WRITTEN ASSIGNMENT QUESTION 6 (PAD320) PDF

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FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES DIPLOMA IN PUBLIC ADMINISTRATION (AM110 5D)WRITTEN ASSIGNMENT QUESTION 6:DISCUSS THE LOCAL GOVERNMENT ORDINANCE 1961. TO WHAT EXTENT THEORDINANCE HAS HELPED TO IMPROVE THE PERFORMANCE OF LOCALGOVERNMENT IN SABAH. YOU NEED TO ADDRESS THE MAIN PROVI...

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FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES DIPLOMA IN PUBLIC ADMINISTRATION (AM110 5D)

WRITTEN ASSIGNMENT QUESTION 6: DISCUSS THE LOCAL GOVERNMENT ORDINANCE 1961. TO WHAT EXTENT THE ORDINANCE HAS HELPED TO IMPROVE THE PERFORMANCE OF LOCAL GOVERNMENT IN SABAH. YOU NEED TO ADDRESS THE MAIN PROVISIONS IN THE LOCAL GOVERNMENT ORDINANCE 1961 THAT RELATE TO ITS FUNCTIONS AND FINANCIAL POWERS.

PREPARED BY: NO. 1

NAME NUR ASHIKIN BINTI MOHAMAD MIZAN

MATRIC NUMBER 2018684138

2

ATHIRAH BINTI SHAHRUM

2018655562

3

AIMAN FIKRI BIN MOHD ARIS FADZILAH

2018635294

4

NOOR ALZAM ARIF BIN NOOR AZHAR

2018893188

PREPARED FOR: MADAM NOR SUHAIZA BINTI MD KHALID

DATE OF SUBMISSION: 07 DECEMBER 2020 1

TABLE OF CONTENTS 1.0 INTRODUCTION.............................................................................................................. 3 2.0 FUNCTIONS PROVISIONS OF LOCAL GOVERNMENT SABAH ......................... 5 2.1 POWER TO ACCEPT GIFTS ......................................................................................... 5 2.2 PUBLIC PLACES, STREETS ETC., IN URBAN AREAS ............................................ 8 2.3 POWER TO CONTRACT ............................................................................................. 11 3.0 FINANCIAL POWER PROVISIONS OF LOCAL GOVERNMENT SABAH ........ 13 3.1 FEES............................................................................................................................... 13 3.2 ESTIMATES OF AUTHORITY ................................................................................... 17 3.3 AUDIT OF ACCOUNTS ............................................................................................... 20 4.0 CONCLUSIONS .............................................................................................................. 23 5.0 REFERENCES................................................................................................................. 24

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1.0 INTRODUCTION

Figure 1: Sabah state flag

Ordinance can be defined as an authoritative decree or direction and can define as a law set forth by a governmental authority. In Sabah, the local authorities were established through provisions under the Local Government Ordinance 1961. In the ordinance local government has stated the outlines and the responsibility and function of local councils in Sabah. A state ministry, the Ministry of Local Government and Housing, created for the first time after the state election in 1963, governs the operation of local authorities in the state. This Ordinance may be quoted as the 1961 Local Government Ordinance and shall enter to effect on a date to be appointed by the Governor by notice in the Gazette. Subject to the provisions of this Ordinance, Yang di-Pertua Negeri may create such district councils, town councils or municipal councils in any part of Sabah by means of an instrument published in the Gazette, subject to the provisions of this Ordinance, as may be deemed required or appropriate for the purpose of local government. Other than that, the certificate of establishment is also required as soon as possible after the publication in the Gazette of the Instrument providing for the establishment of an Authority, the clerk of the Cabinet shall provide the Authority with a certificate, formed by himself, stating that Yang di-Pertua Negeri, having duly authorised the establishment of that Authority and the Instrument, Consequently, the Authority is integrated into the name stated in the Instrument. In addition, the certificate referred to in subsection (1) shall be shown in a prominent location in the Authority's main office or ordinary meeting place.

