Fiscal Prudence must begin with the Government

Much has been said over the Auditor General’s report and there is no need to repeat it here.  As the list of wastages continues, Malaysians will turn less receptive over the Government’s subsidy rationalization exercises and the potential introduction of GST on the basis of trimming spending and reducing the budget deficit.  

No doubt, there is a real urgency to address the budget deficit. And yes, the pain will have to be shared.  But reports of such wastages lead many to wonder why the Government is not more financially responsible at a time of limited resources.

Surely, to be credible and gain the support of the public who are asked to make sacrifices, the Government must at the very least show commitment to be more prudent and to ensure that actions are taken against all abuses, without fear or favour.   All leaders can only lead by example.

http://www.tongkooiong.com/2013/10/fiscal-prudence-must-begin-with.html

2012

Auditor General’s Report: Trim wastage and minimise corruption

Posted on October 29, 2011, Saturday

THIS week, the main story has to be the Auditor General’s Report. Not surprisingly, countless news stories and analyses have been written and debates are still raging on since the release of the much-awaited AG’s Report on Oct 24.

Depending on what and how we choose to read the news stories, there is no doubt we can conclude that abuses in government spending are rampant. All Malaysians must now demand that wastage be trimmed and that corrupt practices minimised.

The 2010 AG’s Report has declared the federal government’s financial statement for the year ending Dec 31, 2010 as a fair and accurate account of its financial standing.

The report found that the federal government’s overall revenue for 2010 had increased by RM1.01 billion to RM159.65 billion.

According to Auditor General Tan Sri Ambrin Buang, the government also approved management allocations amounting to RM149.06 billion, which were deemed inadequate to finance expenditures amounting to RM151.63 billion.

“A total of nine ministries and departments have exceeded their respective allocations for the year prompting Parliament to approve extra funding on June 3, 2011,” he said.

“Development allocations of RM52.79 billion also fell short of the actual expenditure by RM0.66 billion. On April 5, 2011 Parliament approved another round of extra funding amounting to RM1.95 billion to meet this shortfall.”

Twenty-five ministries and 35 federal departments however earned the thumbs up from Ambrin after their financial standings were found to have improved compared to 2008 and 2009. Seventeen ministries and 13 departments were even given an ‘excellent’ rating while a ‘good’ rating was given to the rest.

The above is a news item on the AG’s Report from a mainstream publication. This one below was published in the website of a political party. I believe we can see the vast difference in the presentation of information given to readers between the two reports.

Titled ‘Audit report: Same old, same old wastages’, the report said that like in previous years, this year’s report again revealed wasteful spending by government departments.

Here are some of the items purchased in the year 2010 as listed in the AG’s report released 17 days after the presentation of the 2012 Budget.

Marine Parks Department (MPD) purchased:

• Marine binoculars for RM56,350 or 2,805 per cent higher than the market price of RM1,940.

• LCD TV/DVD player for RM16,100 or 638 per cent higher than the market price of RM2,182.

• Laptop and printer for RM11,845 or 246 per cent higher than the market price of RM3,428.

Majlis Amanah Rakyat (Mara):

• An oven at RM1,200 compared to the market price of RM419, for bakery courses in its Kelantan campus

• Folding beds at RM500, against the market price of RM100

• Two-burner gas cookers at RM200 each, rather than RM59.90 each

• Hair clippers supplied at RM250 each, instead of RM79

• A blender at RM140 instead of RM60

Other observations:

• Nine ministries: Education Ministry, Health Ministry, Home Ministry, Agriculture and Agro-Based Industry Ministry, Public Service Department, Attorney-General’s Department, the Malaysian Anti-Corruption Commission and the Public Services Commission had overspent their allocations by a total of RM3.73 billion.

• RM186 million baggage transfer system to KL Sentral ‘ready’ since 2008 not utilised; initial estimates at RM92 million.

• Tourism Malaysia booked RM194 million (72 per cent) of RM269.7 million of advertisements without tender, against treasury regulations.

• National Sports Council (NSC) bought 23 horses via direct negotiation for RM5.7 million without approval from Finance Ministry, but 18 horses were unqualified to race.

