Reaping dividends from reduced corruption and wastage

The new government faces many challenges, but it also stands to gain enormously if it keeps its promises to get rid of corruption and abuse of power.

COMMENT

By TK Chua

When we fought and won over the communists, the nation was supposed to receive “peace dividends”. Money and resources spent on fighting the insurgency could now be channelled for national development and other more beneficial purposes.

We could have benefited billions over the years after getting rid of the communists. Unfortunately, despite the stability we enjoy, we also developed many other ailments over the years. Chief among these are mega corruption, abuse, wastage and leakages.

Malaysia lived through these ailments for years. By the 14th general election, I think the people knew the country could be snuffed out if nothing drastic was done. Hence, the people took action and installed a new government.

The new government faces many challenges. But if it keeps its promises, I think the amount of “dividends” to be derived from getting rid of these ailments will also be enormous.

How much does Malaysia lose through mega corruption each year? As a layperson, I have no way of knowing the exact number. But if we read news of corrupt practices occurring in ministries, statutory bodies, public enterprises and GLCs, would RM5 billion to RM10 billion a year be a fair estimate?

What about abuses like officials paying themselves astronomically high salaries, giving out perks, abusing government privileges and facilities, and intentionally scaling up projects for their own benefit? Would this cost another RM5 billion?

What about wastage and leakages through a half-baked tendering system, poor or no feasibility study on projects, overpricing and unnecessary purchases? I am sure the annual auditor’s report is riddled with examples of such occurrences.

Soon, our new Finance Minister Lim Guan Eng will be formulating his first national budget. Given the country’s fiscal deficit and debt situation, he is not exactly in an enviable position.

However, there are silver linings as I have alluded to above. If the new government is going to make a difference, there is an urgent need to estimate and gather the “dividends” from reduced corruption, abuse, wastage and leakages.

The government should be able to perform more with less in allocations. I have always maintained that a 20% reduction in allocation for each ministry or agency is not farfetched – 10% due to overpricing and corruption, and 10% due to wastage. Food for thought, of course, as my numbers are plucked from nowhere.

TK Chua is an FMT reader.