I refer to the Malaysiakini report RM7b stimulus to bolster economy.

This RM7b stimulus to bolster the economy appears to be a sound step in these difficult economic times but I seriously question its efficacy unless the government is able to publicise details of how the money will be spent.

Why do I sound incredulous?

Because it is common knowledge that corruption will get a fair share of government allocations through spurious inflated prices of projects etc. Sizeable allocations have been made for repairs and maintenance and this is a vulnerable area for corrupt practices. More money may simply mean more opportunities for corruption and the public may not benefit in the end.

The opposition ought to be asking for audits of repairs and maintenance contracts, open tenders in the newspapers and independent reviews which will ensure that the tendering process is fair and transparent and that the best contractors get the jobs. Tendering is not an art but a science and by now any government worth its salt should have in place procedures that prevent corruption.

Sadly, this is not the case and from time to time horror stories of corruption reach our ears through the most unlikely of sources as I discovered recently.

It is not unknown for repairs and maintenance jobs to be jacked up in price so that the final bill is many more times than the actual amount paid to the contractor for the work done. I am afraid much of the money will go into the coffers of the corrupt officials unless there is stringent control of how the money is to be spent and accounted.

In the Eurocopter deal that has attracted widespread criticisms, the PAC has exonerated those involved of any procedural abuse in the tender process. But it means nothing if the procedures themselves are not adequate as obviously is the case because the helicopters were not physically evaluated and no test flights were done.

How this can occur with a multi-billion ringgit purchase is indeed mind-boggling. Common sense would have dictated ( if not proper procedures ) that a test drive is a must for the purchase of any equipment and that the independent experts should evaluate if the helicopters are suited Malaysian conditions.

If there are suspicions the procedures are not adequate, they are not unfounded. The PAC should have evaluated if the procedures were adequate, and because of the scandal that surrounds the purchase, we ought to be calling for a review of the procedures to tighten internal checks against kickbacks and other forms of corruption. An audit of the procedures is inevitable to regain credibility.

The opposition, in calling for a full review of the tender process, should be relentless in its pursuit of a system of checks and balances that prevent fraud and corruption. The auditor-general has his horror stories of jacked-up prices and kick-backs and such corrupt practices will squander the government's budget in no time.

The suggestion that EPF members can reduce their contributions assuming they will spend the savings as Finance Minister Najib Razak suggests is not sound financial planning. EPF contributions are meant to help fund future retirement plans and their efficacy relies on the compounding effect of long-term savings.

Many Malaysians will not be able to retire on their EPF savings alone and reducing present contributions will exacerbate the problem. The present financial turmoil worldwide will also result in smaller EPF investment returns and compound future problems instead of the returns.

Retirement savings for the future should never be used as a strategy in the present economic crisis and people ought not to be duped into thinking the extra money will be helpful. They would do better to find the money from elsewhere than dip into their retirement savings. Using money meant for retirement is not a prudent measure.