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Furthermore, this local government ordinance has defined the role of all authorities in their local government. Each instrument establishing an Authority, if approved or necessary by this Ordinance to be incorporated into an instrument there specify the name of the Authority and the date on which it shall be created. However, every authority established under the provisions of this Ordinance shall be a body corporate having perpetual succession and a common seal and shall be capable in law of suing and being sued in its corporate title and of purchasing, holding and selling movable and immovable property.

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2.0 FUNCTIONS PROVISIONS OF LOCAL GOVERNMENT SABAH

2.1 POWER TO ACCEPT GIFTS

Figure 2: Power to accept gift logo

The section 36 of local government Ordinance 1961 give the right and authority to the Sabah local government to receive gifts or property either in the form of donations or financial assistance from any source. This gift or property can be used to assist the Sabah local government in carrying out its functions effectively. This is because, it can be used to carry out maintenance or improvement work for the benefit of the community such as to improve the quality of public facilities and also provide economic assistance especially to the needy people in the rural areas. For instance, local government can use the donations that they received to improve health facilities in Sabah. As we all know, Sabah is one of the states that are most affected by the covid-19 epidemic. Therefore, many parties participated in extending assistance to the local government of Sabah to help ease the burden of the government. For example, the Sabah Government through the Sabah State Disaster Fund has received a total of RM5.85 million 5

from government-linked companies (GLCs) to help deal with the covid-19 outbreak. Among the GLC companies involved in this contribution are Sabah Energy Corporation Sdn Bhd (SEC), Asian Supply Base Sdn Bhd, Rahnill Powertron Sdn Bhd, Rural Development Cooperative, Warisan Harta Sdn Bhd and two Sabah Foundation Group subsidiaries namely Benta Wawasan Sdn Bhd and Sabah Softwood Berhad. These donations will be used as much as possible to reduce the burden on the front lines and help those in need. In addition, this contribution is also used to ensure that the necessary health facilities can be provided. therefore, the state government will provide allocations to improve the infrastructure at the quarantine center set by the Ministry of Health Malaysia (MOH) due to the issue of insufficient quarantine center capacity. The Ministry of Infrastructure Development and the Ministry of Finance will be responsible for using the financial allocation that have been provided to improve and add quarantine center facilities. For example, this contribution will be used to upgrade facilities at the Kota Kinabalu Sports Complex in Likas so that quarantined people can be placed there as well as improve facilities at the quarantine place that is already available such as at the MOH Training Institute, Bukit Padang and the Malaysian Fire & Rescue Academy, Sabah. To conclude, the outcome of this provision which is the power to accept gift or donations as stated in the Ordinance of Local Sabah can helps to boost the revenue of the local authorities in Sabah. Local governments can perform their obligatory function effectively if they have a large revenue. This is because, although they have been given a special allocation to perform their mandatory functions, the amount is certainly small because the central governments need to distribute it to 13 other states. Due to that, it is certain that the programs, activities, and functions of local governments cannot be implemented well and are limited due to lack of resources. Therefore, it gives and advantage to the local government Sabah if they have the power to utilize the gift or donations that are given to them for the purpose of the wellbeing of the public. The surplus revenue of local authorities also can be used to assist them in expanding their functions. Even though every local authority will receive the budget for implementing their functions however, as we all know it is only for performing their obligatory task that has been set by the Federal government such as refuse collection, street lightning, and public health. Therefore, to expand their functions, local authority must diversify their sources of revenue to enable them in implementing discretionary functions. There are no special allocation or budget that will be given by the Federal government for implementing discretionary function as it was the option. The discretionary function given by the central 6

government to the local government should be utilized as much as possible to help improve the well-being of local people in Sabah for example by doing construction to fulfil the needs of public amenities and housing among the people of Sabah. Performance of local governments can be measured if they can exercise all the powers and responsibilities wisely and the wellbeing and prosperity can be achieved by the state.