• Universiti Malaysia Sabah took foreign loans to purchase US$39,800 of computer equipment delivered in November 2009, but equipment still in boxes.

• RM160.7 million Education Ministry project to build 300 computer labs in Sabah to be completed April 2008, AG’s report said only two completed.

Readers who care to read between the lines of the two articles, appearing on the first day of the AG’s Report release, would be able to comprehend what is right and wrong and how serious the wastage was even if the ministries responsible were given ‘good’ ratings.

The guy with a simple mind will be asking, “How on earth could the department pay RM140 for a blender which costs only RM60?” This is something quite impossible to justify!

Chief Secretary to the government Tan Sri Sidek Hassan did the right thing by asking government departments and agencies to take heed of the Auditor-General’s Report and improve their financial management.

He also praised the AG for his frank views on the spending abuses of some public servants.

“The comments and views should be taken seriously. I am more worried if there is no comment, whether positive or negative, at all from the Auditor-General,” Sidek said.

I took special note of one item in the AG’s Report — that the delay in replacing the damaged roof of the National Stadium in Bukit Jalil, Kuala Lumpur, has made it a danger to users.

It said that the vinyl roof material had tears and the screws and cables holding it together were rusty. “It is in danger of collapse and needs immediate repairs,” the report said.

The repairs were not carried out because of financial constraints. According to the report, the stadium has requested for RM30 million from the Sports Ministry since 2006 but was told no funds were available.

Now, nine ministries or departments had overspent by RM3.73 billion but the Sports Ministry could not be allocated RM30 million to ensure the safety of spectators. This is not acceptable!

Lest we forget, stadium accidents involving the loss of many lives are not uncommon all over the world. Are we waiting for a stadium tragedy to occur in Malaysia before we take action?

I’m sure we are all disappointed with every single AG’s Report year in and year out.

It’s the same old story of abuses and wastage of public funds.

And public funds come from the people – citizens who have to pay tax from their hard-earned salary or from their businesses. The people have a stake in government expenditures too and they want to see that their money is truly well spent, not abused and gone to waste.

The guilty ministries or departments had better buck up!

Hopefully, the AG’s Report for 2011 will not emerge with an item stating that someone paid RM250 for an egg, which cost 25 sen.

Don’t laugh. There are many egg-heads in our public service.

Comments can reach the writer via columnists@theborneopost.co

2011

Auditor General’s Report: Trim wastage and minimise corruption

Posted on October 29, 2011, Saturday

THIS week, the main story has to be the Auditor General’s Report. Not surprisingly, countless news stories and analyses have been written and debates are still raging on since the release of the much-awaited AG’s Report on Oct 24.

Depending on what and how we choose to read the news stories, there is no doubt we can conclude that abuses in government spending are rampant. All Malaysians must now demand that wastage be trimmed and that corrupt practices minimised.

The 2010 AG’s Report has declared the federal government’s financial statement for the year ending Dec 31, 2010 as a fair and accurate account of its financial standing.

The report found that the federal government’s overall revenue for 2010 had increased by RM1.01 billion to RM159.65 billion.

According to Auditor General Tan Sri Ambrin Buang, the government also approved management allocations amounting to RM149.06 billion, which were deemed inadequate to finance expenditures amounting to RM151.63 billion.

“A total of nine ministries and departments have exceeded their respective allocations for the year prompting Parliament to approve extra funding on June 3, 2011,” he said.

“Development allocations of RM52.79 billion also fell short of the actual expenditure by RM0.66 billion. On April 5, 2011 Parliament approved another round of extra funding amounting to RM1.95 billion to meet this shortfall.”

Twenty-five ministries and 35 federal departments however earned the thumbs up from Ambrin after their financial standings were found to have improved compared to 2008 and 2009. Seventeen ministries and 13 departments were even given an ‘excellent’ rating while a ‘good’ rating was given to the rest.

The above is a news item on the AG’s Report from a mainstream publication. This one below was published in the website of a political party. I believe we can see the vast difference in the presentation of information given to readers between the two reports.

Titled ‘Audit report: Same old, same old wastages’, the report said that like in previous years, this year’s report again revealed wasteful spending by government departments.

