Guan Eng should stop claiming he helped settle RM630mil loan, says Donald Lim
Deputy Minister Datuk Donald Lim, who disclosed this, said it was wrong for Chief Minister Lim Guan Eng to mislead the public into thinking that the state had settled the loan on its own.
The deputy minister explained that the state debt was actually transferred to the Federal Government following a water restructuring agreement that was initiated even before Pakatan Rakyat came to power in Penang.
Under the rationalisation scheme, the state must pay interest-free rental of RM14.6mil annually for a period of 45 years, he said.
Lim said this in response to Guan Eng's claim that the Penang government had successfully reduced its debt by 95% from RM630mil in March 2008 to RM30mil in Oct last year through prudent and transparent financial management.
Guan Eng had said in an article uploaded on his blog that it was the highest debt reduction recorded in a state in Malaysian history.
Lim said Guan Eng should stop claiming credit that he has helped deplete the hefty loan.
“Guan Eng has not generated such a high revenue to pay off the huge debt within such a short period of time,” he added.
Lim said Guan Eng should be ashamed for telling half-truths for cheap political mileage.
“It goes to show that Guan Eng's Competency, Accountability and Transparency policy is a mere gimmick,” he added.
According to the Finance Ministry, Penang's outstanding loan of RM655.25mil owed to the Federal Government was rationalised by alienating state land-related water assets to Perbadanan Bekalan Air Pulau Pinang (PABB).
PABB, a state-owned company, entered into a water restructuring agreement with the Federal Government via Pengurusan Aset Air Bhd (PAAB) on June 2 last year.
Under the agreement, PAAB will become water asset owners after buying the water infrastructure from the states.
In exchange for these assets, PAAB will assume Penang's outstanding Federal water supply loans of an equivalent sum.
Posted by Admin Padang Temusu
on 2:33 AM. Filed under
