Establishment of the Fund
(1) For the purposes of this Act there is established a fund to be administered and controlled by the Lembaga.
(2) The Fund shall consist of—
(a) such sums as may be provided from time to time for those purposes by Parliament or the Legislative Assembly of the State;
(b) such sums as may be allocated from time to time to the Lembaga from loan funds;
(c) moneys earned by the operation of any project, scheme or enterprise financed from the Fund;
(d) moneys earned or arising from any property, investments, mortgages, charges or debentures acquired by or vested in the Lembaga;
(e) any property, investments, mortgages, charges or debentures acquired by or vested in the Lembaga;
(f) sums borrowed by the Lembaga for the purpose of meeting any of its obligations or discharging any of its duties; and
(g) all other sums or property which may in any manner become payable to or vested in the Lembaga in respect of any matter incidental to its powers and duties.
(3) In this section the expression “loan funds” means such sums as may be made available from time to time to the Government of the Federation or of the State by way of loan.
Balancing of revenue account
It shall be the duty of the Lembaga to conserve the Fund by so exercising and performing its powers, functions and duties under this Act as to secure that the total revenues of the Lembaga are, subject to any directions given by the Minister under section 8, sufficient to meet all sums properly chargeable to its revenue account, including, without prejudice to the generality of that expression provisions in respect of its obligations under sections 17 and 19 and depreciation and interest on capital, taking one year with another.
Reserve fund
The Lembaga shall establish and manage a reserve fund within the Fund.
Expenses to be charged on the Fund
The Fund shall be expended for the purpose of—
(a) paying all expenses incurred under section 25;
(b) granting loans under section 27;
(c) paying any expenses lawfully incurred by the Lembaga, including survey, legal and other fees and costs, and the remuneration of officers and servants appointed and employed by the Lembaga, including superannuation allowances, pensions or gratuities;
(d) paying any other expenses, cost or expenditure properly incurred or accepted by the Lembaga in the execution of its duty or in the discharge of its functions under section 4;
(e) purchasing or hiring plant, equipment, machinery, stores and any other materials and acquiring land and erecting buildings and carrying out any other works and undertakings in the execution of its duty or in the discharge of its functions under section 4;
(f) repaying any moneys borrowed under this Act and the interest due thereon; and
(g) generally, paying any expenses for carrying into effect the provisions of this Act.
Expenditure and preparation of Estimates
(1) The expenses of the Lembaga up to such amount as may be authorized by the Minister for any one year shall be defrayed out of the Fund.
(2) Before the beginning of September of each year the Lembaga shall submit to the Minister an estimate of the expenses (including those for development projects) for the following year in such form and containing such particulars as the Minister may direct; and the Minister shall before the beginning of that following year notify the Lembaga of the amounts authorized for expenses generally or of the amounts authorized for each description of expenditure.
(3) The Lembaga may at any time submit to the Minister a supplementary estimate for any one year and the Minister may allow the whole or any part of the additional expenditure included therein.
(4) The Minister may direct the Lembaga to submit a copy of the estimate or supplementary estimate, as the case may be, to the Government of the State or to any other person as may be specified in the direction.
Accounts and audit
(1) The Lembaga shall keep proper accounts and other records in respect of its operation and shall prepare statements of accounts in respect of each financial year.
(2) The accounts of the Lembaga shall be audited annually by the Auditor General or other auditor appointed by the Lembaga with the approval of the Minister.
(3) After the end of each financial year, and as soon as the accounts of the Lembaga have been audited, the Lembaga shall cause a copy of the statement of accounts to be transmitted to the Minister or, on being directed so to do by the Minister, to the Government of the State or any other person, together with a copy of any observations made by the Auditor General or other auditor appointed under subsection (2) on any statement or on the accounts of the Lembaga.
(4) The Minister shall cause a copy of every such statement and observations to be laid before the Dewan Rakyat.
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).
