KUALA LUMPUR: Some of the operators of the National Service Training Programme (NS) are now saddled with debts amounting to millions of ringgit.
Some have even been declared bankrupt after being unable to service the bank loans taken to construct and upgrade the camps.
There are 81 NS camps nationwide, with the overall cost of building them projected to be more than RM1 billion. Each operator had forked out between RM12 million to RM19 million to build and run these camps for the programmes, which ran from 2004 to 2018.
These operators had taken out loans to buy or lease land, construct buildings and ready the infrastructure to fulfil conditions meted out by the government. Many, however, are now burdened by debt as well arrears owed to the Inland Revenue Board (IRB).
Association of Former NS Camp Operators (PKBPPKN) president, Mohd Rawi Mohd Arof, said at the beginning of the programme, there were 24 camps in operation.
This eventually rose to more than 40, with each camp able to accommodate between 400 and 450 trainees.
The three-month training programme covered physical modules, national identity, character-building and community service for youths, costing an estimated RM600 million a year. It was suspended in 2015 after a rationalisation exercise by the government.
NS 3.0 TO BE ROLLED OUT
The NS programme was reintroduced in 2016, with only 20,000 trainees. This, however, was short-lived after the government cancelled the programme in Aug 2018.
Last November, the government announced that it planned to roll out NS 3.0, with training to be conducted at 13 Territorial Army camps, instead of the existing NS camps.
On the previous NS camp operations, Mohd Rawi said operators were given a five-year contract until 2008, then a two-year renewal from 2009 before a three-year contract was added until 2013.
"After 2008, all camps were required to adhere to the minimum guidelines (SOC), with successful operators having their contracts renewed for three years from 2014 to 2016, with two added years until 2018," he told Berita Harian.
He said in the initial stages of operations, buildings in NS camps were allowed to be semi-permanent. However, after the 2008 SOC, operators were required to make the buildings permanent.
An amendment to the 2008 SOC in 2013 also included a number of improvements required by the operators.
"The cost of construction, upgrading and improvements were borne by the operators. We can say that each operator spent between RM12 million to RM19 million on their own camps. Many took out bank loans for these required works, until the NS programme was suspended in 2015.
"However, following negotiations, the government then agreed to pay RM70,000 a month to help operators shoulder the cost of maintaining the camps following the programme suspension," he said.
Despite being reintroduced in 2016 as NS 2.0, he said operators were still affected as the number of trainees only amounted to 20,000. Each camp now had only between 100 to 150 trainees compared to the 80,000 trainees in the original programme.
"NS 2.0 also wasn't mandatory and only lasted 65 days per series held once a year, compared to 84 days in the original programme. The government, however, agreed to pay monthly rent for the use of the camps during NS 2.0, and not per trainee as per the original programme.
"The monthly rent ranged between RM93,000 and RM322,000, depending on the camp location and grade, as determined by the National Service Training Department (JLKN). The contracts were then renewed for four years until 2020, with each camp required to adhere to the 2008 SOC (Amendment 2013) standards.
"Many operators worked hard towards meeting the standards. Again, many operators spent big money to improve and upgrade the camps. But when the NS was abolished in Aug 2018, the contracts also ended," he said.
OPERATORS DEMAND RM244 MILLION IN COMPENSATION
Mohd Rawi said the 57 camp operators have since asked the government for RM224 million in compensation after the programme was scrapped in 2018.
He said the amount involved 27 months of rent for the programmes which were supposed to be done in the contract period.
He said currently, 33 of the 57 operators are still adamant on taking court action to seek compensation while the rest have no means to do so due to a host of factors such as lack of finances, incomplete documentation.
Some, he said, have also passed away since then.
"This was discussed at the association's meeting last July after various negotiation efforts failed. The first group has already filed their claim and the rest will be done soon.
"The amount constitutes the remainder of the four-year contract, or 48 months, given by the government from 2017 to 2020 until the NS was abolished in 2018.
"The contract had already run for 21 months so we are seeking the remainder of the 27 months," he said.
He said the RM224 million will not be able to cover the losses by the operators, but can somewhat reduce their burden.
He said from the 81 camps in operation previously, seven in Sabah and Sarawak were given contracts to house the Border Regiment under the army.
"Thirteen more NS camps nationwide were given contracts as satellite prisons and temporary immigration detention depots, while four more had been abandoned by the operators, with some sold to others," he said.
'LEGAL ACTION IS OUR LAST RESORT'
Mohd Rawi said legal action to demand compensation is their last resort after negotiations with the government failed.
"Negotiations were made with various prime ministers including Tun Dr Mahathir Mohamad, then Tan Sri Muhyiddin Yassin and after that, Datuk Seri Ismail Sabri Yaakob.
"The issue was almost resolved at the end of 2022. The Defence Ministry had raised the issue to the Finance Ministry level to ask compensation to be paid to the operators in the form of 'ex-gratia'," he said.
Mohd Rawi did not disclose the compensation amount that was negotiated.
He said the issue met a stumbling block after the 15th General Election. On March 2023, the association received a letter from the Finance Ministry, saying that the application for 'ex-gratia' payment was not approved.
"We once again appealed to the government, including the prime minister. We also held discussions with government representatives last September but have yet to come to a resolution," he said, adding that court action was their last resort.