Here are some of the items purchased in the year 2010 as listed in the AG’s report released 17 days after the presentation of the 2012 Budget.

Marine Parks Department (MPD) purchased:

• Marine binoculars for RM56,350 or 2,805 per cent higher than the market price of RM1,940.

• LCD TV/DVD player for RM16,100 or 638 per cent higher than the market price of RM2,182.

• Laptop and printer for RM11,845 or 246 per cent higher than the market price of RM3,428.

Majlis Amanah Rakyat (Mara):

• An oven at RM1,200 compared to the market price of RM419, for bakery courses in its

Kelantan campus

• Folding beds at RM500, against the market price of RM100

• Two-burner gas cookers at RM200 each, rather than RM59.90 each

• Hair clippers supplied at RM250 each, instead of RM79

• A blender at RM140 instead of RM60

Other observations:

• Nine ministries: Education Ministry, Health Ministry, Home Ministry, Agriculture and Agro-Based Industry Ministry, Public Service Department, Attorney-General’s Department, the Malaysian Anti-Corruption Commission and the Public Services Commission had overspent their allocations by a total of RM3.73 billion.

• RM186 million baggage transfer system to KL Sentral ‘ready’ since 2008 not utilised; initial estimates at RM92 million.

• Tourism Malaysia booked RM194 million (72 per cent) of RM269.7 million of advertisements without tender, against treasury regulations.

• National Sports Council (NSC) bought 23 horses via direct negotiation for RM5.7 million without approval from Finance Ministry, but 18 horses were unqualified to race.

• Universiti Malaysia Sabah took foreign loans to purchase US$39,800 of computer equipment delivered in November 2009, but equipment still in boxes.

• RM160.7 million Education Ministry project to build 300 computer labs in Sabah to be completed April 2008, AG’s report said only two completed.

Readers who care to read between the lines of the two articles, appearing on the first day of the AG’s Report release, would be able to comprehend what is right and wrong and how serious
the wastage was even if the ministries responsible were given ‘good’ ratings.

The guy with a simple mind will be asking, “How on earth could the department pay RM140 for a blender which costs only RM60?” This is something quite impossible to justify!

Chief Secretary to the government Tan Sri Sidek Hassan did the right thing by asking government departments and agencies to take heed of the Auditor-General’s Report and improve their financial management.

He also praised the AG for his frank views on the spending abuses of some public servants.

“The comments and views should be taken seriously. I am more worried if there is no comment, whether positive or negative, at all from the Auditor-General,” Sidek said.

I took special note of one item in the AG’s Report — that the delay in replacing the damaged roof of the National Stadium in Bukit Jalil, Kuala Lumpur, has made it a danger to users.

It said that the vinyl roof material had tears and the screws and cables holding it together were rusty. “It is in danger of collapse and needs immediate repairs,” the report said.

The repairs were not carried out because of financial constraints. According to the report, the stadium has requested for RM30 million from the Sports Ministry since 2006 but was told no funds were available.

Now, nine ministries or departments had overspent by RM3.73 billion but the Sports Ministry could not be allocated RM30 million to ensure the safety of spectators. This is not acceptable!

Lest we forget, stadium accidents involving the loss of many lives are not uncommon all over the world. Are we waiting for a stadium tragedy to occur in Malaysia before we take action?

I’m sure we are all disappointed with every single AG’s Report year in and year out.

It’s the same old story of abuses and wastage of public funds.

And public funds come from the people – citizens who have to pay tax from their hard-earned salary or from their businesses. The people have a stake in government expenditures too and they want to see that their money is truly well spent, not abused and gone to waste.

The guilty ministries or departments had better buck up!

Hopefully, the AG’s Report for 2011 will not emerge with an item stating that someone paid RM250 for an egg, which cost 25 sen.

Don’t laugh. There are many egg-heads in our public service.

Comments can reach the writer via columnists@theborneopost.com

Read more: http://www.theborneopost.com/2011/10/29/auditor-general%e2%80%99s-report-trim-wastage-and-minimise-corruption/#ixzz2gdklJdS1

2010

SATURDAY, 29 OCTOBER 2011

Why the fuss over the 2010 AG Report.

