Guan Eng lists Kelantan’s mounting arrears to Putrajaya

Updated 7 years ago · Published on 25 Oct 2018 4:56PM · 9 Comments

Lim says the advance owed by Kelantan is RM404.4 million and that the total actual debt owed by Kelantan is RM1.87 billion. – The Malaysian Insight pic by Kamal Ariffin, October 25, 2018.

THE Kelantan state government still owes RM1.46 billion to the Federal government as of September 30, with RM478.6 million still in arrears for which payment is behind schedule, Finance Minister Lim Guan Eng said in a statement today.

The RM1.46 billion amount is only the debt owed for development and infrastructure.

“The amount does not take into account the advance used for administrative costs, which is a form of financial assistance by the federal government for wages and state operations costs,” Lim said.

The state government has obtained additional loans from the federal government in the form of an advance to pay for such costs, he said.

“This was admitted by the Kelantan government in several official letters to the finance ministry,” Lim said, adding that the state government is the largest recipient of assistance and the largest debtor for any advances given to state governments.

“It must be stressed that only a few state governments have requested for advances to pay for wages/emolument and administrative costs,” he said.

States such as Selangor, Sabah, Sarawak and Penang have never had to borrow from Putrajaya as they never had problems paying for the wages of public servants.

Lim said the advance owed by Kelantan amounted to RM404.4 million and that the total actual debt owed by Kelantan is RM1.87 billion.

He added that the costs borne by the federal government thus far does not include per capita contribution and the roads built, as allocated under the federal constitution.

“I am shocked there are PAS leaders who can’t tell the difference between debt for development and for administration. There are also leaders who do not want to admit to the precarious financial state of the Kelantan government, which is at such a critical state that it is unable to pay the salaries of its civil servants,” Lim said.

He said the finance ministry wishes to correct the statement by PAS president Abdul Hadi Awang that the federal government has never considered Kelantan as a “beggar”.

“Instead, the finance ministry pays serious attention to the requests for financial assistance from the Kelantan government to pay for the salaries of its civil servants, and that is why the request was approved.

“Hadi should not stir up ill-will and play up sentiments against the federal government,” Lim said, adding that the government has transferred RM22.5 million in August to pay for the Kelantan public servants’ wages.

Lim said it is the right of the state government to determine whether it needs an audit of its financial state, but added that such negative statements from its leaders would affect future investments. – October 25, 2018.

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Comments

  • PAS, please put your tail between your legs and heed the advise of the MOF.
    If your MPs dont understand basic accounting, please just shut-up and dont do a PR Spin to turn around the story..
    Just accept the facts and receive any contribution from the federal government with gratefulness and sincerity.

    Posted 7 years ago by TTs Take · Reply

  • ACTUALLY CHANGE OUR LAWS TO HAVE A PROVISION THAT A STATE GOVERNMENT IN REGULAR APPEARS SHOULD BE SUSPENDE & PUTRAJAYA THEN SEND AN ADMINISTRATOR TO RULE THAT STATE & REFRESH THE STATE COFFERS?..

    Posted 7 years ago by MELVILLE JAYATHISSA · Reply

    • CORRECT "APPEARS" ABOVE TO READ AS "ARREARS". TQ

      Posted 7 years ago by MELVILLE JAYATHISSA · Reply

    • Exactly right... as the state government is unable to manage its own financial affairs, a Federal administrator must be appointed to manage the Kelantans financial affairs, whilst undertaking a restructuring of the states finances to ensure self-sustainability

      Posted 7 years ago by TTs Take · Reply

  • Ya . Bertaubatlah orang kelantan. Km semua memang tak malu pilih kerajaan PAS atas Nama Islam. Mata km semua sudah kena najis dan Najib . Tak malu punya orang kelantan

    Posted 7 years ago by TJ Lee · Reply

  • TJ LEE....please use proper words. It's the ruling PAS state government which is incompetent. The rakyat are GOOD people who have been cheated & fooled far too long. So don't make general statements to bash the rakyat. Feel free to condemn the PAS state government though.

    Posted 7 years ago by Hantoo Blacklord · Reply

    • t j lee...LGE is doing exactly that...hadi is his target...so calm down.

      Posted 7 years ago by Lipdah Lia · Reply

  • And again TJ LEE...I am a non Muslim....and I despice & hate people who bring religion in these issues.....you a festering hatred among Malaysia Baru....we don't need this

    Posted 7 years ago by Hantoo Blacklord · Reply

  • WELL DONE LGE...put that fellow hadi in his place.

    Posted 7 years ago by Lipdah Lia · Reply