KUALA LUMPUR – The Dewan Rakyat today unanimously passed the National Trust Fund (KWAN) (Amendment) 2021 Bill, allowing the government to dip into the fund to procure vaccines.
The amendment is for the insertion of a new section, Section 6 (c), which seeks to allow KWAN funds to be used for the procurement of vaccines and any expenditure on vaccines for an outbreak of any infectious disease as specified under the Prevention and Control of Infectious Diseases Act 1988 (Act 342).
The bill was tabled by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
During his winding-up speech, Tengku Zafrul said the existing act restricts KWAN from providing financial assistance in the procurement of Covid-19 vaccines.
“Section 6 of the KWAN Act only allows the funds to be used for development purposes.
“Therefore, it needs to be amended to provide an alternative financial source for vaccine purchases. Using the funds would not increase the country’s statutory debt level because it’s not considered a form of borrowing.”
He added that after RM5 billion was used – mostly to procure Covid-19 vaccines – the KWAN fund still has a balance of RM15 billion.
“After the nation’s economy stabilises, we will take efforts to replenish the fund and this needs to be done with cooperation from various necessary parties.”
Meanwhile, during the debate on the bill, opposition leader Datuk Seri Anwar Ibrahim (Port Dickson-PH) said the government must be transparent in the usage of funds.
He added that the Finance Ministry must provide assurance that any procurement in the future will be done through an open tender system.
“We accept this reason after taking into consideration that it will be done efficiently – no leakages, no wastage of funds, as well as strict governance on the procurement of vaccines.
“This is because the finance minister knows that until now, we do not have the complete information on the cost of vaccines and their procurement rate.
“There is a lot to consider here as it is unfair and unreasonable for this generation, for the government to be using funds and spending them without thinking of the possibility that future generations may have to pay higher debts where debts incurred now will be borne by future generations.”
Since the set-up of KWAN in 1988 until the end of 2020, the fund has assets worth RM20.9 billion, with RM10.4 billion contributed by Petronas.
The government had on April 21 promulgated an emergency ordinance allowing it to utilise KWAN, with Tengku Zafrul announcing that RM5 billion would be used for vaccine procurement and related expenses. – The Vibes, October 11, 2021
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