A BARISAN Nasional government agency earmarked to uplift the Indian community had approved funds amounting to RM18.91 million to 49 NGOs that had not met the requirements in 2017, the Auditor-General’s Report 2018 Series 1 revealed.

The report said that the Socio-Economic Development for the Indian Community Unit (Sedic) was poorly administered in the disbursal of funds meant for the development of the B40 group from the Indian community.

The report concluded that Sedic had poorly monitored and administered the implementation of programmes by civil societies. Evaluation on the societies’ execution of their programmes were also not properly done.

In addition to that, the report also highlighted the organisation’s poor record keeping.

“Based on the scope of the audit, it can be included that the programmes implemented are less than satisfactory because there was no proper record keeping and database to determine the outcome.”

Between 2014 and 2018, the unit under the Prime Minister’s Department had received a total of RM203.89 million in funding.

Sedic failed to provide files pertaining to the disbursal of RM10.77 million in 2014 to 20 civil societies for 23 programmes for audit purposes.

About 18 civil societies did not furnish full documents to account for a total of RM8.13 million.

Five civil societies and one private skills development centre, which owed the organisation RM2.86 million for failing to adhere to the terms of a memorandum of understanding, did not return the funds.

The report also found that 18 civil societies and four skills development centres did not open separate accounts.

Six civil societies which were supposed to execute six programmes for a total of RM 2.93 million had enlisted third parties to instead carry out the programmes. The third parties were paid RM1.18 million prior to the commencement of the programme.

The report also found 15 civil societies and one skills development centre had spent the allocated funds for other purposes and not within the determined scope of the programmes.

The report also highlighted the poor choice of groups selected as beneficiaries, poor administration and conflict of interest involving the director-general and the deputy minister in the Prime Minister’s Department. This is attributable to the absence of a Standard Operating Procedure.  

Sedic has since been rebranded to Malaysia Indian Transformation Unit (MITRA)

Among the recommendations given to Mitra is that it has to ensure that data and records are well kept and step up evaluation on programs implemented by civil groups. 

The A-G had also urged MITRA and the Economic Affairs Ministry to vet the needs of groups before disbursing  funds to avoid abuse by parties with vested interest.

Civil society groups that have failed implement programmes effectively should also be blacklisted, the auditor-general said. – July 15, 2019.