AG’s exposes of fund mismanagement – “chicken-feed” compared to RM4.6 billion PKFZ bailout scandal


In his budget speech, Prime Minister-cum-Finance Minister, Datuk Seri Abdullah Ahmad Badawi said raising the level of performance of the civil service is critical in sustaining the competitiveness of the nation, especially in the context of globalization. He said it is timely for best practices and the culture of high performance to be adopted in the civil service to drive further improvements in performance.

However, the 2006 Auditor-General’s Report on the third full year of the Abdullah premiership with its litany of waste and abuse of public funds running into tens and hundreds of million of ringgit shows that far from an improvement, there is probably a worsening, in public service culture — with Parliament being reminded constantly with the disgraceful leakage despite RM200 million renovation, with a small waterfall at the media room yesterday.

Deputy Prime Minister, Datuk Seri Najib Razak said on Sunday that ministries must answer for the instances of mismanagement disclosed in the Auditor-General’s Report and the Second Finance Minister, Tan Sri Nor Mohamed Yakcop ordered all departments in the Treasury to check cases highlighted in the Auditor-General’s Report.

One Minister after another is trying to rebut he strictures contained in the Auditor-General’s report, like the payment of RM224 for a RM32 set of screwdrivers, paying RM1,146 for a set of pens costing RM 160, paying RM5,700 for a car jack worth RMN50, the National Higher Education Fund Corporation (PTPTN) paying RM5.59 million in advance to 4,183 students who did not apply for a loan and other horror stories.

All the reactions by Ministers are not only locking the stable door after the horses have bolted, but empty public posturings — including that of Najib as he is also Defence Minister who has to fully explain the largest single case of misuse of funds in the 2006 Auditor-General’s Report — the RM6.75 billion scandal of six Offshore Patrol Vessels (OPV) that have either not been delivered or not operational and the increase of their contract price twice from RM4.9 billion to RM6.75 billion or 38 percent.

In actual fact, the 2006 Auditor-General’s Report was completed on 28th June 2007 and would have been submitted to the government shortly after.

Why are Cabinet Ministers only beginning to wake up now to the gross mismanagement, waste and abuse of public funds more than two months of the completion of the Auditor-General’s Report?

Would the Ministers reacted to these gross mismanagement of public funds if no publicity had been given to the Auditor-General’s Report?

Were all the Ministers aware of and had approved the explanations which the various government departments had given, some most ridiculous and most unacceptable, to the strictures of the Auditor-General’s Report and which had been tabled in the House?

Is every Minister prepared to appear before the Public Accounts Committee to personally assume responsibility for the mismanagement of public funds highlighted in the Auditor-General’s Report?

The proposal announced by the Prime Minister that Secretaries-General of ministries and Heads of Services will be offered three-year contract and their performance rewarded based on KPIs sound good on paper, but from the abysmal failure of the government to “walk the talk” of its commitment to efficiency, excellence and integrity in the past four years, there is little confidence that any major changes in civil service performance, accountability and integrity would ensue.

The reason is very simple — if the Cabinet can be so irresponsible and unaccountable as to approve a RM4.6 billion bailout of the Port Klang Free Zone scandal, without the former Transport Minister Tun Dr. Ling Liong Sik and the present Finance Minister Datuk Seri Chan Kong Choy having to assume any responsibility although both of them had unlawfully without Cabinet authority and Treasury approval given government guarantee for RM4.6 billion bonds issued by Kuala Dimensi Sdn. Bhd — the beneficiary of the exorbitant land transaction as well as turnkey contractor — and causing the Cabinet recently to give retrospective approval for the “unlawful government guarantee”, the mismanagement of millions or tens of millions of ringgit by public officials in the various ministries were mere “chicken-feed”!

How could any action be taken against errant public officials when Ministers enjoy a culture of impunity for their crimes and misdeamnours?

If Abdullah wants to send a clear message that there should be no more hanky-panky with public funds in government, then charge and prosecute Liong Sik and Kong Choy in court for their abuses of power in forcing the government to bailout the RM4.6 billion Port Klang Free Zone scandal with their unauthorized and illegal issue of implicit government guarantee for RM4.6 billion bonds without Cabinet authority and Treasury approval.

Otherwise, the horror stories of abuse and mismanagement of public funds running into tens and hundreds of millions of ringgit in the Auditor-General’s Report will continue to be an annual national shame and tragedy.

(Speech 2 on 2008 Budget in Dewan Rakyat on September 11, 2007)

  1. #1 by waterman on Tuesday, 11 September 2007 - 3:23 pm

    Uncle Lim
    Seems like a lot of ‘efforts’ are being made to divert attention away from the ‘Mongolian’ and this “RM4.6 billion” cases. I sure hope the truth will be unveiled for the good of all Malaysians.
    Take care & may God bless you & family & Malaysia!

