Linking GST with public fund wastage

Published: Wednesday October 9, 2013 MYT 12:00:00 AM 

Updated: Wednesday October 9, 2013 MYT 7:44:08 AM

I REFER to the article by Tan Sri Dr Fong Chan Onn “Merits of the GST system” (The Star, Oct 5).

Dr Fong wrote of the merits of the Goods and Services Tax (GST) system and opined that it is the fairest method of taxing the general public.

In a pure GST regime, the poor tend to pay more (as a proportion of their income) but this could be made fair with modifications.

All that is well and good but where is all this extra revenue going? It logically should go to fuel Malaysia’s economic growth.

The dilemma with implementing the GST is will it lead to growth or will it breed more inefficiency and callousness in the government delivery system?

Malaysia has been blessed in not having major natural disaster calamities to contend with and there is an abundance of natural resources. So what does Malaysia suffer from in its journey to be a developed nation by 2020? The answer is staring in the faces of those who have read the Auditor-General’s 2012 report.

Much has been said and commented upon culminating in one of the Malaysian Anti-Corruption Commission (MACC) supervisory panels urging the Chief-Secretary to the Government Tan Sri Dr Ali Hamsa to form a special committee to investigate the wastage of taxpayers money.

The absolute lack of proper governance in the government service is a cause for concern. Whilst the regulatory authorities for the corporate sector have come up with the Corporate Governance code to instill the need for transparency, accountability and governance, there appears to be a disconnect in the civil service.

If the board of directors are held accountable by the regulators and stakeholders of the company, who is to be held responsible for such misconduct, negligence and ineptness at the federal or state government levels?

Notwithstanding the obvious wastage of resources, the more pressing concern is the perception in society that this involves,in almost all cases, endemic corruption.

Negligence and ineptness due to lack of moral responsibility in the discharge of duties have resulted in the plethora of findings in the AG’s report. These instances are not under MACC’s purview yet it gets bad press in spite of its efforts for not nabbing the “big fish”.

What is more difficult to fathom is that these are repeat findings yet there is a sense of malaise in the government machinery.

Is it because complacency has set in to the extent that officers know that their job is secure and the most that one will have to endure is a slap on the wrist as opposed to being demoted or removed from service as in the private sector? The punishment must fit the crime. Are we not Malaysia Inc.?

Much has been said by the Chief Secretary and politicians on remedial actions. Hopefully it is not just rhetoric.

Do we need public oversight panels to supervise and plough through the veracity of the follow-up actions required so that we have a more robust delivery system? If that is what is required, so be it.

There should be a breakdown to determine whether the weaknesses are due to incompetence and negligence or if there is an element of corruption. Hopefully that will address societal concerns on what is wrong in the machinery.

With the GST implementation, modified or otherwise, the poor will have to pay more. It is morally and ethically irresponsible to tax more yet have a continuance of such wastages due to ineffective governance.

The civil service on one hand has the best brains to drive this country forward. They should be commended for the good job done to-date as we are admired by our peers in the region.

Weed out the incompetents which invariably exist on the other end of the spectrum as evidenced by the audit findings. Repeat findings are inexcusable not to mention disgraceful. No wonder corruption perception indexes are negative as incorrect inferences are deduced.

As we move towards GST, let’s repair the leakages effectively. Malaysia does not have to suffer ‘fools’! We look forward to the next 50 years of Malaysia.

WALTER SANDOSAM

Kuala Lumpur