Anwar bombshell: RM1.4bil 'missing', are we closer to bankruptcy than expected

Opposition Leader Anwar Ibrahim dropped a bombshell on Tuesday, revealing that RM1.4 billion has gone missing from the Treasury’s contingency fund. He tied it to the 17-day delay taken by Prime Minister Najib Razak before the government finally tabled the Auditor-General's report late last month.

The contingency fund is for unforeseen federal expenses, while the AG's report is usually tabled before the Budget is presented so that lawmakers and the public know how the past year's allocations were spent before voting on the new spending plan.

This year, in a glaring departure, the AG's report was finally tabled only a fortnight after Najib unveiled another record-sized RM232 billion Budget 2012 stacked with one-off cash giveaways in a bid to 'butter up' voters for the 13th general election widely expected to be held within months.

“Now we are forced to suspect there is some other compelling reason why they chose not to table the audit report at the right time,” Anwar told a press conference at the Parliament lobby.

According to Anwar, a former Finance minister, the Auditor-General had found just RM79.15 million in the fund even though the Government Expenditure Estimates reported that RM1.5 billion had already been allocated.

“Where has the money gone? More importantly, when did the RN1.4billion go missing? I don’t think the Audit Department could have made a mistake. They are more meticulous than that when it comes to accounting,” he said.

Poor financial management

Indeed, since taking over from Abdullah Badawi in 2009, Najib has unveiled projects worth pie-in-the-sky numbers. But until now there is scant impact or result form his RM1.4 trillion Economic Transformation Plan.

His lack of political will has also resulted in his administration pulling back a New Economic Model that was meant to open up the economy and make it competitive.

Yet, despite slashing subsidies and hiking prices of consumer essentials including cooking gas, petrol and sugar, Najib himself has spent lavishly on his overseas trips frequently bringing along his family and personal guests. His multi-million ringgit renovation of the recently-refurbished official residence has also raised eyebrows.

A record number of by-elections held since the 2008 general election has also seen Najib promising 'instant noodle' projects worth hundreds of millions in order to win votes.

All these factors, added together, have placed strain on the country's cash flow, say analysts.

"RM1.4 billion is big money. It is serious and rings alarm bells. Not only is there possible corruption but also it raises the question of whether things are worse that we thought. Is Malaysia already at the doorstep to bankruptcy that Najib has to use emergency funds in such a stealthy way," a research director at a bank-backed brokerage told Malaysia Chronicle.

Minister in Prime Minister's Department Idris Jala had in 2009 warned that Malaysia could go bankrupt like Greece by 2019 if the government did not reduce debt.

Malaysia Chronicle