Kuala Lumpur: The Public Service Department (PSD) is in the process of upgrading the Human Resources Service Circular (MyPPSM) by integrating a personal financial management module with the assistance of the Credit Counselling and Debt Management Agency (AKPK), a branch of Bank Negara Malaysia, into the Mind Transformation Programme (PTM) module.
According to BERNAMA News Agency, Public Service Director-General (KPPA) Tan Sri Wan Ahmad Dahlan Abdul Aziz highlighted that this module is a mandatory training requirement for all public officers to fulfill the criteria for confirmation into service. The government has delineated regulations under sub-regulation 13(1) of the Public Officers (Conduct and Discipline) Regulations [P.U. (A) 395/1993], emphasizing that officers must avoid incurring severe financial debt.
Reports have surfaced of over 4,000 civil servants falling victim to fraudulent loan schemes orchestrated by syndicates involving bank officials across various financial institutions. Wan Ahmad Dahlan stressed the importance of proactive measures by department heads to forestall such occurrences. He advised department heads to monitor salary deductions for debt repayment, ensuring the officer’s net income does not fall below 40 percent before approving any loan repayment salary deduction applications.
Disciplinary action may be warranted for department heads who negligently approve loan applications for officers with net incomes below the stipulated threshold. Wan Ahmad Dahlan urged both department heads and public officers to be vigilant, encouraging officers to report financial difficulties to receive proper assistance.
He recommended that department heads refer affected officers to AKPK, which can offer guidance and support, including debt repayment adjustment to promote financial stability. The Malaysian Anti-Corruption Commission (MACC) recently dismantled a syndicate engaged in corruption and money laundering, which facilitated personal loans for public servants with bad debts through bribery and financial consultancy firms.
Preliminary investigations revealed bank officials received bribes to ease the processing and approval of personal loans, underscoring the critical need for enhanced financial management training and preventive measures.