Law to stop govt misuse of constituency development funds needed: Ideas

KUALA LUMPUR – The federal and state governments were urged to stop misusing constituency development funds (CDF) to buy political support, giving incumbents an advantage.

During an online round-table discussion organised by Bersih 2.0 and the Institute for Democracy and Economic Affairs (Ideas) yesterday, the think tank’s research manager, Sri Murniati, suggested that legislation be passed to ensure all elected representatives, regardless of which side of the aisle they are on, receive equal allocation.

“Since 1971, CDF in Malaysia represents around 1% of the country’s budget. However, its distribution rule remains unequal and without a known formula. 

“This is poor in comparison with other countries such as India or Ghana, where the distribution is equivalent among elected representatives.

Equitable distribution may address some competition problems in our political system caused by the allocation to and unfair treatment of opposition constituencies. But, equal distribution does not address the issue of transparency, nor the high discretion of the executive in deciding allocations.

“Most importantly, unequal distribution will continue to exacerbate the current unhealthy relationship between politicians and their voters, and encourage politicians to devote their time mostly to community work instead of their legislative duties.”

She said the legislation should stipulate the allocation formula for each constituency; source of financing in the annual budget; limit set for CDF annually; requirements for the relevant agencies and lawmakers to publish key information on CDF; mechanisms for public participation in the formulation, implementation and monitoring of CDF; and sanctions for misusing or embezzling these funds.

“In the long term, MPs and assemblymen should no longer be the gatekeepers of funds to build basic infrastructure and address pressing constituency needs. Such roles should be given to local governments that are elected, in order for MPs and assemblymen to focus on law- and policy-making. 

“Elected reps should continue to receive funding for their service centres. However, instead of coming from CDF, such funding should come from Parliament and state assemblies.”

The two-hour discussion also saw Bangi MP Ong Kian Ming of DAP, Sg Air Tawar assemblyman Datuk Rizam Ismail (Umno) and Subang MP Wong Chen (PKR) among its speakers. 

In conjunction with the session, Bersih and Ideas released a report, titled “Removal or Reform: Charting the Way Forward for Malaysia’s Constituency Development Funds”.

The report, commissioned by Bersih and written by Ideas, found that while CDF has the potential to address urgent development needs and narrow gaps between constituencies, its effectiveness is marred by a lack of transparency and accountability, the violation of separation of powers between the executive and legislature, and distortion of political competition, as it provides elected representatives from the ruling party better tools to influence voters’ choices, especially when the funding is lopsided.

The full report is available here. – The Vibes, March 31, 2021