Govt tapping petroleum funds for vaccine expenditure

 

Putrajaya has passed a law to utilise the National Trust Fund (Kwan) for the procurement of vaccines and related expenditure.

This was done through the promulgation of the Emergency (National Trust Fund) (Amendment) Ordinance 2021 today.

According to the National Trust Fund Act 1988, the fund is paid through the Consolidated Fund and Petronas.

“Such contributions may be made by any state in Malaysia which derives any form of royalty from the exploitation of petroleum or other depleting resources,” read Section 5(c) of the Act.

Contributions can also come from any person or authority whose business includes research or development of a depleting resource.

The ordinance adds a new subsection to Section 6 of the Act where subsection (a) and (b) states that the funds may be used either for the Development Fund or the granting of loans or advances on concessionary terms to the federal government or the government of any state.

The new subsection (c) states that the fund can be used for the “procurement of vaccines and any expenditure incurred in relation to the vaccines for an epidemic of any infectious disease as specified under the Prevention and Control of Infectious Diseases Act 1988”.

On March 31, Putrajaya passed a law which allowed the finance minister, chief minister or menteri besar to pass a supplementary budget or use consolidated funds without the permission of the lawmakers in their respective legislature as long as the emergency is in force.

All legislatures are suspended between Jan 11 and Aug 1 due to the proclamation of emergency.

Under normal circumstances, a government will spend first and seek the legislature's permission to pass a supplementary budget later.

This will allow lawmakers a chance to scrutinise how the money was used. - Mkini