Appointment of Chief Executive, Deputy Chief Executive and officers and servants of the Lembaga
(1) Subject to the approval of the Minister, the Lembaga may appoint on such terms as the Lembaga thinks fit a Chief Executive and a Deputy Chief Executive.
(2) The Chief Executive or if a Chief Executive is not appointed, an officer of the Lembaga to be nominated by the Lembaga shall be responsible for the day to day administration and management of the affairs of the Lembaga and shall exercise such duties and powers as may be entrusted or delegated by the Lembaga or the Chairman of the Lembaga, acting on behalf of the Lembaga.
(3) The Lembaga may appoint such officers and servants as it may consider necessary for the efficient conduct of the affairs of the Lembaga.
(4) The officers and servants of the Lembaga shall hold office for such period, receive such salaries and allowances and be subject to such terms and conditions of service including retirement benefit as may be determined by the Lembaga with the approval of the Minister.
Members, officers and servants to be deemed public servants
All members, officers and servants, as the case may be, of the Lembaga, the Investment Panel and any corporation established under section 23 shall be deemed to be public servants within the meaning of the Penal Code [Act 574].
Application of Public Authorities Protection Act 1948
The Public Authorities Protection Act 1948 [Act 198] shall apply to any action, suit, prosecution or proceeding against the Lembaga, Chairman, any member of the Lembaga, the Investment Panel, any member of the Investment Panel, officer, servant or agent of the
Lembaga or corporation established under section 23 and any member, officer, servant or agent of such corporation, in respect of any act, neglect or default done or committed by him in such capacity.
Power of Lembaga to make regulations
The Lembaga may with the approval of the Minister make regulations providing for all or any of the following matters:
(a) the manner of payment and collection of contribution, the minimum amount of monthly contribution which may be made under section 10 and any matters incidental thereto;
(aa) matters relating to the implementation of the veteran annuity scheme including the manner of payments of annuities and the provision for the nomination of person to receive any amount standing to the credit of the account of a serviceman or an officer in the event of his death;
(ab) the terms and conditions to be met by any retiring personnel or retired personnel of the regular forces of Malaysia or designated members of the volunteer forces in order to qualify for any benefits under this Act;
(b) imposition of fees in such cases as may be determined by the Lembaga;
(c) financial and accounting procedures;
(d) repayment of contributions under this Act, or of any part of such contributions, paid in error, together with any interest on such contributions;
(e) payment of contributions under this Act, or of any part of such contributions, omitted to be paid in error;
(ea) the management of the sums of moneys paid into the scheme pursuant to paragraph 11(2)(ba);
(eb) the manner and basis of computing the death and disablement benefits payable under the scheme and the
factors to be considered in respect thereof to arrive at the quantum to be paid;
(ec) the persons to whom death and disablement benefits are to be paid, including provisions for the nomination of such persons by a contributor, the manner of revoking such nomination and the circumstances in which such nomination is to be treated as having ceased to be in effect;
(ed) the giving effect to any order made under section 15B;
(f) the disposal of amounts which are unclaimed, unpaid or otherwise remain in the Tabung;
(g) the procedure for the withdrawal of amounts from the Tabung, including the evidence to be produced for the purposes of such withdrawal;
(ga) the terms and conditions including the interest rates payable, the amounts that may be loaned, the procedure relating thereto and any other matters incidental to the giving of such loans out of the Tabung;
(gb) (Deleted by Act A1506);
(h) any matters for the purpose of carrying out into effect the provisions of this Act.
Power of Lembaga to make regulations relating to conduct and discipline
(1) The Lembaga may, with the approval of the Minister, make such regulations as it deems necessary or expedient to provide for the conduct and discipline of the officers and servants of the Lembaga.
(2) The regulations made under this section may include—
(a) provisions for the establishment of appropriate disciplinary authorities for the different categories of officers and servants of the Lembaga;
(b) provisions for the establishment of a Disciplinary Appeal Board to hear appeals from the decisions of the disciplinary authorities; and
(c) provisions for—
(i) the interdiction with reduction in salary or other remuneration; or
(ii) the suspension without salary or other remuneration,
of an officer or servant of the Lembaga during the pendency of disciplinary proceedings.
