KUALA LUMPUR – Concerns have been raised following Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz’s explanation that the RM3 billion meant for the purchase of Covid-19 vaccines was not allocated in Budget 2021.
Former prime minister Datuk Seri Najib Razak was quoted by Free Malaysia Today as saying he believes the original RM3 billion, announced during the Budget tabling last year, was diverted elsewhere.
“It is certainly unbelievable that such an important spending as (on) vaccines was never allocated in the government’s RM310 billion Budget.”
The government has decided to dip into the National Trust Fund (KWAN), taking RM5 billion for vaccine procurement and its immunisation programme.
Najib, who previously held the finance portfolio, questioned the RM5 billion sum.
He noted that Tengku Zafrul, when tabling Budget 2021, announced RM3 billion for vaccine procurement and contingency costs.
Khairy Jamaluddin, the coordinating minister for the Covid-19 vaccination drive, has, on several occasions, said RM2 billion will be used to buy vaccines and the RM1 billion is for contingencies.
However, he yesterday echoed the finance minister’s explanation on the use of KWAN funds.
“Now, it has increased to RM5 billion – RM3 billion to buy vaccines, and RM2 billion is for the logistics of carrying out vaccinations,” said Najib.
“Are we to believe that vaccines suddenly cost 50% more, while the logistics cost has increased 100% within the five months between last December and April?”
The decision to tap KWAN and not take on long-term government bonds is perplexing, considering that the trust fund promises good returns on assets at 6.3% on average, he said.
Najib said the government’s recent domestic borrowing of RM4.5 billion saw an interest rate of only 3.48%, while another RM5.4 billion in 10-year sukuk raised from foreign markets has 2.07% interest.
“The much-feared RM1 trillion national debt figure and government limits on debt-to-GDP ratio are most probably the reason why the government decided to dip into KWAN for the entire RM5 billion for vaccines.”
He said the RM1 trillion refers to direct government debt, unlike Pakatan Harapan’s inclusion of contingency liabilities and government guarantees in its debt calculations.
“It would be politically damaging for the Perikatan Nasional government to be the first in the country to breach that limit.” – The Vibes, April 27, 2021
