PARLIAMENT The government spent more than RM300 million for "nothing" under its scheme to provide takaful insurance protection to seven million Bantuan Rakyat 1Malaysia (BR1M) recipients, PKR's Pandan MP Rafizi Ramli said today.

 

Based on a parliamentary written answer, the government had paid a consortium of insurance companies RM50 on behalf of every eligible recipient, which totals to RM350 million.

 

However, as at the end of September 2014, only 13,015 claims had been made under the i-BR1M scheme, amounting to RM42 million, being paid to the claimants.

 

As such, Rafizi said, the government had effectively paid RM300 million in the form of "net profit" for the insurance companies.

 

“The government does this on the pretext of providing services to the people, but the money went to companies instead. This has happened quite often, and this is the best example," he said.

 

Rafizi said that the government should have instead set aside over RM40 million in a special fund to help the people who are deserving of such takaful coverage instead of paying insurance companies directly.

"I am confident there are elements of profit being raked in by certain parties using the rakyat as excuses. The fact that the scheme has been discontinued is proof that the government wants to cover up this matter from being known to the public," he said.

Rafizi demanded that the individual who came up with the idea behind the scheme be identified and punished.

He also wanted to know the company that was paid commissions for introducing this scheme.

"This wastage of RM350 million needs someone to take responsibility, in order to determine if it had elements of carelessness alone or whether there are corruption elements as well," he said.