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2.2 PUBLIC PLACES, STREETS ETC., IN URBAN AREAS

Figure 3: Power to have general control and maintenance public places logo

According to section 38(1) of the local government Ordinance 1961 in Sabah, the authority have general control and maintenance of all general control and maintenance of all public places such as playgrounds, parks, and gardens in terms of their facilities, and any damaged roads and streets. The authority also can open or control its use such as their rules or operations hours for the benefit of the population subject to any terms and conditions imposed during the granting of rights, by the Yang di-Pertua Negeri or by any land donor. The rights also will be given to the authority as trust to remain open or control its use for the benefit of the population subject to any terms and conditions imposed during the granting of rights, by the Yang di-Pertua Negeri or by any land donor. Other than that, based on section 38(2) stated that authorities may erect and maintain in any square or other public place, or building for public purposes. They are also empowered to allow them to temporarily isolate, close, restrict the use of other squares or public places or any part thereof for the time being for such purposes as the authority thinks fit from time to time. For instance, for celebrations of any festivals or independence days, or for constructions work. But all that has been stated above needs to get the consent of the Minister. 8

Furthermore, section 38(3) also stated that the authorities may create, construct, alter, repair and, if necessary temporarily close roads, highways, bridges, ferries, tunnels and tunnels in any urban area if such rights have been declared by the Yang di-Pertua Negeri to be in under his control. Section 38(4) stated that, in carrying out the authority given to him by subsection (3), an Authority with the approval of the Minister and in accordance with the Approved Scheme as specified in the Town and Country Planning Ordinance [Chap. 141.], which occurs in the area, may lay out and make streets; build and construct bridges, culverts and tunnels; turn, divert, discontinue or stop up any street; widen, open, enlarge or otherwise improve any street; and execute works of such general advantage to the health, convenience, or comfort of the inhabitants as to the authority with such sanction as aforesaid, seem desirable. Moreover, section 38(5) stated that, the authority will be given the right to use any State land required for the purpose of works as stated in subsections 4 and if any land is allocated is required, the Yang di-Pertua Negeri may, if requested by the resolution of the authority, obtain such land based on the provisions of the Land Acquisition Ordinance. Any compensation and expenses to be paid by the Government in respect of such acquisition shall be reimbursed by the said Authority. The study case that can be used as example of the section 38 is as stated in the Borneo Today news which is the effort of Ministry of Local Government and Housing (KKTP) to increase all public parks in Sabah to provide comfort to the recreational people by held a Working Visit to Beaufort Lake Park. Apart from the efforts to improve the public market in all areas of the Local Authority (PBT), the upgrading of public parks also needs attention. It is because, recreation areas are important for the community because they need to maintain health by doing exercise activities. Deputy Chief Minister cum Minister of Local Government and Housing Datuk Jaujan Sambakong also agrees to intensify the effort to upgrade these recreational parks because it is a good thing for our community. By upgrading recreational park, it can help to create employment opportunities and increase hygiene and safety for the local community. Other than that, such parks can not only be used for leisure activities but also community programs, family days and many more without had to pay an expensive rent. An upgraded recreational park also can enhance economic development because it can attract tourists to visit the park. Thus, this shows the important of maintenance of public places by the local government. In conclusions, the outcome of this provisions is the functions that has been stated in this section give the rights to the local government in Sabah to implementing any maintenance activities such as beautification of the park or repair public road for the purpose of public use. 9

Even though their power is limited, and their activities must be done with the consent of YDPA or Ministers however, it still can give the advantage to the local government in Sabah. It is because, it can help them to exercising their functions effectively which in terms of supporting the policy made by the Federal government such as to achieved National unity. For instance, recreational park that has been upgrade can attract the attention of community which consist of various races to do their sports and spend time with family there because of its comfortable environment. This will indirectly make the place of recreation as a medium that can be used to further strengthen the relationship between other races. Other than that, the power that are given through this section also enables the local governments to be responsiveness to the needs of their local community. Responsive to the needs and aspirations of the community interrelated with the participation in actual delivery of services whereby they are responsive to the needs that is delivered and required by the public. Local government is the 3rd level of government which causes them to be closer to their local community and more aware of their needs compared to the central governments. Therefore, with the authority given to perform their duties, it allows the local government of Sabah to provide for the needs of their community as needed. It is very important to aware of the needs of the community to avoid wastage in their expenditure from providing unnecessary and unimportant needs to the community. It can lead to effective and efficient delivery of services if what is being provided to the public is what the real needs of the public.

