This Part shall come into force on such date as the Minister may, by notification in the Gazette appoint; and the Minister may appoint different dates for the coming into force for different parts of Malaysia.

In this Part, unless the context otherwise requires-

"appointed date" means the date appointed under section 6A and if different dates are appointed under that section for different parts of Malaysia, the relevant date on which this Part comes into force for that part of Malaysia;

"civil aviation authority" means the Director General of Civil Aviation Malaysia, and includes an officer empowered by him to perform all or any of the functions conferred on the civil aviation authority under this Part;

"civil aviation services" includes all services connected with air navigation and Government aerodromes except for purposes of defence of the realm by air and for the purpose of this definition "Government aerodromes" shall not include any aerodrome of the armed forces or any visiting force;

"Development Fund" means the Development Fund specified in the Second Schedule to the Financial Procedure Act 1957 [Act 61];

"transfer date" means the date on which any designated property in a designated airport, which the Government of Malaysia was entitled to, is transferred to a company by virtue of the Airport and Aviation Services (Operating Company) Act 1991 [Act 467].

(1) There is hereby established a fund to be known as the Civil Aviation Fund (hereinafter referred to as "the Fund") which shall be controlled and operated by the Director General in accordance with this Part.

(2) The monetary transaction of the civil aviation authority shall be processed through the Fund, and for this purpose the following new item is hereby incorporated into the Second Schedule to the Financial Procedure Act 1957-



(3) On the establishment of the Fund and notwithstanding subsection 9(6) of the Financial Procedure Act 1957, the balances in the Trust Accounts in respect of the civil aviation authority except the Development Fund Trust Account shall be paid to the Fund.

(1) Notwithstanding the relevant provision of the Financial Procedure Act 1957 and the Development Funds Act 1966 [Act 406] there shall be paid from time to time into the Fund-

(a) such sums as may be appropriated from the Consolidated Revenue Account for the purposes of civil aviation services;

(b) such sums as may be appropriated from the Development Fund for expenditure on the development and expansion of the civil aviation services;

(c) all receipts in respect of any licence issued or of any works or services performed by the civil aviation authority which were paid or will be paid out of-

(i) moneys standing to the credit of the Fund; or

(ii) moneys appropriated to the civil aviation authority after the transfer date in respect of civil aviation services;

(d) moneys received from the sale or lease or hire of any property controlled by the civil aviation authority or acquired or produced out of-

(i) moneys standing to the credit of the Fund; or

(ii) any moneys appropriated before the appointed date in respect of civil aviation services;

(e) interest received from the investment of moneys standing to the credit of the Fund;

(f) moneys received by the Federation in respect of any matter incidental to the performance of any functions or the exercise of any powers conferred upon the civil aviation authority by this Act; and

(g) any other moneys received by the Federation in such circumstances as the Minister of Finance considers appropriate to be paid to the Fund:

Provided that in all cases any moneys received by the civil aviation authority between 1 January of the year of the appointed date and the date immediately preceding the appointed date which would have to be paid to the Fund under this subsection had the moneys been received on or after the appointed date, shall be accounted for in the Fund, subject to an amount not exceeding the receipts for the period of six months immediately preceding the appointed date.

(2) Payments into the Fund of moneys referred to in paragraphs (1)(a) and (b) shall be made in such sums and at such times as the Minister of Finance directs.

(1) Notwithstanding the relevant provisions of the Financial Procedure Act 1957 and the Development Funds Act 1966 moneys standing to the credit of the Fund may be applied by the Director General for the following purposes:

(a) payment of the remuneration of the Director General and other persons employed by the Government in the Civil Aviation Department including contributions to the Employees Provident Fund or other schemes approved by the Government in respect of such persons;

(b) payment for the cost of goods and services acquired for the purposes of the civil aviation services and for the acquisition of movable and immovable property incidental to the carrying out of works and services pursuant to this Act;

(c) payment to the appropriate Consolidated Accounts by ways of reimbursement in respect of-

(i) pensions, gratuities and other allowances granted under the pensions laws to the Director General and other persons employed by the Government in the Civil Aviation Department or their dependants;

(ii) interest and other charges and the principal repayments on loans raised and appropriated after the appointed date for the purposes of the civil aviation services; and

(iii) any moneys required to satisfy any judgement, decision or award against the Federation by any court or tribunal in connection with the operation of civil aviation services;

(d) payments in discharge of any liabilities incurred by the Federation on the civil aviation services; and

(e) payment of any other expenditure properly incurred or accepted by the civil aviation authority in the exercise of its powers and functions under this Act:

Provided that in all cases any payment by the civil aviation authority between 1 January of the year of the appointed date and the date immediately preceding the appointed date which would have to be made out of the Fund under this subsection had the payment been made on or after the appointed date, shall be accounted for in the Fund.

(2) Moneys standing to the credit of the Fund may be invested in accordance with subsection 8(3) of the Financial Procedure Act 1957.

The Minister of Finance, after consultation with the Minister, may before or during a financial year determine the maximum amount to be paid out of the Fund during that financial year in respect of development expenditure for civil aviation services.

There shall be paid out of the Fund into the Consolidated Revenue Account such sums as may be determined by the Minister of Finance after consultation with the Minister to be surplus to the requirements of the Fund in any financial year.

The Minister of Finance may if he considers it appropriate to do so-

(a) direct payment out of the Fund in such amounts and at such times as he specifies to the Consolidated Revenue Account or the Development Fund of sums paid into the Fund under paragraphs 6D(1)(a) and (b);

(b) direct the payment out of the Fund at such times as he specifies to the Consolidated Revenue Account of amounts representing interest at such rates as he determines upon so much of any amount to which the paragraph (a) applies that has not been repaid.

In the administration of this Act in relation to the civil aviation services the Director General shall pursue a policy directed towards achieving in respect of each financial year, such financial results as determined by the Minister in consultation with the Minister of Finance.

(1) Notwithstanding the relevant provision of the Financial Procedure Act 1957 and any regulations made and instructions issued under it, the books and accounts of the civil aviation authority shall be kept in accordance with generally accepted commercial accounting principles and practices.

(2) All the assets and liabilities of the civil aviation authority as on 1 January of the year of the appointed date which are not reflected in the financial accounts of the Federation shall be incorporated into the commercial accounts and the net worth of it shall be treated as capital of the Federation invested in the civil aviation authority on that date.

(3) The Director General with the concurrence of the Treasury shall issue directions and instructions as to the manner in which the books and accounts shall be kept and the form in which statements of accounts shall be submitted for audit.