FINANCIAL PROCEDURE BILL

Order for Second Reading read.

4.26 p.m.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move,

"That the Bill be now read a Second time."

On the formation of Malaysia, the Singapore Financial Procedure Ordinance, 1959, ceased to apply and Financial Procedure Ordinance, 1957, of Malaysia became operative in Singapore. The main purpose of the Bill is to seek to re-enact the provisions of the Financial Procedure Ordinance, 1959, of Singapore with textual changes and changes of terminology taking account of Singapore's status as an independent Sovereign Republic and to provide that the Financial Procedure Ordinance, 1957, of Malaysia shall cease to apply to Singapore.

The opportunity has also been taken to include amendments considered desirable in the light of experience gained since 1959.

The most important variation from the Financial Procedure Ordinance, 1959, of Singapore is a new provision in section 7 (3) (d) enabling the Government to invest moneys in the securities of, or guaranteed by, any government or international financial institutions such as the World Bank, the International Monetary Fund, the International Bank for Reconstruction and Development, etc. Previously investments were limited to the Sterling bloc unless authority was obtained by resolution of the Legislative Assembly (Parliament). The flexibility to invest in a wider range of securities would enable the Government to take advantage of fields of investments where returns are higher as well as maintain reserves in hard currency.

In the transitional provisions under section 26, authority is sought to validate the sums of $42,522,019 and $650,000 which were approved by resolution of the Legislative Assembly in 1959 and 1960 by deeming them to have been approved by resolution of Parliament under section 9 of this Act. The earlier approvals were valid under Singapore's Financial Procedure Ordinance, 1959, but were not covered by the Financial Procedure Ordinance, 1957, of Malaysia and the intention is to regularise the position so as to put it beyond any doubt.

Section 12 (5) and section 13 (2) of the Singapore Financial Procedure Ordinance, 1959, provided for warrants issued in any financial year to lapse at the close of that year. This results in unnecessary administrative inconvenience and it is felt that there is no special reason why a warrant issued should lapse at the end of the financial year. These sections have therefore been deleted. Adequate safeguards will be made in the Financial Regulations to prevent abuses.

Provision for the powers to surcharge an officer for failure or negligence in carrying out his financial responsibilities to be brought within the purview of the appropriate Service Commission when a case is referred by the Minister is also provided under sections 20 to 23, as disciplinary control of public officers is involved.

Less important amendments include section 7 (4) which provides for interest from investments under the terms of any Trust to be paid to the credit of such Trust Account or as the Minister may otherwise direct.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. -[Mr Lim Kim San].

Bill considered in Committee; reported without amendment; read a Third time and passed.