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2.3 POWER TO CONTRACT

Figure 4: Power to contract logo

In the Sabah Ordinance 1961 there are has been stated the functions of the Sabah authority that have the power to this contract making which is the Authority may enter into the necessary or desirable contract to perform any of its functions below or any other Ordinance. Ordinance Sabah provided that the Authority may not without the prior consent of the Minister or the Cabinet, as the case may enter a contract with a value in excess of the amount directed in respect of such Authority by the Cabinet. Any contract entered into by an Authority shall be concluded in accordance with the standing orders of that Authority, or in the absence of such contracts, in accordance with the instructions of the Minister, and in the case of contracts for the procurement of goods and materials or for the execution of works of a value of two thousand ringgit or more, such standing orders or directives shall be require that notice of the intention of the Authority to enter into the contract shall be published and tenders invited and regulate the manner in which such notice shall be published and such tenders given. This is also stated that every contract or tender that made by Sabah the local government must has consent from minister and has been legally signed the contract. However, this contract has no necessary to publishing notice. For instance, 14 OKTOBER 2018 Sabah local government authorities which is the Deputy Minister of public works completed the handover ceremony for the Mandalipau 11

National School Completion Project, Papar, among one of the projects for the Construction and Upgrading of Poor Schools Using Industrialized Building System (IBS) Method in Sabah. This is for upgrade the school in the rural area. Local government of Sabah has power to give the tender to the contractor to run the repair project. Other than that, It includes 37 schools with a project cost of RM163,441,400.00 and is divided into 12 packages and 12 contractors for the construction of Bad Schools in the State of Sabah, implemented by the Public Works Department of Malaysia. The overall scope of the project consists of 277 classrooms, 37 science rooms and 42 bathrooms. The Sabah State PWD directly oversees the construction of these 12 packages. This project also has been approval in budget 2018, because during the 2018 Budget Presentation it was raised that there are almost 2 thousand schools across the country that are in poor condition such as leaking roofs, damaged floors, perforated walls and equipment that has not been replaced for a long time. An allocation of RM2.5 billion has been announced for the purpose of repairing poor schools for a period of 2 years in 2018 and 2019 with a breakdown of RM500 million for poor schools in Peninsular Malaysia, RM1 billion ringgit in Sabah. In conclusion, the section that is stated above give the power to the Sabah local government to determine who can participate in this tender. This process allows the local government to get the best contract for the state government, through tender quotes for the year which will be done on the state government website itself. This will make it easier for the state government to select the best contractor among the best as well as suitable and coincide with the tender. After the selection has been made, the contractor will be divided into tasks to manage maintenance as well as will be provided with the need to perform their duties. The selection of the right and capable contractor can benefit the people of Sabah as stated in the implementation that has been done that can improve schools and can provide comfort to teachers and students in the interior of Sabah as well as can benefit citizens to be able to expand their area. This shows how important it is for local governments to have the power to involve with the selection of contractors to implement their initiatives because it is not only can affect the area under their administered but it will also give a good perception among the community if the program or function can be implemented well and can benefit the community. To conclude, a good perception of local governments allows them to carry out their functions more effectively because they will get good cooperation, support, and trust among the community.

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3.0 FINANCIAL POWER PROVISIONS OF LOCAL GOVERNMENT SABAH 3.1 FEES

Figure 5: Power to collect fees logo

Financial provision is one of the most important part in Local Government Ordinance 1961. It is show on how and where the Authority spend the money in Sabah. One of those financial provision from Local Government Ordinance 1961 is fees. Fee is the price that everyone must pay for rights or services that they need or want. It has been important financial provision because of the condition of Sabah that not advanced compared to other state like Kuala Lumpur, Selango...