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Wednesday, October 8, 2014

RM490 million gone as Putrajaya overpaid for BR1M, says think tank

A woman waiting for receive her portion of the Bantuan Rakyat 1Malaysia, or BR1M. A PKR think tank has revealed that Putrajaya overpaid RM490 million to 930,000 households last year due to the scheme. – The Malaysian Insider file pic, October 8, 2014.A woman waiting for receive her portion of the Bantuan Rakyat 1Malaysia, or BR1M. A PKR think tank has revealed that Putrajaya overpaid RM490 million to 930,000 households last year due to the scheme. – The Malaysian Insider file pic, October 8, 2014.
Putrajaya appears to have overpaid some RM490 million to 930,000 households last year in the form of the Bantuan Rakyat 1Malaysia (BR1M), PKR's think tank said today.
The Institut Rakyat today said this was based on conflicting figures given by Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar yesterday and Prime Minister Datuk Seri Najib Razak when announcing the 2012 BR1M allocations three years ago.
"Previously, the government boasted that BR1M had been given to those households earning less than RM3,000 per month, representing 5.2 million or 80% of all Malaysian households in 2012," the think tank's executive director, Yin Shao Loong, said in a statement.
"Did 3.2 million households suddenly clear the RM3,000 per month threshold? Is this a temporary effect of BR1M injections or a more serious statistical error on the part of government?
"This question is important because it has serious implications on the accuracy and accountability of government spending. It is also important for national clarity about the true size of low-income households."
Yin also said that figures from the Department of Statistics for 2012 showed that 38.5% of households earned below RM3,000 per month, while the Economic Planning Unit in the PM’s Department reported that 38.8% of households earned below RM3,000 the same year.
"If the statistics from the department is right, it may mean that the government overpaid BR1M to 930,000 households in 2013, representing an estimated overspend of RM490 million."
He questioned whether the amount paid was a statistical error or a more "cynical attempt" to gain votes ahead of the 13th general election in May last year.
"The government is slashing subsidies and implementing GST in order to improve its revenue, yet there could be millions or billions misspent due to miscalculations or statistical manipulation."
"The government and the Auditor General’s office must account for this," he said.
He added that Wahid needed to explain the discrepancies in the number and of the 3.2 million households that appeared to have "graduated" from the under-RM3,000 a month category.
Najib first introduced BR1M in 2012, providing cash aid of RM500 to households with income of RM3,000 and below.
The BR1M allowance to households with monthly income of RM3,000 and below has been increased from RM500 to RM650 this year.
- TMI

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