  2. #2 by smeagroo on Tuesday, 11 September 2007 - 3:30 pm

    SUch scams are also prevalent in local Universities and hospitals where goods are jacked up beyond ur imagination. How would u feel to constantly lose business to another company despite you being able to supply the same goods at much lower price but yet they wont buy from you?

  3. #3 by sotong on Tuesday, 11 September 2007 - 4:15 pm

    The damaging mix of politics with business is detroying our economy and competitiveness to general real, permanent and rewarding jobs for our people. Imagine you take away oil revenue!

    This is one of the reasons, our people talented and hard working migrated overseas to apply their knowledge, skills and talents to build their careers in a globalised and competitive world.

    This is the government greatest failure – to take proper care of its own people and capitalise on their knowledge, skills and talents to benefit the country.

  4. #4 by madmix on Tuesday, 11 September 2007 - 4:50 pm

    If government spend say 20 billion a year on procuring goodsa nd services and they get ripped off by 900% mark-ups, how much is actual value and how much goes to the hands of greedy suppliers and contract givers. There must be many millionaire in Malaysia.

  5. #5 by smeagroo on Tuesday, 11 September 2007 - 4:58 pm

    They are many illegal millionaires.

  6. #6 by Godfather on Tuesday, 11 September 2007 - 5:22 pm

    RM 4.6 billion or RM 224, big or small, these thieves simply “sapu” and they will only stop until there is nothing left to steal.

    This administration is in a shambles because there is total lack of control and everyone in a position to decide on contracts – big or small – is now expecting to have a cut. First stage is a Suharto-style government where the whole world knows that everything in Bolehland has a mark-up. Next stage is Zimbabwe where there is nothing left to steal, and then the pendatangs will be thrown out of their own country.

  7. #7 by madmix on Tuesday, 11 September 2007 - 5:24 pm

    Digital camera only part of a set that includes computers etc says minister. Next screw drivers are actually part of a set that includes a jack hammer, and other power tools. The technical books also include desks and chairs to read them and cabinets to store them.

  8. #8 by k1980 on Tuesday, 11 September 2007 - 5:59 pm

    The tragedy is that these thieves will get re-elected in the polls because they belong to a political party which offer freebies/priviledges which no other political parties could afford to offer.

  9. #9 by shortie kiasu on Tuesday, 11 September 2007 - 6:02 pm

    PM Abdullah Ahmad said under his administration he will eradicate rent seeking culture of Malays, but now the reality proved otherwise, he has allowed such culture to flourish with vengence, the disease is spreading with renewed vigour under his BN Government and among the UMNO members and leadership they are fighting for a taste of the rent seeking, it is free and easy to get rich quick in Malaysia, so long if you are a Malay or a UMNO member.

  10. #10 by cina apek on Tuesday, 11 September 2007 - 7:44 pm

    I think AG should keep quiet and shut up. What is the purpose of auditing here and there when Abdullah Badawi dont even bother ? I think it is a ashame. That the Government just do not bother what the AG has found and life continues as if nothing has gone wrong in the government machinery.

  11. #11 by Justicewanted on Tuesday, 11 September 2007 - 8:31 pm

    It is a free for all.

    Everybody in BN is trying to make some money.

    Looks like instead of spending time thinking how to serve the people and country, those leeches think of how to make money by coming out with all sorts of projects.

  12. #12 by taikohtai on Tuesday, 11 September 2007 - 8:41 pm

    At the rate the country is being plundered, very soon there will be nothing left. But that’s not the main worry. The main worry is that Malaysia will be deep sh*t in debt and guess who is going to pay for it? Yes, you rakyat.
    IN the near future, the country will go bankrupt as Malaysia can no longer compete effectively even against the rest of the world. The blame game will then begin and neighbours may turn against each other, race against race.
    Sooner or later, the real kerises shall be drawn again and few shall be spared.
    Sorry I have just painted a scary scenario but at the rate Malaysia is being raped by BN, it is NOT THAT UNREALISTIC. Last chance mate!

  13. #13 by khch01 on Tuesday, 11 September 2007 - 9:26 pm

    The RM4.6 billion scandal may not viewed as corruption but the traffic summons briberies are. Spend, spend and overspend likewise are not viewed of corruption, not even abuse of power. The big spenders are only asked to explain, that is it. Case close.

