Coffers dry, but there’s money everywhere

RM15mil allocation a sign of losing sight of basics, causing so much malfeasance.

COMMENT

By T.K. CHUA

A day after the new Menteri Besar was sworn in, Kedah became “worth” RM15 million more. I wonder how much more would the state be worth after one week, one month or one year?

RM15 million is a small sum nowadays but the concern here is the principle, not just the money. There is a saying, if we can’t handle small money, we can’t do likewise for big money.

Where did RM15 million come from? Surely it must be from the Consolidated Fund of the government, unless it is one of those many donations. The last time I checked, money from the Consolidated Fund can only be taken out with the express permission of the Dewan Rakyat through an appropriate money bill. This is the essence of oversights and fiduciary duty of our system of government.

The RM15 million is to me a sign of losing sight of these “basics” that is causing so much malfeasance today.

Sometimes, the government may spend first and seek approval later in the form of a supplementary budget. But this is usually confined to an emergency or critical situation when money is needed urgently to rectify an unforeseen problem. But was building a business complex in Kedah an emergency?

So why are we doing projects and dispensing money in such a haphazard manner? Did some newly-minted big shot whisper something into the ears of a bigger big shot and voila the project and the money are approved on the spot? It is akin to an addicted shopper deciding to buy something on the spur as she/he walks along the aisle of a departmental store.

The new MB said he had seen the need for the business complex when he was the deputy minister for domestic trade, cooperatives and consumerism. Was research done, a need assessment carried out, and cost benefit appraised? If so, why didn’t the deputy minister incorporate this project into the annual budget of the ministry?

I sincerely hope that we are not considering projects and spending government money based on cursory observations, personal feelings or one-upmanship? We shouldn’t be doing this even in time of plenty, not to mention that we are now faced with revenue shortfalls and economic difficulties.

It does not matter if the person announcing it is the Minister of Finance. We can’t announce projects and spend money as if there are no fiduciary rules and regulations governing our country. Where would all these lead us to if we have RM15 million here, RM100 there and RM200 everywhere without proper evaluation and assessment?

Companies have financial controllers; nations must have treasurers and finance ministers. Most problems have originated from the lack of adherence to the basics.

The financial implication of a poorly conceived project is not just confined to the cost of a project alone. It also involves its subsequent maintenance and opportunity cost. With proper evaluation, the money could be more productively spent elsewhere to generate greater benefits for the people. Otherwise, it would be a white elephant needing expensive maintenance.

T.K. Chua is an FMT reader