Lim: Country’s financial system to be changed to prevent manipulation
KUALA LUMPUR: The government plans to change Malaysia’s financial system to avoid manipulation of figures in the country’s financial statement.
Finance Minister Lim Guan Eng said the government planned to change the current cash-based system to an accrual one as soon as possible.
Admitting that the change would take time, Lim said the system would prevent the hiding of numbers, specifically those involving the federal debt.
“The new system will record income and expenditure in the financial statement without taking into account when they are received or paid.
“Compare this to the current system, which takes into account government guarantees only when they are paid, meaning that any manipulation would be known only three or four years later.
“The accrual system will enable us to understand the country’s financial situation in a quicker and more precise manner. This is what we are calling a reformasi of accounting and finances.”
Lim was speaking at the Bicara Khas Bersama Menteri Sunday. The hour-long programme, which began at 10pm, was hosted by Sayed Munawar Sayed Mohd Mustar.
Lim had said the actual national debt was RM1.087 trillion, more than the previous Barisan Nasional government’s published figure of RM686.8 billion, which took into account only the official figure.
Lim had also said 1Malaysia Development Bhd (1MDB) did not settle its debts using its own assets, with the government having paid more than RM7 billion for the company.
Lim said the change in the accounting system was one of three measures being implemented by the government to ensure that manipulation issues were not repeated.
He said other measures included allowing government files, especially the Finance Ministry’s, to be audited without hindrance, as well as appointing a company to probe and divulge matters which might have been hidden by the previous government.
Lim, who is DAP secretary-general, gave his assurance that he would support Prime Minister Tun Dr Mahathir Mohamad in ensuring that the Bumiputera agenda was not sidelined, but prioritised.
Citing the example of open tenders for projects, Lim said its implementation would not sideline Bumiputera contractors.
“When we say open tender, it means that it is open among the Bumiputera contractors, not open (to involve other contractors) as viewed by some. We want the issuance of contracts to be competitive.
“When I was Penang chief minister, although we practised an open tender system, more than 90 per cent were won by Bumiputera contractors.
“I think we should not look down on the abilities of Bumiputera contractors because like in Penang, they have demonstrated their willingness and ability.”