(Parliament, Thursday): National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw urges the Government to step up the mechanism to prevent all forms of wastage including corruption as one of the steps to ‘implement National Mission towards achieving National Vision’.

Summary of the speech by Dr Tan during the debate on the 2007 Supply Bill (Budget) in the Dewan Rakyat on 7.9.2006.

 

I rise to speak in this debate with anxiety because this is the most expansionary budget in the history of the House. The Prime Minister and Finance Minister Datuk Seri Abdullah Ahmad Badawi showed his prudence in the 2005 and 2006 budgets. Now, in the RM159.4 billion allocation of the 2007 Budget, RM112.9 is for operating expenditure and RM46.5 billion for development. This the biggest development expenditure compared with that in the previous budgets.  Previously the PM was prudent until the criticism about slow development projects and the unhappiness of contractors. In 2007, many projects will be open to tender and then implemented.

 

Datuk Seri Abdullah says that the economic growth is forecast to be 5.8% (not 6% as originally stated), private sector investment increases by 10.1%, private investment is expected to increase by 10.1%, the current account in the balance of payments is estimated to record a surplus of 16.7% of Gross National Product (GNP), revenues will increase by 11.8% to RM134.8 billion and budget deficit is 3.4% of Gross Domestic Product (GDP) in 2007 compared with 3.5% in 2006. Although these are positive signs, we are very worried because the budget is the most expansionary in the history of this House. Without this expansionary budget, will the GDP grow by at least 5%? Various problems such as the lack of integrity and wanton waste raise anxiety.
 

Will the Government be able to stimulate people of all races to work hard to make the National Mission a success?  This Mission is to move the economy up the value chain, raise the capacity for knowledge, address socio-economic inequalities, to improve quality of life and to strengthen implementation capacity.

Practise ethics and integrity

In the past two years, the Government has formed Integrity Management Committee in all ministries, departments and Federal Government and
State Government agencies. It has formulated National Integrity Plan (NIP) and set up Malaysia Integrity Institute (IIM).

The Prime Minister says that the launching of PIN and the institute will be a catalyst for the attainment of the objective of enhancing integrity. All these will enable Malaysia to forge ahead towards becoming a developed nation in its own mould, as well as to emerge as a nation of excellence, glory and distinction.

NIP presents Target 2008 to reduce corruption, increase efficiency, enhance governance, strengthen family and improve life. We hope that
all members of parliament will lead other sectors in embracing and practising Target 2008.

Members of parliament must help promote NIP by creating a comprehensive mechanism to involve all sectors such as the private sector, political parties, non-government organization, religions, media, women, youths and students in the campaign to enhance integrity in an integrated manner.

In the last two years, IIM has sponsored about 800 programmes in the whole country. I hope that these programmes are also introduced in schools and teachers' institutes.  According to IIM, it is setting up branches at state level, publish reading materials in various languages, involve world bodies such as United Nations Development Programme (U.N.D.P.) and create National Integrity Index starting with Perak. These are preventive. Jeremy Pope from U.N.D.P. is helping the institute to produce Malaysian Integrity Source Book.

Professor Datuk Dr Syed Hussein Alatas, an intelectual, does not take this index seriously. He says :"If a leader truly wants to attempt to fight against corruption, he or she must be prepared to be a political martyr. If he or she is not prepared to do so, how can he or she try to eradicate corruption."

The IIM report must be tabled for debate in the House every year.
 

As a punitive measure, Anti-Corruption Agency (ACA) investigates and brings cases of corruption to courts. The issue of efficiency of ACA is controversial. The agency must be independent. We have always proposed that it should be made solely responsible to parliament, not to the Prime Minister's Department as at present.

 

Ministry of Finance (MoF) & Security Commission (SC) must be transparent

 

Every day, Malaysian Stock Exchange deals with billions of ringgit. The amount of money involved in each Initial Public Offer (IPO) is huge. Hence, SC and MoF must show their integrity and transparency.

