PSD Improving MyPPSM For Better Financial Management By Public Officers - KPPA

By Samantha Tan Chiew Tieng

PUTRAJAYA, Jan 25  (Bernama) -- The Public Service Department (PSD) is currently enhancing the Human Resources Service Circular (MyPPSM) to incorporate a personal financial management module, developed in collaboration with the Credit Counselling and Debt Management Agency (AKPK) under Bank Negara Malaysia, into the Mind Transformation Programme (PTM) module.

Public Service Director-General (KPPA) Tan Sri Wan Ahmad Dahlan Abdul Aziz said the module is one of the mandatory training programmes required for all public officers to meet the requirements for confirmation into service.

He said the government has outlined the regulations that need to be complied with by all public officers through sub-regulation 13(1) of the Public Officers (Conduct and Discipline) Regulations [P.U. (A) 395/1993] which provides that an officer shall not by any means cause himself to be in serious financial debt.

Expressing concern over reports of more than 4,000 civil servants being deceived by loan offers orchestrated by syndicates involving bank officials at various financial institutions in the country, Wan Ahmad Dahlan emphasised the need for early intervention by department heads to prevent such incidents from recurring.

"Early intervention needs to be done by department heads in monitoring salary deductions of officers for debt repayment. If it is found that the net income on the salary slip of the officer is less than 40 per cent, then the salary deduction application for loan repayments should not be approved," he said in an interview yesterday.

Wan Ahmad Dahlan said disciplinary action could be taken against department heads for negligence if they approved applications of officers with net income of less than 40 per cent.

He expressed the need for department heads to be more careful in approving officers to apply for loans and also for public officers to report their financial debt problems to their department heads to get appropriate help.

One of the measures department heads can recommend is to refer the affected officer to AKPK, he said, adding that the agency can provide appropriate advice and assistance to officers concerned, including readjusting their debt repayment to ensure a more stable and sustainable financial position.

Last Jan 14, the Malaysian Anti-Corruption Commission (MACC) thwarted a syndicate involved in corruption and money laundering activities, allowing public servants with bad debts to secure personal loans from local banking institutions.

Preliminary investigations found that some officers at banking institutions received bribes from financial consultancy firms in exchange for facilitating processing and approving personal loans for clients.

-- BERNAMA