Better transparency needed for financial aid rollout, says TI-M

Better transparency needed for financial aid rollout, says TI-M

Transparency International Malaysia says the government should table its economic packages, totalling more than RM500 billion, when Parliament sits.

Transparency International Malaysia has called for updates on the disbursement of financial aid to groups and individuals under the various government stimulus packages . (Bernama pic)
PETALING JAYA:
The government must provide updates on the disbursement of financial aid under the various stimulus packages introduced since last year, says Transparency International Malaysia.

TI-M president Muhammad Mohan urged the government to table the economic packages, which cost the government over RM500 billion in total, in the upcoming Parliament sitting.

The disbursement updates should also be submitted to the Public Accounts Committee, he said in a statement.

Mohan said based on their latest report on the effectiveness and transparency of government aid for small and medium enterprises (SMEs), TI-M recommended that the government demonstrate greater transparency, integrity and accountability in the distribution of aid to the public.

The study found that 64% of SME respondents were confident in the transparency, integrity and accountability in the federal government aid process.

While most of the SMEs were generally aware of federal government aid through schemes such as the Prihatin and Penjana economic stimulus packages, 65% of the SME respondents were however unaware of state government aid.

The study also suggested that 52% of the respondents said they diverted the funds they received towards operational expenditure other than for the reasons originally spelt out in the packages.

SMEs also noted challenges such as unclear procedures, overly rigid criteria and limited quota.

Mohan said only 8% of the SMEs interviewed claimed that bribery and corruption were necessary to obtain the funds under Penjana and Prihatin.

This lower level of corruption could be due to the online method used to apply for aid instead of direct contact between the SMEs and public officials, he said.

He recommended that the government look into loosening eligibility criteria and reducing bureaucracy to improve the delivery of aid in the future.

He said subsidies and aid should be centralised and have similar processes or mechanisms to avoid confusing the public.

“The government should also engage more closely with trade associations and trade unions to understand the real and practical issues faced by SMEs on the ground,” he said.

“Public communication channels such as social media and mainstream platforms should also be utilised to convince the public that aid programmes are consistently monitored and audited.”

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