PUTRAJAYA: In what is seen as an austerity drive after suffering heavy election losses, Umno has decided to cut back monthly allocations for its 191 party divisions and wings.

This means the divisions will not be getting its RM10,000 every month – which include RM2,000 each for Wanita, Youth and Puteri wings – following the party’s decision.

Umno secretary-general Datuk Seri Tengku Adnan Tengku Mansor confirmed issuing the letter to inform grassroots leaders on the matter.

“Yes, the headquarters has issued the letter. We will no longer be channelling money to divisions,” he told The Star when asked to confirm the authenticity of the letter which was circulated on social media.

According to the letter dated May 22 and signed by Tengku Adnan, Umno would halt the monthly allocations for its divisions and wings beginning May.

“However, it is hoped that the divisions and wings would continue with its operations as usual. Your cooperation on this matter is much appreciated,” said the letter.

Asked on Umno’s move, Tengku Adnan said: “This is an internal matter. There is no need to inform the public of our decision. We came to this decision after reviewing our finances.

“Whether this (cut) is permanent or temporary, we don’t know. We will see how things go later.”

In a statement on May 24, the Umno communications team said it was seeking to recover Umno funds seized by police while it was being transferred to the party’s acting leadership following the resignation of Datuk Seri Najib Tun Razak as president.

Apart from allocations from party headquarters, some states are also said to provide financial assistance to its divisions for operational costs as well as to conduct activities for members and to serve the people.

While some division heads refused to comment on this issue, others reacted better to the news, saying despite this, serving the people would continue to be on top of their agenda.

Pontian division chief Datuk Hasni Mohamad said this would not disrupt how his division operates but activities would be scaled down and without much fanfare.

“It’s a matter of getting used to it. I’m sure we can manage and the people will understand. But we must continue serving, that’s important,” he said. “Times have changed and we need to change along with the times.”

This was echoed by Ayer Hitam Umno chief Datuk Samsol Bari Jamali, who said that although his division would have to make some adjustments, service would continue to be a priority.

“Activities will now have to be on a smaller and more modest scale but our programmes must continue to have a strong and positive impact on the people,” he added.

Kuantan Umno division deputy chief Datuk Seri Abdul Hamid Nazahar also accepted the cut positively, saying that while cost cutting measures would be inevitable, the division would continue to ensure that money spent was for the people.

“This means that if we hold programmes, there will be no need for canopies and PA systems. If the programme is meant to distribute aid for the people, then all the money that is to be spent will go to the people instead of spending it on other things including food,” he said.

In Penang, Balik Pulau Umno acting chief Datuk Dr Muhammad Farid Saad said they would have to source for funding starting today.

“We are facing a new scenario for the first time in the history of Umno. Our first move is to look for volunteers who can help in handling the division’s administration, organising activities and recruiting members.

“We need to get things in place as the elections for the branch and division would begin soon,” he said, adding that a meeting would be called after Hari Raya to work out a detailed contingency plan.