Friday 29 Mar 2024
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KUALA LUMPUR (Mar 26): The Ministry of Finance (MOF) has tabled a bill to establish a Public Sector Home Financing Board to manage a fund set up under the bill and administer the public sector financing facility.

Deputy Finance Minister Datuk Ahmad Maslan tabled the Public Sector Home Financing Board Bill 2015 to the parliament for the First Reading today.

"The bill will be tabled for second reading in this meeting," Ahmad Maslan said yesterday.

The parliament meeting is scheduled to be extended until next Thursday. Currently, the Supplementary Supply (2014)Bill 2015 is next on the order paper.

According to the bill, the Public Sector Home Financing Board will take over the functions of the Housing Loan Division of the MOF. Once this bill is passed and enforced, the Housing Loans Fund Act 1971 will be repealed.

The Board will be given power to borrow money, invest, set up or acquire any company under the bill, which is additional power vested to the Board, compared to that given to the MOF under the Housing Loans Fund Act 1971.

The Act enacted in 1971 provides for money to be raised by way of loan for the purpose of the Housing Loan Fund of the Federation, managed by MOF, and to make provisions relating to financial procedure governing the housing loan funds of the federal and state government

The Board's functions include managing the Public Sector Home Financing Fund(Fund) and administering the public sector home financing facility (Facility). It will also advise the minister on matters relating to the facility.

It is vested with power to utilise all properties of the Board in such manner as the Board may think expedient including raising moneys for the purpose of the Fund by scrutinising or mortgaging the properties.

It shall cooperate with the federal government and the state governments, local authorities, statutory authority or body corporate to perform its function.

The Board is also given the power to borrow any amount of money required for meeting its obligation with prior approval from the minister.

With the prior approval from the minister, the board is allowed to use the Fund established under the bill and also allowed to invest by depositing in banks, and by investing in securities issued by the government, securities issued by and fully guaranteed by the Central Bank of Malaysia.

Similarly, the board may establish or acquire any corporation established under the Companies Act 1965 and Trust Companies Act 1949 for the purpose of raising fund.

On the administration of public sector home financing facility, the Board can formulate any policies related to this and shall give effect to such policy.

The public sector home financing facility shall be granted to an approved eligible person - member of public service at federal, state and local level, MPs, senators, judges - to purchase properties such as dwelling house, land or to construct, or renovate a house.

The Board is also responsible for the collection and recovery of the repayment of the facility, which may be made by way of deduction of salary and pension by giving a notice in writing to the employer.

The proposed Board shall consist of maximum 11 members, including the Secretary General of Treasury as chairman, the Attorney General, Accountant General, Chief Executive officer who is an ex-officio member, no more than three members who are officers from federal public service and not less than two but not more than four members who shall be appointed by the minister.

The appointed members can hold office for a term of two years and shall be eligible for reappointment for a maximum period of three consecutive terms.

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