24 October 2018
KUALA LUMPUR: Finance Minister Lim Guan Eng has come forward to show “evidence” that the Kelantan state government had requested for an advanced grant loan to pay the salary of its civil servants.
He distributed a letter, dated June 18, from the Kelantan state government requesting the advanced loan from the federal government.
Lim said the Kelantan state government requested a total of RM24.5mil to pay the salary and emolument for its civil servant and temporary staff this year.
“However, the Finance Ministry only approved a total RM22.5mil, so the civil servants in Kelantan will be paid their salary,” he told reporters at the Parliament lobby on Wednesday (Oct 24).
Lim said financial and economic management must be done based on facts, and not sentiments or ill intention.
“It is hard to restore the confidence of the public and investors or to rebuild a failed state if they do not do things based on facts,” he said.
Lim also hit out at the PAS’ top leadership for playing up racial and religious issues and linking it to this matter.
“How could some of them accuse me of (being) anti-Malay or Islam.
“I don’t understand where the issue stems from. When I talk about facts and figures, and mention that the federal government provides assistance, how can they stir up racial and religious issues?
“Usually such replies come from those who do not know how to manage the economy and will reply using such sentiments to cover up their failures,” added Lim.
“I hope the PAS leadership can get back on the right track and give full focus to facts and figures,” he said.
He said as of Dec 31, 2017, the state government had not yet paid back the total outstanding loan on their grant advancement of RM388mil from the federal government, making Kelantan the highest debtor.
Read more at https://www.thestar.com.my/news/nation/2018/10/24/lge-shows-proof-kelantan-asked-for-advanced-federal-loan-to-pay-its-civil-servants/#KHBploRmSA5BKyLQ.99
23 October 2018
KUALA LUMPUR, Oct 23 — Finance Minister Lim Guan Eng has revealed that the Kelantan PAS government owes the Federal government a whopping RM388 million up till the end of last year, making it the biggest debtor among all states.
Lim said in a press release today that in 2016, the state had received a grant of RM398 million out of which RM59.9 million was a deficit grant, and Putrajaya had also given Kelantan an advance loan of RM100 million as additional funds to support state expenses.
“Up till December 31, 2017, the Kelantan state government has not paid the advance loan amounting to RM388 million, making the Kelantan state government the biggest debtor on advance loans.
“It must be stressed that only states that have financial management problems would request deficit grants and advance loans.
“This is why former finance minister Datuk Seri Najib Razak made an open statement on January (28) this year that the Kelantan state government could not afford to pay the salary/emolument of its own civil servants and depend on federal government assistance. These are facts based on truthful figures,” said Lim.
He added that in June this year, the state government had again requested for an advance loan from Putrajaya to pay the salaries and emoluments of its civil service staff and the request had also been approved.
In Parliament yesterday, the Bagan MP had mockingly asked PAS lawmakers why they wanted the suspended East Coast Rail Line (ECRL) project to resume without the federal government’s backing when the state could not even afford to pay the salary of its civil servants.
This triggered a heated shouting match.
During the debate session in Parliament today, PAS’ Pendang MP Awang Solahudin Hashim asked Najib whether or not Lim’s statements were true and demanded the former finance minister furnish the numbers.
“Kelantan has always been able to pay its (civil servants’) salary. I didn’t expect this question and I do not have the data at hand, but the finance minister should have all the details and he must answer this question factually,” Najib replied, backtracking on his earlier statement made in January.
In the press release, Lim also voiced his disappointment with the reaction that PAS leaders had for his statement.
“I find it interesting that PAS’ leadership had such a harsh reaction towards my statement when compared to a similar statement made by Datuk Seri Najib before this.
“Is it because I am a ‘soft’ target allowing PAS leaders to play up dangerous sentiments utilising slander without shame?” he asked.