Let us show you a few examples. Perhaps then readers will understand what all the fuss is over the AG Report.

Bizarre overpricing- the National Youth Skills Institute (under the Youth and Sports Ministry) approved the purchase of a car jack that cost RM50 for RM5,700, a digital camera that cost RM2,990 was bought for RM8,254 and RM1,146 was paid for a set of technical pens with a market price of RM160;

Negligence- the Police Air Wing purchased two helicopters worth RM117.75 million, which could not be used, as they did not meet specifications. Another RM15.4mil was spent to train pilots to fly these helicopters.

Incompetence- Customs Department under-utilized its RM290mil information technology system but was planning to spend another RM451.30mil to develop a new one.

These are the findings of the Auditor General’s report a few years ago.  If the transgressions were not rectified, we know it means, things have not improved. If matters are left as they are, we can then more or less expect what’s coming.  We can expect the same stories about negligence and incompetence because  those responsible are laid back about the issues. We have all the reasons to believe that the report for 2011, next year, will reveal the same story about misappropriation of funds, bizarre overpricing, projects not completed. These are indicators of negligence, incompetence and regretfully said- of officious arrogance.

The 2010 Auditor General's Report  is precisely that- voluminous and horrifying mentions about more or less the same findings contained in reports of preceding years. What does that say? It says loud and clear, the same transgressions committed were not rectified or even allowed to continue. It means the same wrongdoings are allowed to be perpetrated because the enabling circumstances and possibly the same perpetrators were allowed to persist. It further shows those responsible to ensure the transgressions are not repeated have been incompetent and negligent in carrying remedial actions.

The same people who did all the transgressions are still in commanding positions; they will have the opportunity to improve upon their incompetence by doing more damage. The Chief Secretary’s village foolresponse by way of saying he is not worried and that the problem has been dealt with because he has sent circulars asking officials to exercise more discipline is a negligent expression and ensuing act of gross callousness. I am afraid, the public isn’t that forgiving.

We don’t want circulars- we want those transgressors punished or even sacked. Ask them to publicly explain what happened to those overspendings? Let’s ask the chairman of Giatmara for example, where is the shop that sells the heavy duty blender for 4 times the market price. Let’s make it the 1 Malaysia shop for heavy duty blenders. Maybe even give them soft loan from EPF.  Let us Mydin the shop.

Yet we want to extend the services of such a fellow. Let’s elect Allred E Newman for Chief Secretary then.  Then, we are assured the same transgressions repeated, will be met with the same incredulous response ofwhat me worry!

The answer is also, we don’t have to suffer the incompetence of those entrusted to manage public money. If they don’t manage properly and because it’s our money they are managing, they deserve to be publicly assailed. This isn’t about being perplexed as to why the opposition should bicker about the report. If you do, then we shall have to explain to you in as simple terms as possible.

This is beyond opposition. This is about, the mismanagement of our money which deserves being treated as a cause of concern for possible fraud and deception.

The short answer to the question then as to why the opposition gets irked by the audit report as do all right thinking Malaysians is the money being treated isn’t the property of the transgressors. That being so, the administration of the money and the application of the funds thereof, must be done with utmost care. It’s not your father’s money. That is the short answer.

The long answer is, Malaysians are fed up of the deception and misappropriation of funds.

For the year 2010, the government approved a budget of RM 149 billion for operating expenditure. This wasn’t enough and the government had to increase the opex to 151 billion. The report said 9 ministries over spent. Here is where all of us should be concerned. This is taxpayers money being spent on opex. The 2 billion could have been spent of capex capital expenditure which builds capacity to create more wealth.

Now, Malaysians are equally outraged by the revelations of the 2010 Auditor-General Reports on the continuing financial scandals, hanky-panky and gross financial negligence in government. We are horrified to learn for example, the  National Sports Institute acquired 23 horses totalling RM5.66 million without a Financial Ministry go-ahead with none of the horses competed in two recommended international championships; we have the case of the RM142 million RazakSAT malfunctioning barely a year after being commissioned; wait, we have more- The Malaysian Marine Parks Department spent a whopping RM56,350 for a pair of night vision Marine binoculars, 29 times more than its market value of RM1,940; and paid the same amount for another pair of night vision Bushnell binoculars, or 1,893 per cent more than its actual price of RM2,827.