  14. #14 by karaoke singer on Tuesday, 11 September 2007 - 10:26 pm

    How can the performance of the civil service be any better if the focus is on money making aka being competitive and pleasing the boss all the time ? It is actually very demoralizing if there is no ethic and there is no moral in one’s job. If the public sector is into money making, then it might as well become a private sector. Big bucks are earned when you can delivered. People would not care about how you deliver. As long as you deliver what they want, you get all the money. That is also known as an efficient govenment delivery service or system. When it comes to money alone, don’t expect conscience, honesty, integrity and transparency to be there. Choose between God and money. With God, you are a human being with a living heart. With money, you are a human being who does not know what it means to be a genuine human being. Why do Malaysians still need so many religious programmes in the t.v. ? We live in a religious country and yet we are told to behave in a certain manner that leads to more income coming into the country. It is just pure hypocrisy.

    Not only one is not sure why is there such a large sum of money spent, one should be asked how come only certain officers are involved ? How come certain officers are given so much privileges ? It does not have to be money. But other forms of privileges. How come certain officers are allowed to do anything without being questioned ? Money is wasted not only now but it is being wasted for the past 50 years. You can call 50 years short. But other countries have shorter number of years to achieve great feats. All around us, we can see how money is wasted. Facilities that are not made used to the full. No proper human resource management. Vandalism. Buying of equipments which only certain officers can use. Others of course.

  15. #15 by k1980 on Tuesday, 11 September 2007 - 10:46 pm

    The various heads of government departments mentioned in the Auditor-General’s Report for extravagant wastage/pillage of public funds would had been executed had they been in China or hanged themselves had they been in Japan. But over here, they can look forward to being rewarded by another three-year contract when they reach retirement age!

  16. #16 by undergrad2 on Tuesday, 11 September 2007 - 11:54 pm

    With every budget announced, Malaysians have their asses exposed and real hard. But what do they do? They tear their hair out and stomp their feet and scream! What good will that do? The cows have since left perhaps this time never to return.

  17. #17 by pwcheng on Wednesday, 12 September 2007 - 2:56 am

    “One Minister after another is trying to rebut he strictures contained One Minister after another is trying to rebut he strictures contained in the Auditor-General’s report, like the payment of RM224 for a RM32 set of screwdrivers, paying RM1,146 for a set of pens costing RM 160, paying RM5,700 for a car jack worth RMN50, the National Higher Education Fund Corporation (PTPTN) paying RM5.59 million in advance to 4,183 students who did not apply for a loan and other horror stories” as cited by YB Kit in Para 4.

    The corruption level in this country is shooting through the roof and looks like this cancer is end stage. We all know those are heavily inflated for kickbacks which they are not at all mortified.

    Coming t the question of PTPTN, the AG must investigate whether such loans are given to Phantom students as how could they give out loans without applying. The fact that there are no proper records of loan takers and defaulters and the “tidak apa” attitude of recovering the loans and even to the extend of “tidak apa” when somebody wants to repay the loan. All these gives a reasonable suspicion of something not right somewhere and I believe things are being messed up with the purpose of covering the dirt. I am sure if everything is above board, I am sure most of them (as many are highly qualified) will be able to do a much better job.

    Corruption is the root of all evils in this Bodohland.

  18. #18 by Godfather on Wednesday, 12 September 2007 - 8:01 am

    Have you people wondered why Bank Islam and Bank Pertanian have to be recapitalised by billions of ringgit ? That’s because they give out loans to bogus clients or undeserving clients, with little or no chance of getting the money back. Hence the move by Big Daddy to inject more funds before these banks become insolvent.

    From the days when Mahathir came up with agricultural loans to bumiputra small business loans, these institutions were bound to fail, but taxpayers’ money was simply used to finance all these hair-brained schemes. Who is being held accountable ? No one.

  19. #19 by undergrad2 on Wednesday, 12 September 2007 - 11:03 am

    They were cash cows for UMNO and their cronies. They milked these cows until their tits could no longer take the abuse.

  20. #20 by Godfather on Wednesday, 12 September 2007 - 1:38 pm

    And did the UMNO apologist RealWorld show up here and say that it was all wrong, that the ACA should investigate and throw the book at the culprits ? No. He would probably say “how sure are you that the opposition can do any better ?” or “how sure are you that such things won’t happen with the opposition in charge?”

  21. #21 by wtf2 on Wednesday, 12 September 2007 - 10:31 pm

    ACA is supposed to investigate now.

    If after all is said and done and no culprit is brought to book, we can bid the ACA farewell. It can be concluded that it’s another dysfunctional organization.

    While the 3RM vs 30 sen curry puff can be explained and accepted, the other anomalies cannot. So let’s sit and wait for the show to begin and see how it ends. Will it be another sad day for Malaysia? Or will ACA show something substantial instead of going after curry puffs..

  22. #22 by sam_cyse on Thursday, 13 September 2007 - 11:51 pm

    These are corruption at its extreme. I can bet my last ringgit that none of these government officers (mainly UMNO supporters) mentioned will face any punishment.

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