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One must not lose sight that Kwan – Kumpulan Wang Amanah Negara – is a public trust fund. This means that it is established for public purposes by the government by way of legislation which creates the trust, sets out its legal terms, and assigns rights and duties to different persons or no parties.
Section 6 of the National Trust Fund Act (Act 339) sets out the purposes for which moneys standing to the credit of the fund can be applied or used before the recent amendment vide the Emergency (National Trust Fund) (Amendment) Ordinance 2021), the purposes were:
(a) any of the purposes of the Development Fund as specified in the First Schedule to the Development Funds Act 1966 [Act 406]; and
Little known trust fund thrust into the limelight | The Malaysian Insight themalaysianinsight.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from themalaysianinsight.com Daily Mail and Mail on Sunday newspapers.
LETTER | Use of public funds must adhere to highest accountability standars
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LETTER | The latest emergency ordinance, which amended the National Trust Fund Act 1988, is part of a disquieting trend in the ordinances passed thus far since Jan 13 this year. With a common theme of being able to tap into funds without check and balance, this raises concerns about the potential for serious abuse and corruption, especially in this time of crisis for Malaysia.
The National Trust Fund is reported as having RM16.9 billion in assets as of the end of 2017, with Petronas as its most notable contributor. While, under the original act, the funds can be utilised in the name of the Development Funds Act 1966 to purchase public health supplies, the funds still needed to be disbursed through Parliament, a key element for check and balance.