BN used GST refunds to cover shortfalls, panel finds

Chan Kok Leong Chan Kok Leong Updated 4 years ago · Published on 11 Jul 2019 7:00AM · 13 Comments

Repealing the GST was one of Pakatan Harapan’s election promises last year and when it came into power, the government discovered that RM18 billion was ‘missing’ from a GST refund account. – EPA pic, July 11, 2019.

THE previous Barisan Nasional government used money due to taxpayers for goods and services tax (GST) refunds to pay for other expenses because of a shortfall in its income, a parliamentary select committee has found.

The Public Accounts Committee (PAC) found that BN overestimated its income and dipped into the GST refunds account, sources told The Malaysian Insight.

The money was not “stolen” or “robbed” as claimed by Finance Minister Lim Guan Eng when he revealed the “missing” funds in the Dewan Rakyat in August last year.

“The Customs Department was expected to contribute a certain amount to the Treasury but when it was insufficient, the previous government used the refunds for its own expenditure,” a parliament source told The Malaysian Insight.

“Taxpayers were literally forced to lend the money to the government.” 

PAC was tasked with looking into the case of the “missing” RM18 billion in GST refunds after Lim revealed that only RM1.486 billion remained in an account dedicated to GST refunds.

The amount was insufficient to cover the RM19.4 billion owed to taxpayers.

Of the amount, RM9.2 billion was for refunds owing for 2018, RM6.8 billion (2017), RM2.8 billion (2016) and RM600 million (2015). GST began on April 1, 2014.

PAC chairman Dr Noraini Ahmad yesterday said the committee’s report on the GST refunds would be tabled in the Dewan Rakyat next Tuesday and made available to the public on the Parliament website.

As a result of the missing GST refunds, the new government included a one-off special dividend of RM30 billion from Petronas to facilitate the tax refunds in Budget 2019.

Lim’s revelations prompted PAC to start a probe into where the money had gone.

PAC originally planned to table its report last November and then again in the last sitting but after a change of chairman from Ronald Kiandee to Noraini, it was announced that the report will be tabled in the current sitting.

“PAC also had to recall some of the people interviewed last year due to the change in members,” another source said.

“Another reason for the delay was due to the recommendations. One or two members could not agree on that and wanted to insert something about how the government handles future shortfalls.

“But that was out of PAC’s term of reference. The report should be finalised tomorrow,” said the source.

In the course of the investigations, PAC interviewed Lim, former auditor-general Madinah Mohamad and director-general of Customs Subromaniam Tholasy. 

Lim’s statement in the Dewan Rakyat last August, where he used the word “merompak” (robbed) to accuse BN of being responsible for the missing funds, led to Rembau MP Khairy Jamaluddin lodging a police report over the finance minister’s claim.

Police also recorded Lim’s statement. – July 11, 2019.

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Comments

  • To use funds that is not yours without asking permission is like taking peoples property without permission. If that is not robbery I dont know what is robbery.
    If I work in a bank and I am short of funds, can I just help myself to some of the money and when caught just say I use it for a while only. Will return when I have the means?

    Posted 4 years ago by Adrian Tan · Reply

    • Agreed. Simple term is "rompak" lor. They are just twisting the term into an essay.

      Posted 4 years ago by Luke Skywalker · Reply

  • One works in a company and has access to the company fund. If he uses the company fund to pay his credit card/loan without company approval, he's committing CBT! Pekan lanun is a habitual liar and a thief.

    Posted 4 years ago by Chee yee ng · Reply

  • The finding by PAC has merely confirmed the claim made by LGE that the money meant for GST refund was missing from the account. BN at first denied the accusation. Now it is proven that the money which was supposed to be utilized for GST refund was in fact used for other purposes.

    Posted 4 years ago by Abdullah Abdul Karim · Reply

  • he finding by PAC confirms the claim made by LGE that the money meant for GST refund was missing from the account. BN at first denied the accusation. Now it is proven that the money which was supposed to be utilized for GST refund was in fact used for other purposes.

    Posted 4 years ago by Abdullah Abdul Karim · Reply

  • It now remains for Parliament and the AG to decide under which Act, the culprits responsible should be charged. To ensure this is not repeated, the guilty should face the most severe sentence allowed for under the law.

    Posted 4 years ago by Panchen Low · Reply

  • the money was GST money meant to be refunded back to companies that overpaid. which means the money doesn't belong to the government in the first place. so if the government took money that didn't belong to them and spent it in government's expenditure without explanation or permission, that's robbery la!!!

    Posted 4 years ago by Billy rave · Reply

    • CBT ??? Confirm irregularities on previous kleptocrat BN

      Posted 4 years ago by Tam Yan Cheng · Reply

  • At the very least, Criminal Breach of Trust?

    Posted 4 years ago by Yoon Kok · Reply

  • LGE is right...it was stolen.

    Posted 4 years ago by Lipdah Lia · Reply