Khir: Selangor children's fund may go bankrupt in 5 years

Former Selangor Menteri Besar Dr Mohd Khir Toyo has warned that a state children fund is making huge losses, claiming it would be bankrupt in five years.

He claimed that the Auditor-General’s Report 2011, which was released today, reveals the income of Tabung Warisan Anak Selangor (Tawas), a state-sponsored foundation, could not cover the operating costs of the fund.

He said Tawas gets its fund from Yayasan Warisan Anak Selangor (Yawas), that only earned its income from short-term investments amounting to RM198,101, RM210,716 and RM213,955 respectively for 2009, 2010 and 2011.

However, he said Yawas’ operating cost stood at RM1.55 million, RM1.64 million and RM 1.71 million for the three years, meaning it made a loss of RM1.35 million, RM1.43 million and RM1.49 million in year 2009, 2010 and 2011 respectively.

“If the income and expenditure trend still continues, it is possible that Yawas and Tawas will close down in five years or (the) state government has to bail it out,” he wrote in his blog today.

Khir, who is Sungai Panjang state assemblyperson, pointed out that the Yawas balance as at year 2011 was RM5.68 million, which the report cited is “smaller compared to total money needed to pay for Yawas’ operation cost and benefit Tawas scheme”.

Formed in 2009, Tawas aims to pay every registered new-born baby in Selangor RM100 per annum until the age of 18, upon which the child would get a final one-off payment RM 1,500.