Abuse of constituency funds: Lax system to blame

The lack of a proper monitoring system is the problem behind the misuse of constitutency funds, said Selangor executive councillor Teresa Kok.

The Kinrara state assemblyperson was commenting on the recent dragnet by the Malaysian Anti-Corruption Commission (MACC) on elected representatives for mismanagement of state funds.

Kok, who is also Seputeh DAP parliamentarian, said the current procedures in applying for funds is lax and a proper system must be put in place to keep tabs on the expenditure of state representatives.

The MACC charged six individuals last week for various offences of mismanagement and fraud.

They six were Sabak Bernam Umno MP Abdul Rahman Bakri, Rahman's special aide Mohd Rosli Busro, Yahaya Saari former aide to Selangor Menteri Besar Khalid Ibrahim, Wong Chuan How special assistant to Selangor executive councillor Ronnie Liu and former Teratai assemblyman Yap Soo Sun as well as Yap's aide Firdaus Abu Zarin.

"I agree that the guidelines are loose. It is because we sometimes need money in cases of emergencies like fires and floods, Kok ( left ) told Malaysiakini.

"If we to follow the guidelines set by the Ministry of Finance, which is very strict it would be better but it also means that we would never get the money until months later."

She added that under the ministry's guideline, the prices of the products procured are all marked up due to the late repayment period.

"As a result, it is difficult for representatives to come up with money. The procedures in the state are less strict. In Kinrara, for example, I had set up a bank account under the name of my service centre.

"Alternatively, one can also set up a company and the money can be directed into the company's account," she said.

In order to keep her account tidy and well-managed, Kok said she had also engaged an audit firm to monitor the finances.

In Selangor, the state representatives are given an annual allocation of RM500,000 for programmes in their constituencies. It is disbursed under three categories.

According to Kok, representatives are allowed to claim up to a maximum of RM2,500 for disbursement to the needy or to donate to certain organisations.

She said how this money is used is at the discretion of the assemblyperson, as long as it is not used for funding party activities.

"If someone (from my constituency) comes to me sick and needs urgent assistance I can use this money. The maximum I'm allowed to claim is RM2,500," said Kok.

There are no criterias under this category and it is at the discretion of the representative.

"The second category is where funds are allocated for people-centric programmes. The maximum we are given for this is RM20,000.

"I can organise the programme on my own or hire an event management firm or consultancy to do the work. These are usually for projects like 'open house' activities during festivals," said Kok.

She explained that the third category is where funds are allocated for small-scale projects such as the construction of small bridges or the tarring of a small roads in the constituency.

"The maximum we are allowed to claim is RM20,000. Under this category, we can only engage contractors registered with the Land Office and authorised by them under Class F," she said.

'Be diligent with funds '

The funds are usually given upfront before the commencement of a project or programme to ease the financial woes of the assemblyperson.

"I usually limit my programmes to about RM10,000. I cap the amount, otherwise we have to look for sponsors if it exceeds the allocation," said Teresa.

Kok reiterated that the current mechanism works but assemblypersons have to be transparent with their expenses and be diligent in their expenditure.

"I anticipated that we will be monitored by the MACC the day we took over the government and therefore, I reminded my staff that we should never allow room for them to find fault," stressed Kok.

Meanwhile, Barisan Nasional assemblyperson for Sementa, Abdul Rahman Palil ( below ) said that he had always been strict with the allocations provided to his constituency.

He said he would not spend more than RM5,000 on each function as he needed to stretch the funds to last until the end of the year.

"They (my constituents) can't just always rely on me to give them money. If their request is beyond the the limit, I would suggest they look for sponsors themselves.

"Besides, during (former menteri besar Dr Mohd Khir Toyo's) tenure, he instructed all (BN reps) to not exceed RM3,000 to RM5,000 for each function," he said.

However, Abdul Rahman conceded that there were representatives who had spent more than what was set out for them in the advisory.

"I can't understand why some of them would spend about RM30,000 to RM40,000 for one programme when it shouldn't be like that.

"Unless it involves a big function, then it is another matter," he said, refusing to go into details.

He also declined to elaborate on how the allocation of RM500,000 that he received annually from the land office is managed.

"I have my own personal assistant to manage my account," was all he said.