku Zafrul Tengku Abdul Aziz) is transparent, he will mention the projected expenditure to be incurred by the government in the budget.” – The Vibes, November 1, 2021

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