(3) The regulations made under this section may create such disciplinary offences and provide for such disciplinary punishments as the Lembaga may deem appropriate, and the punishments so provided may extend to dismissal or reduction in rank.
(4) The regulations made under this section may, in prescribing the procedure for disciplinary proceedings, provide for an opportunity for representations to be made by the person against whom the disciplinary proceedings are taken before a decision is arrived at by the disciplinary authority on such disciplinary charge laid against such person.
Surcharge
(1) If it appears to the Lembaga that any person who is or was in the employment of the Lembaga—
(a) has failed to collect any moneys owing to the Lembaga for the collection of which he is responsible;
(b) is or was responsible for any payment from the Tabung of moneys which ought not to have been made or for any payment of moneys which is not duly approved;
(c) is or was responsible, directly or indirectly, for any deficiency in, or for the destruction of, any moneys, stamps, securities, stores or other property of the Lembaga;
(d) being or having been an accounting officer, fails or has failed to keep proper accounts or records; or
(e) has failed to make any payment, or is or was responsible for any delay in the payment, of moneys from the Tabung to any person to whom such payment is due under any contract, agreement or arrangement entered into between that person and the Lembaga,
the Lembaga shall serve on him a written notice calling on him to show cause why he should not be surcharged, and if a satisfactory explanation is not, within fourteen days from the date of service of the notice as aforesaid, furnished to the Lembaga with regard to the failure to collect, payment which ought not to have been made, payment not duly approved, deficiency or destruction, or failure to keep proper accounts or records, or failure to make payment, or delay in making payment, the Lembaga may surcharge against the said person a sum not exceeding the amount of any such amount not collected, such payment, deficiency, or loss, or the value of the property destroyed, as the case may be; and with regard to the failure to keep proper accounts or records, or the failure to make payment, or the delay in making payment, the Lembaga may surcharge against the said person such sum as it thinks fit.
(2) The Chairman of the Lembaga shall cause the Chief Executive to be notified of any surcharge made under subsection (1) and the Chief Executive shall thereupon notify the person surcharged.
(3) The Lembaga may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it otherwise appears that no surcharge should have been made, and the Chairman of the Lembaga shall at once cause the Chief Executive to be notified of such withdrawal.
(4) The amount of any surcharge made under subsection (1) and not withdrawn under subsection (3) shall be a debt due to the Lembaga from the person against whom the surcharge is made and may be sued for and recovered in any court at the suit of the Lembaga and may also be recovered by deduction—
(a) from the salary of the person surcharged if the Lembaga so directs; or
(b) from the pension of the person surcharged if the Lembaga so directs,
by equal monthly instalments not exceeding one-fourth of the total monthly salary or pension, as the case may be, of that person.
(5) For purposes of this section, “Chief Executive” means the Chief Executive appointed under subsection 19(1) and includes the officer of the Lembaga nominated under subsection 19(2).
Lembaga may establish corporation
(1) The Lembaga may from time to time, on the advice given by the Investment Panel and with the approval of the Minister and the concurrence of the Minister of Finance, by order published in the Gazette establish a corporation by such name as the Lembaga may think fit to carry out and have the charge, conduct and management of any project, scheme or enterprise which has been planned or undertaken by the Lembaga in furtherance of its functions under this Act, and the corporation may so do either by itself or by entering into partnership or any arrangement for sharing of profits, co-operation, joint venture or otherwise.
(2) Any moneys required for the establishment of a corporation shall be derived from the moneys made available for investment under paragraph 15(1)(a).
(3) The provisions of the Third Schedule shall apply to every corporation.
Lembaga may incorporate company
The Lembaga may, with the approval of the Minister and Minister of Finance, incorporate a company to carry on or engage in any activity approved or undertaken by the Lembaga for the purpose of this Act.
Provision for advancement from Federal Consolidated Fund
If the Lembaga is at any time unable to pay any sum of money standing to the credit of the contributor’s account to the contributor, the heir or the next of kin of the contributor, as required under this Act, the sum required to be so paid shall be charged on and advanced to the
Lembaga from the Federal Consolidated Fund and the Lembaga shall, as soon as practicable, repay to the Government of Malaysia the sum so advanced.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
