TUTORIAL 370
DATE: 9/4/2025
GROUP 2 – ARTICLES 102 TO 107 OF THE FADERAL COMSTITUTIONS
GROUP MEMBERS: 1. INTAN SAFIKA BINTI BAKTIAR (2023173155)
2. IRDYNA QAISYARA BINTI JAMRI (2023184313)
3. FATIN BATRISYA BINTI RAFFE ZAM (2023188599)
4. ALEYA MAISARAH MOHAMAD AMIN (2023173265)
1. Articles 102 – Power to authorized expenditure on account or for unspecified
proposes
Parliament shall have power in respect of any financial year;
(a) before the passing of the Supply Bill, to authorize by law expenditure for part of
the year.
(b) to authorize by law expenditure for the whole or part of the year otherwise than in
accordance with Articles 99 to 101
- Clause (a) states that it allows Parliament to approve interim or provisional funding to keep
government operations running if the annual budget (Supply Bill) hasn’t yet been passed.
This is typically done through a Vote on Account.
- Clause (b) states that it grants Parliament the power to approve exceptional or
supplementary expenditures even if they don’t follow the usual constitutional budgeting
process under Articles 99 to 101.
2. Articles 103 - Contingencies Fund
103. (1) Parliament may by law provide for the creation of a Contingencies Fund and for
authorizing the Minister charged with responsibility for finance, if satisfied that there has
arisen an urgent and unforeseen need for expenditure for which no other provision exists, to
make advances from the Contingencies Fund to meet that need.
(2) Where any advance is made in accordance with Clause (1), a supplementary estimate
shall be presented and a Supply Bill introduced as soon as possible for the purpose of
replacing the amount so advanced.
- It states that it allows Parliament to set up a fund for urgent and unforeseen expenditures.
Also, The Yang di-Pertuan Agong may make advances from it, later submitted to Parliament
for approval.
3. Articles 104 - Withdrawals from Consolidated Fund
104. (1) Subject to Clause (2), no moneys shall be withdrawn from the Consolidated Fund
unless they are:
(a) charged on the Consolidated Fund; or
(b) authorized to be issued by a Supply Act; or
(c) authorized to be issued under Article 102.
(2) Clause (1) does not apply to any such sums as are mentioned in Clause (3) of Article 99.
(3) No moneys shall be withdrawn from the Consolidated Fund except in the manner
provided by federal law.
- Clause (1) states that no money can be withdrawn from the Consolidated Fund unless it is:
(a) Charged on the Consolidated Fund
These are mandatory expenditures such as: pensions, debts, salaries of
constitutional officers (e.g. judges, Election Commission)
(b) Authorized by a Supply Act
This refers to the annual budget passed by Parliament.
(c) Authorized under Article 102
These are temporary or exceptional expenditures, such as: Interim spending before a
Supply Bill is passed (Art. 102(a)).
- Clause (2) states that there is an exception: Clause (1) doesn’t apply to certain amounts
mentioned in Article 99(3), which allows for advances and payments from trust funds and
other accounts that are not subject to annual appropriation.
- Clause (3) states that all withdrawals must be made in the manner set out by federal law.
This is where the Financial Procedure Act 1957 becomes relevant.
4. Articles 105: The Auditor General
105. (1) There shall be an Auditor General, who shall be appointed by the Yang di-Pertuan
Agong on the advice of the Prime Minister and after consultation with the Conference of
Rulers.
(2) A person who has held the office of Auditor General shall be eligible for reappointment
but shall not be eligible for any other appointment in the service of the Federation or for any
appointment in the service of a State.
(3) The Auditor General may at any time resign his office but shall not be removed from
office except on the like grounds and in the like manner as a judge of the Federal Court.
(4) Parliament shall by law provide for the remuneration of the Auditor General, and the
remuneration so provided shall be charged on the Consolidated Fund.
(5) The remuneration and other terms of office (including pension rights) of the Auditor
General shall not be altered to his disadvantage after his appointment.
(6) Subject to the provisions of this Article, the terms and conditions of service of the Auditor
General shall be determined by federal law and, subject to the provisions of federal law, by
the Yang di-Pertuan Agong.
- Clause (1) states that the appointment an Auditor General, appointed by the Yang di-
Pertuan Agong on the advice of the Prime Minister after consultation with the Conference of
Rulers
- Clause (2) states that reappointment and restrictions
A former Auditor General:
Can be reappointed to the same office and cannot be appointed to any other position
in the federal government, or any state government.
- Clause (3) states that Resignation and Removal
The Auditor General:
May resign at any time cannot be removed except, Oon the same grounds and in the
same manner as a Federal Court judge
- clause (4) states that Remuneration
Parliament shall provide for the salary and benefits of the Auditor General, and this
remuneration shall be charged on the Consolidated Fund
- Clause (5) states that Protection of Terms
The remuneration and terms of office cannot be changed to the Auditor General’s
disadvantage after appointment.
5. Articles 106: The Auditor General
106. (1) The accounts of the Federation and of the States shall be audited and reported on
by the Auditor General.
(2) The Auditor General shall perform such other duties and exercise such powers in relation
to the accounts of the Federation and of the States and to the accounts of other public
authorities and of those bodies which are specified by order made by the Yang di-Pertuan
Agong, as may be provided by federal law.
- Clause (1) explain that The Auditor General is constitutionally mandated to audit the
Federal Government accounts and State Government accounts. This includes all
government receipts and expenditures, ensuring transparency, accuracy, and accountability
in how public money is used.
- Clause (2) explain that The Auditor General's authority isn't limited to government
departments. Federal law may empower the Auditor General to: Audit statutory bodies, Audit
government-linked companies (GLCs), Audit public authorities or agencies and Audit any
other body specified by the Yang di-Pertuan Agong.
5. Articles 107: Reports of Auditor General
107. (1) The Auditor General shall submit his reports to the Yang di-Pertuan Agong, who
shall cause them to be laid before the House of Representatives.
(2) A copy of any such report relating to the accounts of a State, or to the accounts of any
public authority exercising powers conferred by State law, shall be submitted to the Ruler or
Yang di-Pertua Negeri of that State, who shall cause it to be laid before the Legislative
Assembly.
- Clause (1) states that The Auditor General is constitutionally required to submit audit
reports for example, on government spending, financial management, irregularities to the
Yang di-Pertuan Agong. Also, The King then ensures these reports are tabled in Parliament,
specifically the Dewan Rakyat (House of Representatives). This allows Members of
Parliament (MPs) and the public to scrutinize how public funds are used.
- Clause (2) explained that for state-related audits, the Auditor General must submit the
report to The Ruler (in monarchic states) or The Yang di-Pertua Negeri (in non-monarchic
states like Penang or Sabah). Also, the state head must then present the report to the State
Legislative Assembly, which functions like a mini-Parliament at the state level.
