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Abdullah's announcement that all ministries have been directed to study the effects of the US-Iraq war has taken all Malaysians by surprise as they had expected the government to have completed such contingency studies with the two-month fine-tuning of the multi-billion ringgit post-Iraq war economic stimulus package


Media Statement
by Lim Kit Siang

(Petaling Jaya,  Monday): The announcement by the Acting Prime Minister, Datuk Seri Abdullah Ahmad Badawi yesterday that all ministries have been directed to study the effects of the US-led invasion of Iraq on their respective agencies and the relevant sectors so that action could be taken to minimise its impact on the country has taken all Malaysians by surprise as they had expected the government to have completed such contingency studies with the two-month fine-tuning of the multi-billion ringgit post-Iraq war economic stimulus package.

Although Abdullah said these studies should be conducted speedily and accurately to enable the Cabinet to decide on the follow-up actions, he has given the impression that the government was caught flat-footed and off-guard by the US unleashing its illegal, immoral, unjust and unnecessary war against Iraq 12 days ago on March 20 - which cannot be the case when everybody knows that the reason why the first 2003 economic stimulus package completed two months ago had been held back and not announced earlier was because of the impending war in Iraq.

The second Finance Minister, Datuk Jamaludin Jarjis for instance had told foreign fund managers and brokers on 21st January 2003 that the economic stimulus package would be announced by the Prime Minister, Datuk Seri Dr. Mahathir Mohamad the following month in February. With the looming war in Iraq, there is merit in the argument that it would not make sense to announce any economic stimulus package, which would most likely be overtaken by events with the launching of the Iraq war.

Why then did Abdullah order all ministries to undertake a re-study of the impact of the US-Iraq war by the various ministries and government agencies - instead of immediately releasing the post-Iraq war economic stimulus package which had been held back for two months for the US unilateral-led attack on Iraq without UN sanction?

Is it to buy time for a further delay in the release of the post-war economic stimulus package so that it need not be presented to the current meeting of Parliament, on the simple ground that Parliament had already adjourned and is no more in session after April 8?

Abdullah, who is acting Finance Minister, should explain the further delay in making public the first 2003 economic stimulus package after it had been fine-tuned for more than two months in anticipation of the US-Iraq war.

He should give an undertaking that the post-Iraq war economic stimulus package would be presented to Parliament as a mini-budget for debate and approval in the current meeting. The two previous economic stimulus packages in 2001, one for RM3 billion and the second for RM4.3 billion, had set a most unhealthy precedent of being presented outside Parliament, which should not be repeated.

In presenting the post-Iraq war economic stimulus package, Abdullah should also submit a statement of audit and accountability for the two previous economic stimulus packages in 2001. This is because there is widespread concern about extensive abuse and misuse of public funds and gross wastage in the two economic stimulus packages, with estimates ranging from ten to as high as 50 per cent of abuse or wastage of the RM7.3 billion allocated in the two packages. Abdullah should also give firm assurances of efficiency and integrity in the post-Iraq war package which is expected to be bigger than the two previous packages, with an effective mechanism for parliamentary scrutiny and oversight.

Finally, Abdullah should make an effort to stamp an unique influence on the post-Iraq economic stimulus package by declaring an all-out war against the "First World Infrastructure, Third World Mentality" Malaysian malaise which he had so brilliantly diagnosed as the great impediment to Malaysia's economic
development and progress.

In fact, no measure could have a greater economic stimulus to the country than the launching of such a nation-wide war against "First World Infrastructure, Third World Mentality" Malaysian malaise, which would mean a full-scale combat against corruption, criminal breach of trust in high public places, abuses of power, inefficiency and incompetence!

DAP offers full co-operation in combating and eradicating the Malaysian malaise of "First World Infrastructure, Third World Mentality" which undermines Malaysia's international competitiveness and the efficiency and productivity of the Malaysian economy.

(31/3/2003)


* Lim Kit Siang, DAP National Chairman