FORMER prime minister Najib Razak may be the subject of an open investigation into the missing RM18 billion in goods and services tax refunds, said Lim Guan Eng.

The finance minister told Parliament during the second reading of the Customs (Amendment) Bill 2018 today that only ministers were empowered to transfer GST revenue, collected from the Customs Department, from a trust fund into a consolidated fund.

He did not indicate whether the investigation would take the form of a royal commission of inquiry or a police probe.

He said such an investigation would be carried out only upon the completion of an internal probe.

Lim told the Dewan Rakyat that the money, which was supposed to be refunded to businesses that paid GST, had been spent.

He said an internal investigation seeks to uncover the extent of cabinet members’ involvement in the Finance Ministry, namely those empowered to make transfers into the consolidated fund.

“It is clear that the money was robbed by the previous government.

“There will be an open investigation into why the (then) finance minister (Najib) approved of this.

“We will get to the bottom of the matter. I’m certain there is a paper trail.”

Najib held the finance portfolio from 2008 until May 10 this year.

After GST was implemented in 2015, Ahmad Husni Hanadzlah and Johari Abdul Ghani served as second finance ministers, while Ahmad Maslan served as deputy finance minister. All three are from Umno.

The RM18 billion shortfall was revealed by an internal audit and a Customs Department inspection.

Lim said the department should not be blamed, as authority over GST refunds lies with his ministry.

“This is not Customs’ fault. Do no not blame their officers. How can they refund when there’s no money?”

The department has said the refunds amounted to RM9.18 billion last year, RM6.78 billion (2016) and RM610 million (2015).

Lim yesterday revealed that the current balance in the GST trust fund is a mere RM1.486 billion.

He said the previous Barisan Nasional administration’s failure to refund businesses has had a negative affect on commerce in the country.

He also affirmed that the ministry will refund businesses through other means.

The missing money was the mainstay of the nearly two-hour debate today, despite warnings from Dewan Rakyat Deputy Speaker Nga Kor Ming to opposition lawmakers to stick to issues relating to the Customs amendment bill.

Tanjong Karang MP Noh Omar and other lawmakers from BN lynchpin Umno protested against Lim’s use of the word “rompak”, or “rob”, when describing the BN government’s role in the missing GST refunds. – August 9, 2018.