From Malaysiakini,

Treasury orders cutbacks, health expenditure slashed Yoon Szu-Mae 2:08pm Tue Jun 1st, 2004 The Health Ministry has ordered significant cutbacks in its expenditure after receiving a Treasury directive that there will be no increase in its financial allocation for 2004. As a result, the Health Ministry now finds that it will not be able to meet staff salaries across the country by as much as RM210 million, unless it undertakes cost-cutting measures. At least one hospital, Hospital Miri, has instructed its staff to use "cheaper alternative drugs" as part of its cost-cutting measures. Meeting the shortfall In order to meet the massive salary shortfall, then Health Ministry secretary-general Alias Ali has informed all section and unit heads to: 1. hold off the creation or filling of any new positions, unless critical and necessary, and 2.review overtime salary payments. "In general, it was found that the ministry will face a shortage in the salary payments as much as RM210.24 million for 2004," said Alias in a March 19 letter. "Seeing that there will no additional allocation for 2004, this shortage will have to be supported by savings from the ‘general objectives' area under the 2004 estimated administrative budget." Among the items identified for cutbacks under the ‘general objectives’ area are vehicles and utilities. Departments are also asked to reduce the frequency of staff attendance at conferences and meeting, encourage the use of government premises for meetings and training programmes, ensure that staff transfers are based on need, and to "conserve the use of water, electricity, telephone and department vehicles". The budget for replacement vehicles is also earmarked for a reduction, from RM50 million to RM20 million. The ministry announced a cap on funding for non-governmental organisations to RM5 million, while departments are not allowed to hire new trainers, except for scholarship expenses already given prior approval by the Treasury. When contacted, Health Ministry's deputy secretary-general (finance) Ahmad Hashim told malaysiakini that he could not comment on the cutbacks as the information was strictly "for internal use only". Budget deficit These cuts have come amidst the announcement last week by Health Minister Chua Soi Lek that the present doctor-patient ratio in government hospitals stands at a disconcerting one to 5,000. Only 75 percent of positions for doctors in government hospitals have been filled, or 10,195 out of 13,457 positions. Despite the lack in resources, the government has also recently announced its intention to implement a two-tier health system within publicly-funded hospitals. Government hospitals will soon accommodate ‘private wings’, which allow the rich to get faster, and possibly better, treatment, at a price. At a budget consultation early this month, Prime Minister Abdullah Ahmad Badawi announced intention to slash this year’s budget deficit from 5.4 percent to less than 4.5 percent, through a reduction in government expenditure. It is learnt that the cutbacks will affect all ministries. However, prior to this, it was only known that the government would be cutting back on development expenditures, not essential services. "I believe the private sector can accommodate whatever reduction in government's expenditure as again in the past," Abdullah had said.

How on earth did we come out with a $210 million deficit? There must be something else wrong other than those mentioned in the above article. All this when there is still a substanstial number of positions to be filled as highlighted repeatedly in the press. What went wrong?

MISMANAGEMENT, I say. With this huge budget deficit, I think that it would be appropriate to launch an inquiry into this matter. This will enable us to pinpoint the cause of such a financial mess. Blabbering about nitty gritties like overtime allowances is unjustified and uncalled for. This budget deficit is surprising when many hospitals and clinics nationwide still appear under-equipped and poorly staffed. Where did the money go to? Just vehicles, utilities and courses? Utter rubbish.

The Health Ministry's accounts need to be audited immediately. There is more to it than meets the eye. I am sure we will discover many skeletons in the closet! Ultimately, the MOH staff should not suffer when we do not really know the reasons for such a huge deficit. Perhaps this should even raise some eyebrows at the Anti-Corruption Agency.

We want answers not some lame internal directives encouraging thriftiness! It is time for accountability lest a further suffering for its already unhappy staff.