Deputy Health Minister Dr Abdul Latiff Ahmad today accused online news daily malaysiakini of lying in yesterday's report that his ministry had ordered significant cutbacks in its expenditure on healthcare for this year.

He told Parliament that the report was 'not true', but his colleague, Health Ministry parliamentary secretary Lee Kah Choon, conceded later in the afternoon that the cutbacks were made to ensure that the ministry's budget would not run into a deficit.

The about-turn by the ministry has outraged opposition member of parliament Chong Eng (DAP-Bukit Mertajam), who called for action to be taken against Abdul Latiff for misleading the Parliament.

During a question-and-answer session in the Dewan Rakyat this morning, Chong had asked the deputy minister to respond to malaysiakini 's news report that the Health Ministry would be hard pressed in meeting staff salaries in hospitals across the country unless it undertakes cost-cutting measures.

Cheaper alternative drugs

According to the report, the ministry would have problems covering staff salaries by as much as RM210 million due to a sizable reduction in its budget, which was ordered by the Treasury in an effort to curb the country's long-running budget deficits .

Malaysiakini

also reported that at least one hospital, Sarawak's Miri Hospital, had instructed its staff to use 'cheaper alternative drugs' as part of its cost-cutting measures to meet the shortfall.

Abdul Latiff rejected the claims.

"Whatever reported in malaysiakini is not true. Why does Yang Berhormat (The Honourable) trust the report?" he asked DAP's Chong in the House.

"If every Malaysian reads malaysiakini and trusts its reports like Yang Berhormat , then it would be troublesome for all of us."

He claimed that the issue had been blown out of proportion by 'quarters who are jealous (of us).'

Abdul Latiff then explained that under the Eighth Malaysia Plan, the Health Ministry had allocated RM5.5 billion for development expenditure and the allocation went up to RM9.5 billion after the plan's mid-term review.

"This (report) is definitely, and clearly, untrue. If we have money to build hospitals, surely we have money to pay our staffs. There is no problem with my (salary) payment too," he said.

However, Health Minister Chua Soi Lek, who had earlier responded to the malaysiakini report, was quoted by Chinese newspaper Oriental Daily today saying that the cost-cutting directive was to ensure all departments in the ministry used their allocations wisely and prudently.

In order to meet the massive salary shortfall, then Health Ministry secretary-general Alias Ali had informed all section and unit heads to take certain measures such as holding off the creation or filling of any new positions, unless critical and necessary, and to review overtime salary payments.

"In general, it was found that the ministry will face a shortage in the salary payments by as much as RM210.24 million for 2004," Alias said in a March 19 letter.

"Seeing that there will no additional allocation for 2004, this shortage will have to be supported by savings from the 'general objectives' area under the 2004 estimated administrative budget."

Other items identified for cutbacks under the 'general objectives' area are vehicles and utilities.

Doctors not 'money-crazy'

At the ministerial winding-up on the royal address debates later in the day, DAP's Chong brought up the matter again and slammed Abdul Latiff for not being informed about the going-ons in his ministry.

"The directive on the cutbacks was issued by the then ministry's secretary-general, and in fact the health minister had responded to the issue yesterday," she said.

"The deputy minister doesn't seem to know what is happening in his ministry. He has given false information to the House."

Chong then asked House speaker Dr Mohamed Zahir Ismail what action could be taken against Abdul Latiff, but this was ignored by the speaker.

The parliamentary debate today was wrapped up by Health Ministry's parliamentary secretary Lee as Abdul Latiff was not present in the afternoon.

Lee said the ministry's cutbacks were to ensure it would have a balanced budget next year.

"We have to balance our budget so that we do not run a deficit," he explained

He stressed that the ministry would ensure that staff salaries would not be affected by the cutbacks, and the review of its allocations for hospitals and other departments are specifically aimed at saving costs.

Lee also said most doctors in government hospitals are not "money-crazy" and that they are willing to work overtime without additional payments as they approached their work professionally.

On the question that the ministry has ordered hospitals to use cheaper alternative drugs following the cost-cutting measures, Lee assured that this would not endanger hospital patients.

"We do not need to give whatever medicine that is requested by the patients. There are other substitute medicines which have the same effect," he replied.