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AG's Report: Foreigners with Malaysian spouses surprise recipients of insurance scheme for B40

KUALA LUMPUR: The 2019 Auditor General's Report Series 2 found that foreigners with Permanent Resident (PR) status had become beneficiaries of the mySalam insurance scheme.

The scheme launched on 2019 was intended for B40 groups and recipients of the Bantuan Sara Hidup (BSH) aid, according to data from the Inland Revenue Board (IRB).

However, the report found that 114 claims involving RM152,050 were paid to foreigners with PR status.

Checks by the Audit Department found that the recipients were spouses to BSH recipients.

"The Finance Ministry acknowledged that when they requested data from IRB on BSH recipients, the ministry did not ask for recipients with foreign spouses to be excluded.

"The Finance Ministry and IRB have taken necessary to prevent a repeat of the matter," read the report.

According to the report, as of Dec 31 last year, RM110.90 million has been disbursed for 116,976 claims under the MySalam scheme.

RM69.81 million was paid out for critical illness claim while RM18.79 million was disbursed for hospitalisation.

The report also said RM22.30 million had benefited those hospitalised and quarantined due to Covid-19.

The report concluded that MySalam scheme provided takaful and income replacement coverage to the B40 group against certain critical illnesses and as a result of hospital admission.

However, it noted that the mySalam insurance scheme lacked a clear check and balance mechanism to ensure accountability and transparency of reporting.

It added that the governance of private trust accounts does not provide for adequate internal controls and that the MySalam Trust Instructions (Arahan Amanah) clause was incomplete and insufficient.

"It does not clearly state the role of Finance Ministry and reporting requirements to the Cabinet, Parliament and stakeholders.

"Standard Operating Procedures (SOPs) detailing the jurisdiction of Board of Trustee was not established.

"Furthermore, the expansion of the MySalam scheme did not amend the Trust Instructions," the report said.

The National Audit Department proposed for the Finance Ministry and Board of Trustees to account mySalam funds of RM2.370 billion into the Consolidated Fund account.

They were also urged to establish an Akaun Amanah Kerajaan to manage the fund.

"The Finance Ministry must manage the Akaun Amanah MySalam to ensure clear governance, accountability and monitoring in the management of mySalam funds.

"The ministry must also establish SOP detailing the powers and limits of Board of Trustees as set in the Trust Instructions which will smoothen the governance of mySalam."

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