We are once again appalled at the incompetence of front line workers incapable of appreciating the importance of proper placement of decimal points and making accounting mistakes that resulted in wasteful overspending. These should not have happened if there are efficient and proper internal audit systems. As the result of a laid back attitude, we are told of stories where a pensioner received RM21, 433 a month instead of RM214.33 for 16 months!. The mistake was detected after more than a year. The officer who finally detected the mistake should be a given a merit order.

We are also dismayed of hearing Giatmara Centre mistakenly paying RM170 per kg instead of RM1.70 per kg for sugar for a poverty eradication programme or RM25, 500 for 150 kg of sugar! This must be a special kind of sugar.

What about the village-fool response that I mentioned above? In his response to the 2010 Auditor-General’s Reports, the Chief Secretary to the Government Tan Sri Sidek Hassan has repeated his annual reaction and call to all departments and agencies to take heed of the Auditor-General’s comments and views. Which goes to show, that what I said about the same mistakes being repeated did take place, otherwise, he wouldn’t have to repeat his annual reaction would he?

No wonder then, there was this need to delay the submission of the 2010 Auditor-General’s Report to ensure that it would not completely overshadow Najib’s 2012 Budget. Otherwise, the Finance Minister’s charitable overtures would be overshadowed and overwhelmed by the over 1,300 pages of exposes of financial irregularities, hanky-panky as well as misappropriation of public funds in the first full year of PM Najib’s premiership.

All right thinking Malaysians are waiting for the Finance Minister or the Chief Secretary to explain the delay in submitting the 2010 Auditor-General Reports until after the end of the parliamentary debate on the 2012 Budget. If the Report was enclosed alongside the budget documents, the AG Report would have been the foremost parliamentary issue.

http://sakmongkol.blogspot.com/2011/10/why-fuss-over-2010-ag-report.html

2009

FRIDAY, 23 OCTOBER 2009

Auditor General's Report : It's best if you can forget about it

Auditor General's Report : It's best if you can forget about it

The following article is reproduced from Mysinchew.com

You can't believe it, but you have to believe it.

You can't accept it, but you have to accept it.

You are shocked, frustrated and depressed. But you can't escape because you have to face it.
Yes, I'm talking about the Auditor-General's Report. You may remember but it is best if you can forget about it.

Last year, they paid RM5700 for a car jack worth RM50.

This year, a government-owned vehicle consumed a tank of petrol worth RM113 within a few minutes.

Also, a pole platform that cost RM990 was bought for RM30,000;

A thumbdrive that cost RM90 was bought for RM480;

A cabinet that cost RM1,500 was bought for RM13,500;

A flashlight that cost RM35 was bought for RM143;

A welding machine that cost about RM20,000 was bought for RM4,1429.

Besides, they paid RM262,256 for an official car's maintenance fee for four years that cost RM15,197.

Nearly a million ringgit of over payments have been given to some civil servants, causing a total of RM41.01 billion has been spent on emoluments.

A national infrastructure company has been losing money for three years, causing it impossible to redeem the balance of the issued bond amounting to RM7.10 billion.

Even more absurd, a total of RM5.77 billion has been spent in the 179km Rawang-Ipoh double-tracking railway. Averagely, each kilometre cost about RM30 million with the overturn of 32.9%.

What does it mean? It means that: When you are trying hard to tighten your belts, I'm enjoying extravagance!

Feeling distressed? Of course you and I are feeling distressed, but they are happily spending.

Year after year, the people have been paying a lot while corrupt officials have been buying a lot.

Year after year, just like waiting for the announcement of the Academy Awards results, we exclaim and stamp our feet.

But after the release of the report, everything will be back to the square one. No one will bear the responsibility, no one will apologise, no one will resign and no one will face legal sanctions. You keep feeling distressed and they keep feeling happy. 

Yes, you may remember but it is best if you can forget about it because the annual Auditor-General's Report is just a toothless tiger! 

(By LIM MUN FAH/ Translated by SOONG PHUI JEE/Sin Chew Daily)