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01 April 2021

New Law Allows Government To Approve Expenditure Without Going Through Dewan Rakyat During Emergency


Govt allowed to approve supplementary expenditure without going through Dewan Rakyat


BERNAMA
1/4/2021

KUALA LUMPUR: A new law allowing the Finance Ministry, menteri besar or chief minister to approve any supplementary expenditure or withdrawal from the Consolidated Fund without going through the Dewan Rakyat or the State Legislative Assembly during the period of emergency, was gazetted yesterday.

The new law titled Emergency (Essential Powers) (Amendment) Ordinance 2021 comes into operation on March 31.

The ordinance, which was amended by inserting two new sections, namely 10A and 10B, was promulgated by the Yang di-Pertuan Agong pursuant to Clause (2B) of Article 150 of the Federal Constitution.

Section 10A states that any supplementary expenditure requiring an Act or Enactment or resolution of the House of Representatives or Legislative Assembly of a State, and withdrawal from any of the Consolidated Funds, for so long as the emergency is in force, may be made with the approval of the Treasury or the Menteri Besar or Chief Minister of a State, as the case may be in such manner as may be provided by any written law or any Treasury Instructions or Treasury Circulars.

Section 10B states that for so long as the emergency is in force, the provision relating to the application of monies provided in paragraph 4(b) of the Government Funding Act 1983 and paragraph 2(2)(b) of the Treasury Bills (Local) Act 1946 shall have no effect.

The ordinance was promulgated when the Yang di-Pertuan Agong was satisfied that immediate action was required to guarantee and preserve the security, economic life and public order.

On Jan 12, Istana Negara, in a statement, announced that the Yang di-Pertuan Agong consented to the Proclamation of Emergency to be implemented nationwide until Aug 1, as a proactive measure to curb the spread of COVID-19 in the country.

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