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Leakage And Mismanagement Of Funds Are Serious

Source :  https://www.sprm.gov.my/index.php?id=21&page_id=103&contentid=2726&cat=BKH

Article search by :  Pn. Nurul Ezani Abdul Hamed (Penolong Akauntan)


The value of integrity is seen to be fading among the few companies that are responsible for helping the government through the distribution of funds or government assistance to the needy.

The existence of funds such as the National Economic Recovery Plan (PENJANA), the Malaysian Indian Society Transformation Unit (MITRA), the Malaysian Institute of Automotive, Robotics and IoT (MARii) and so on are aimed at helping people who have been affected by economic pressure during the Covid-19 pandemic and are even able to improve their skills as well as self-potential.

A number of people are affected and burdened by the issue of job loss, unemployment, business problems and even have to close down because the economic situation in general is not developing as usual.

Therefore, the government introduced funds, loans, moratoriums, skills training, special financial assistance and so on to help the people to continue their survival.

But what happened? There is a group of individuals, companies and organizations that take the opportunity to profit from the rights and sufferings of the affected people.

These people openly take advantage by making false claims to obtain funds provided by the government for their own wealth.

This is the attitude of economic crocodiles on a small and medium scale. The value of integrity is fading and greed has become a culture.

As a result, the working class is thrown out, students are unemployed, traders are forced to close down businesses that should receive benefits and assistance, marginalized just like that.

This is a form of leakage that the government should correct. There is no point in having a beautiful policy but a failed implementation. There are too many loopholes that create room and opportunities for abuse. Among them are:

  1. Weaknesses in the review process of the authenticity of information submitted by applicants (individuals, companies, organizations). This causes several companies owned by the same person to make claims.
  2. The issue of emergency (emergency) is used as an excuse not to do due diligence on the applicant. It is said that if it is too rigid (rigid) it will be used as an excuse because of bureaucracy.
  3. There is no clear mechanism to monitor the programs or activities being carried out to ensure that they are actually implemented with the right number of participants. The agency only relies on the program or activity report submitted by the applicant.
  4. There are no clear rules and laws to take action against applicants such as blacklisting, civil suits and reclaiming unspent funds.

The agencies to which these funds are channeled must be constantly monitored. Key Peformance Indicator (KPI) is not about how many have received help / funds or what percentage of help / funds (financial) has been channeled? Or how many programs / activities have been made? All these KPIs are purely quantitative in nature.

What should be used as a KPI is the impact or outcome of the activity / program. Then, only then can the desire to reduce unemployment and the number of troubled businesses and develop the potential and skills of the working class be achieved.

The Malaysian Anti-Corruption Commission (MACC) sees the issue of embezzlement and leakage of funds / aid of this kind as an important issue. For example, as a result of collaboration between MACC and agencies and ministries involved through special operations throughout 2022, a total of 133 individuals consisting of company owners and directors were arrested. More than 100 companies have been investigated involving embezzlement of funds estimated at RM194 million. To date, a total of 34 company owners or directors have been charged in court for submitting false claims.

In 2023, MACC will focus on the issue of leakage and misappropriation of these funds including in the human resources, welfare, automotive, education and higher education, animal husbandry, agriculture and plantation sectors.

Date of Input: 22/06/2023 | Updated: 05/07/2023 | muhammad.isam


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