Show the impact of our taxes, not just how they’re spent, says C4

C4 said performance audits are necessary to check if the spending of taxpayer funds had achieved the desired impact.

PETALING JAYA: 

Following the tabling of the largest budget ever last week, the Center to Combat Corruption and Cronyism (C4) urged the government to show the results from the spending of taxpayer funds, not just how they are spent.

In a statement, C4 said performance audits are necessary to check if the spending of taxpayer funds had achieved the desired impact.

The anti-graft NGO added that while financial audits reveal how public money is spent it may not capture the impact of such expenditure.

C4 also raised concerns about the management of government-linked investment companies (GLICs), such as Khazanah Nasional and Permodalan Nasional Bhd, which are owned by Minister of Finance Incorporated (MoF Inc).

“With Anwar Ibrahim being both prime minister and finance minister, we are concerned by the lack of measures that regulate undue influence from ministers in the management of these multi-billion ringgit investments,” it said.

C4 said since these companies are set to invest RM120 billion locally over the next five years, the influence ministers have over these large investments should be curbed so as to reduce corruption.

“With all this in mind, how can the government pursue such huge investment plans by our GLICs without adequately restructuring their management?” it asked.

C4 also recommended that state governments set up internal audit units for statutory bodies, and reiterated that it was not enough to just list expenses without showing their impact.

“Introducing performance assessments to evaluate the degree of success in accomplishing key performance indicators for government entities would be an important next step towards improving good governance,” it said.

Legal reforms

The group also welcomed the government’s announcement that around 3,000 laws will be reviewed, but said more transparency was needed. It added that the repeal of laws like the Sedition Act and the Official Secrets Act (OSA) should be a priority.

C4 called for a law ministry to be formed to handle the planned legal reforms, adding it was time for the legal affairs division parked under the Prime Minister’s Department to be expanded to a full-fledged ministry.

“As the main department overseeing legal and institutional reforms, it must have the resources to carry out this important agenda,” C4 said. - FMT