Funding TAR UC without breaking basic principles of governance

ADUN SPEAKS | Sabah MCA Wanita Chief Pamela Yong who is also sitting on the board of governors of TARUC (Tunku Abdul Rahman University College) yesterday wrote a scathing opinion piece to attack the government decision to allocate RM40 million funding to a new foundation without a political background to provide financial assistance to TARUC students. 

However, she conveniently left out the main issue of TARUC funding - can the government provide public funds to a foundation owned by political party?

If the answer is positive, can the government now freely allocate public funds to any political party or foundation owned by political parties? This is why, that in line with the basic principle of governance, the government had decided to channel the funding to a new educational foundation without a political background to avoid any political interference in deciding on the distribution of the funds.

Pamela Yong only told half the story of TARC's (Tunku Abdul Rahman College) history. TARC was started in 1972 due to MCA’s rejection of the Merdeka University proposal which was the main wish of the Chinese community at that time. To quote former MCA president Tun Tan Siew Sin, “It is easier for hell to freeze than for the Merdeka University to be established in this country.” Such was the MCA stand on the Merdeka University that MCA is willing to go against the wishes of the majority in the Chinese community.

It was against this political background that TARC was founded. MCA also come to an agreement with Umno that the government will provide a matching RM1 for RM1 funding to TARC to reward MCA for its stance in opposing the Merdeka University. 

This funding is not a binding "social contract" between the government and the people as described by MCA but just a political compromise between Umno and MCA.

However, this RM1 to RM1 funding was breached when TARC was upgraded to TARUC in 2013 with a maximum annual government funding of RM60 million. This amount was halved in 2017 and 2018 to RM30 million. Why was MCA silent on the shrinking amount of the funding back then?

When TARC was established back in 1972, it was owned by the KTAR Trust Fund, a public trust. However, when TARC was upgraded to TARUC in 2013, the KTAR Trust Fund was transferred to the TARC Education Foundation, a private trust where all 15 voting members comprise of MCA current and former leaders.

MCA must explain why the public trust was quietly transferred to a private trust without public knowledge in 2013. Most of the TARUC funds come from public donations and government funds and it is morally wrong for MCA to privatise TARUC.

Pamela Yong also mentioned that government representatives sit on the board of governors. However, the most powerful decision-making body in TARUC is the board of trustees where all major decision on capital expenditures, operating expenditures and other major expenses need absolute approval from the board of trustees. All eight members of the board of trustees comprise of MCA leaders.

There is also a convention that the sitting MCA president be appointed as the chairperson of the TARUC board of trustees. This shows that MCA has full institutional control over TARUC.

By appointing all eight members who are sitting on the TARC Education Foundation to the TARUC board of trustees, MCA has violated the TARC Education Foundation constitution. At least 50 percent of the total number of the board of trustees must be third parties with no connection to the foundation or any of its founders.

Pamela Yong mentioned that the RM634 million of cash comes from over 40 years of prudent management. However, a quick check on TARC Education Foundation's financial statements will reveal that half of the RM634 million cash reserves were piled up over the last five years mainly from government funding.

The government funding provided to TARUC from 2014 to 2018 totalled RM231 million and this amount was not used for the benefit of the students. In fact, TARUC had already made a surplus before taking into account government funding. TARUC's surplus excluding government funding in 2014 was RM13.77 million, in 2015, RM14.7 million, in 2016 RM12.75 million, in 2017 RM15.5million, and in 2018 RM25.45 million.

All these surpluses together with government funding received by TARUC over the past five years totalled a staggering RM313.17 million which begs the question, "Why is TARUC not using this money for the benefit of the students?"

MCA has repeatedly mentioned that the RM634 million cash reserves will be used for new buildings and even new campuses. However, until today, MCA has failed to provide a development blueprint to explain to the public how they are going to use the RM634 million cash reserves.

Is there a development blueprint or has MCA made up its mind on what to do with the RM634 million TARUC is holding?

The RM40 million funding provided by the government will be better put to use to help needy TARUC students rather than handing it over to MCA adding to TARUC's already enormous cash reserves. In comparison, the RM40 million funding is just 6.3 percent of the cash reserves of TARUC is holding. Why is MCA objecting that the RM40 million be used to provide financial assistance to TARUC students while they figure out what to do with the RM634 million cash reserves?

MCA president Wee Ka Siong has threatened to raise tuition fees by 15 percent when the government announced a RM5.5 million allocation of capital expenditure to TARUC last year. This shows that MCA is using TARUC as a political tool to attack the government at the expense of the students despite the fact that TARUC is making a surplus every year even without government funding.

For the benefit and welfare for the students, it is best that MCA quit TARUC. Education and politics should be separated. It is not the duty of a political party to own and run an educational institution. TARUC's funding was raised from public and government funds and TARUC should be returned to the Chinese community and run freely without any political interference. It is time for MCA to quit TARUC and let TARUC blossom into a world-class educational institution.

CHONG ZHEMIN is state assemblyperson for Keranji.

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