 

Recently, the merger between ECM Libra and Avenue Capital Resources attracts attention. Both are stockbrokers. ECM Libra, a private company, is smaller, compared with Avenue which is a government-linked company(GLC). Aroma Teraju Sdn Bhd, owned by Ministry of Finance Incorporated, controls Avenue. After the merger, a new company is created, that is, Avenue International Capital Berhad (AICB). In the reverse takeover, Aroma has only 15% shares, but ECM Libra shareholders own 53%. I have more than 10 questions on the matter for MoF and SC. I do not think they are sub justice. There is a court case involving one of the shareholders of Avenue. At this point, the Chairman of the Public Accounts Committee (PAC), MP for Johor Baru Datuk Shahrir Samad stood up to say that the question of sub justice has been raised and that these questions had better be asked in a PAC meeting.(I am Deputy Chairman of PAC).

 

Effective Management of Projects

 

The MoF has repeatedly announced that 880 and other projects under the Ninth Malaysia Plan (9MP) are and will be open for tender. This budget is in the first year of 9MP. Usually, a project goes through design, land acquisition, assessment, calling and awarding of tender and implementation. This process takes one to two years. We must improve the efficiency of management of projects, including the shortening of the period of the process to less than one year.

 

The 2007 budget allocates RM27.5 billion for myriad of construction projects. If these are managed effectively, the construction sector will grow.

 

Special Supervisory Committee

 

The effective management of projects is important. On 24 August, 2006, MoF answered my question on open tender for the 880 and other projects under the 9MP. It maintains that it gives out contracts based on systematic assessment which emphasizes on the financial capacity and technical aspect of companies, based on the principles of transparency, open competition, best interest value, fair, just and accountability. Implementation Agency will supervise and monitor the projects.

 

While hoping that the tender system for projects is as stated by MoF, I wish that the Special Monitoring Committee chaired by the Prime Minister will ensure that there is no wastage and that no project will be delayed or abandoned.

 

Obvious Wastage in the 2005 Auditor-General's Report

 

In 2005, the Auditor-General certified 423 accounts, including auditing based on samplings. Legally, 2005 Auditor-General's Report should be presented for auditing by 31 July, 2005.He signed the report earlier, on 23 Jun, 2006. It is more systematic. Many issues arise from it.

 

For example, financial management of the federal government still does not follow regulations fully, such as control of management, scrutiny of expenditure, management of asset as well as preparation of records. Revenue arrears went up from RM9 billion in 2001 to RM12 billion in 2005, RM6.08 billion being over three years.

Do not regulate doctors to the teeth

 

The Health Ministry has been trying to enforce the Private Healthcare Facilities and Services Act (PHFSA) 1998. For example, in the general design requirement of clinics, it did insist that the doors and stairs must be at least four feet wide and all clinics must have emergency equipment. (The Health Minister Datuk (Dr) Chua Soi Lek, having practised privately for some years as a doctor, is trying to see things in the right perspective).

 

The Director-General (DG) of Health has good intention to weed out black sheep and to protect the public. But, he is obsessed with public health, being relatively unfamiliar with the conditions of practising physicians and surgeons.

 

We are short of doctors in government hospitals and rural areas. We require better doctors. In Malaysia, the Government seems to be concerned with training more of them. Just because students have good examinations results, it does not mean that they are suitable to be doctors. Some are not. Much as parents yearning that their children become doctors, the Government must have workable mechanism to select more suitable candidates to be trained as doctors.

 

Like all professions, there are black sheep in medicine. However, most doctors are ethical. It is not reasonable to regulate them to the teeth.

 

For the General Design Requirement of clinics under the Private Healthcare Facilities and Services Act, (PHFSA) 1998, the DG should have consulted various medical bodies for more acceptable regulations.

 

Most doctors would like to help patients in emergency. But, as society changes, the Government must promulgate laws to protect them.

There is an urgent need to formulate guidelines and codes of ethics for managed care to ensure that things are run ethically, including payment to doctors in time. As it is, doctors wait for a long time to get paid. This must change.
 

(07/09/2006)