Use of trust fund money a sign of inefficiency, says Pejuang man

 

Pejuang committee member Tariq Ismail Mustafa said Putrajaya was inefficient in managing national finances.

PETALING JAYA: Putrajaya should not have to tap into the National Trust Fund (KWAN) for vaccine expenses if it had managed the economy better, said a Pejuang leader today.

Questioning whether last year’s budget was based on political needs as opposed to the risks facing the economy during the pandemic, Pejuang central committee member Tariq Ismail Mustafa also accused the government of managing the country’s finances inefficiently.

“There’s no reason to touch KWAN funds if all the economic stimulus packages were well thought out before they were announced,” he said in a statement.

“The government should have been able to anticipate the risks and economic effects of the pandemic, and formulate strategic measures early on to offset expected shortfalls.

“Instead, a lot of government spending is used on accommodating 70 cabinet members and their staff.”

On Tuesday, the government passed a new emergency ordinance which amended the National Trust Fund Act 1988 to allow the fund to be used for the procurement of vaccines and related expenditure.

The fund reportedly has RM16.9 billion in assets as at the end of 2017.

Tariq, a former Bersatu Supreme Council member, also hit out at Bersatu information chief Wan Saiful Wan Jan for comparing KWAN with the Employees Provident Fund yesterday.

Stating that KWAN funds are held in trust for alternative financing of national development, Tariq said the fund enables revenue to be invested prudently and not misused except for reasons agreed upon at the Dewan Rakyat.

“In terms of accounting principles, it is an ‘accounting provision’ for certain projects where funds are allocated and invested to ensure project financing is not affected,” he said. “It is not a government savings account like how the EPF is a form of savings for employees.”

The trust fund was set up in 1988 and is managed by Bank Negara Malaysia. It is made up of contributions by states which derive royalty from the exploitation of petroleum or other depleting resources, or any authority whose business includes research or development of a depleting resource – with Petronas its most notable contributor. - FMT