New ordinance gazetted to facilitate special funding in COVID-19 fight

THE Government has today gazetted a new ordinance that allows the Prime Minister and Menteri Besar or Chief Ministers to pass a supplementary budget or use consolidated funds without approval from lawmakers as long as the state of Emergency is in force.

This is in relation to the Clause (2B) of Article 150 of the Federal Constitution following the proclamation of Emergency by the Yang di-Pertuan Agong on Jan 11.

To recap, Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ ayatuddin Al-Mustafa Billah Shah had decreed that a State of Emergency be implemented to control the COVID-19 outbreak in the country from Jan 11 till Aug 1 (or an earlier date).

According to the Federal Government Gazette, the Emergency (Essential Powers) (Amendment) Ordinance 2021 which comes into force today (March 31) will incorporate two new sections, namely 10A and 10B.

Section 10A which entails temporary financial provision reads:

“Notwithstanding any provision in the Federal Constitution and the Constitution of a State relating to expenditure charged on the Federal Consolidated Fund or the Consolidated Fund of a State, any supplementary expenditure requiring an Act or Enactment of the House of Representatives or Legislative Assembly of a State and withdrawal from any of the Consolidated Fund or Consolidated Fund of a State 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 relating thereto for the time being in force”.

Meanwhile, Section 10B which deals with the non-application of procedures for application of moneys raised or received reads:

“For so long as the Emergency is in force –

(a) The provision relating to the application of moneys provided in paragraph 4(b) of the Government Funding Act 1983 (Act 275); and

(b) The relating to the application of moneys provided in paragraph 2(2)(b) of the Treasury Bills (Local) Act 1946 (Act 188),

shall have no effect”. – March 31, 2021

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