Guan Eng questions govt’s decision to cancel RM2b guarantee for Penang, accuses Tengku Zafrul of double standards
DAP secretary general Lim Guan Eng speaks during a press conference in Kuala Lumpur August 28, 2020. — Picture by Firdaus Latif
KUALA LUMPUR, Nov 29 — DAP secretary-general Lim Guan Eng today questioned and demanded answers from Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz as to why a US$500 million (RM2 billion) loan guarantee requested by Penang from the federal government was recently cancelled.
The former finance minister explained how the government guarantee was only requested to act as a guarantor for the Penang state government against a loan obtained from the Asian Development Bank (ADB), a requirement of ADB, for the Penang Light Transit Rail (LRT) project.
Lim then accused the government of practicing vengeful politics by blocking aid to states led by Pakatan Harapan.
“This instance of revenge politics is very obvious because if taken from the financial aspect, there is no reason why the government guarantee to the bank loan cannot be approved.
“Why did Tengku Zafrul, when he was CIMB Bank Berhad’s chief executive officer approve a RM1.5 billion direct loan to the Penang Development Corporation (PDC) in 2018, but as the Finance Minister refuses to approve a RM2 billion guarantee to the Penang state government?” Lim said in a statement.
The former Penang Chief Minister explained how a guarantee from the government for the RM2 billion would not even translate to funds coming out from the national coffers as the Penang state government are able to service its own loans.
Lim added how the LRT project is desperately needed by the state to alleviate traffic congestion and spur further development towards it becoming a modern state.
“Penang recorded exemplary results in its debt management with the lowest loans among all the states in Malaysia, with RM57.83 million in 2018. Assets meanwhile are worth around RM2 billion.
“It was based on these financial performances that the state government’s promise itself was sufficient enough to convince CIMB to approve a bank loan of RM1.5 billion to the PDC, which is wholly owned by the state government,” Lim said.
“We hope Finance Minister Tengku Zafrul can reconsider the decision to cancel the guarantee to ADB, based on the financial performance and the state’s ability to pay for the loan,” he added.
The former finance minister explained how the government guarantee was only requested to act as a guarantor for the Penang state government against a loan obtained from the Asian Development Bank (ADB), a requirement of ADB, for the Penang Light Transit Rail (LRT) project.
Lim then accused the government of practicing vengeful politics by blocking aid to states led by Pakatan Harapan.
“This instance of revenge politics is very obvious because if taken from the financial aspect, there is no reason why the government guarantee to the bank loan cannot be approved.
“Why did Tengku Zafrul, when he was CIMB Bank Berhad’s chief executive officer approve a RM1.5 billion direct loan to the Penang Development Corporation (PDC) in 2018, but as the Finance Minister refuses to approve a RM2 billion guarantee to the Penang state government?” Lim said in a statement.
The former Penang Chief Minister explained how a guarantee from the government for the RM2 billion would not even translate to funds coming out from the national coffers as the Penang state government are able to service its own loans.
Lim added how the LRT project is desperately needed by the state to alleviate traffic congestion and spur further development towards it becoming a modern state.
“Penang recorded exemplary results in its debt management with the lowest loans among all the states in Malaysia, with RM57.83 million in 2018. Assets meanwhile are worth around RM2 billion.
“It was based on these financial performances that the state government’s promise itself was sufficient enough to convince CIMB to approve a bank loan of RM1.5 billion to the PDC, which is wholly owned by the state government,” Lim said.
“We hope Finance Minister Tengku Zafrul can reconsider the decision to cancel the guarantee to ADB, based on the financial performance and the state’s ability to pay for the loan,” he added.
tak malu dap shit that approved the budget now question the frontdoor fm?
ReplyDeletequit la lge, make sure bring yr old man along.
Ungrateful Twit of A Twat. After DAP's 42 MPs allow your backdoor Budget to Pass Phase 1 you stab them in the back.
ReplyDeleteWait lah your cumuppance is coming, up your rectal orifice....ha ha ha...
Jibby reminded DAP about Guanee's revenge politics, like cancel allocation to repair dilapidated schools in Sarawak.....so many court cases this family, my kelapa oso pusing pusing....is this the one Jibby is sore about....?
ReplyDeleteDilapidated school so give them solar power????
QUOTE
Rosmah sought 15% contribution for helping firm to secure project, court told
Emir Zainul
theedgemarkets.com
July 14, 2020
KUALA LUMPUR: Datuk Rizal Mansor, a former aide to Datin Seri Rosmah Mansor, had asked for a 15% “contribution” from Jepak Holdings Sdn Bhd on behalf of the former prime minister’s wife for helping the company to secure a RM1.25 billion solar hybrid project in 2016 from the education ministry, the High Court was told today.
On top of that, Rizal asked for a RM5 million cut for himself every year for a five-year period, which is also the duration of the project, said Rayyan Radzwill Abdullah, a business partner of Jepak.
Testifying in Rosmah’s graft trial, Rayyan said Rizal had advised him and Jepak managing director Saidi Abang Samsudin to offer a contribution of 10% to 15% of the value of the hybrid solar project to her.
However, Rizal told Saidi to offer 10% first so that they can negotiate and stop at the level of 15% of the value of the project.
Rayyan said when the trio met Rosmah at her residence in Langgak Duta in 2016, Saidi offered her a 10% contribution but she replied: “The current political situation requires a lot of money... we will see later.”
Then in the afternoon of the same day, Rayyan said he and Saidin met with Rizal for a follow-up meeting in Sunway Putra Mall. He claimed that during the meeting, Rizal said everything was fine but the percentage of the contribution should be increased to 15% because Rosmah wanted 15% of RM1.25 billion, which is the value of the hybrid solar project.
“So the total contribution of 15% is equivalent to RM187.5 million,” Rayyan told the court.
Rayyan explained that he and his business partner Saidi had decided to meet Rosmah after they were unsuccessful in getting former prime minister Datuk Seri Najib Razak and former education minister Datuk Seri Mahdzir Khalid to help secure the project from the education ministry.
The RM1.25 billion project involved the supply of solar hybrid energy to 369 rural schools in Sarawak.
Rayyan also testified that the kickback is meant to be paid as a “political contribution” to Rosmah through a firm based in Taiwan. This was to be arranged by one Lawrence, who worked for Tan Sri Desmond Lim.
UNQUOTE
Its called Revenge Budgeting.
ReplyDeleteIt's blind leading the blur budgeting.
ReplyDeleteSoon, everyone in this cesspool is doomed!