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AG Reports prove that Selangor and Penang has increased yearly govt spending at higher rates than Federal Govt since 2008
General elections are near and Pakatan will soon be coming out with statements claiming that they can reduce “wasteful” yearly government spending by reducing corruption and wastage while cutting the civil servants wage bill.
Unfortunately, their track record shows the complete opposite.
In fact, the Auditor General’s yearly reports shows both the PKR-held Selangor and DAP-held Penang have both increased their yearly Govt spending (Perbelanjaan Mengurus) at a much higher rate than the Federal Govt during the same period.
In 2007, the year before Pakatan took over Selangor, the state operational spending was RM1.15 billion with salaries at RM169 million.
After taking for 3 years, in the year 2011 the state spending for the year has jumped to 1.453 billion with wage bill at RM266 million.
And by 2015, Selangor state spending has doubled to RM2.134 billion while wages more than doubled to RM362 million.
Penang is even worse.
In 2007, the year before DAP took over, the Penang govt operational spending was RM252.25 million while wage cost was RM 78.15 million.
By the third year in power, DAP had doubled the state administration spending in 2011 to RM464.57 billion while wages has increased to RM112.65 million.
And in the year 2015, the AG report shows the state spending has now jumped to RM825.88 million – 350% of what it was in 2007.
Penang State govt wages in 2015 also doubled to RM142.85 million.
Worse is that the Penang budget for 2017 is to spend RM1.5 billion in state administration spending – a staggering 500% more than what it was before DAP took over Penang.
You may ask how then did they still earn a surplus if they keep spending money like water?
The answer is to sell state land and assets. Ask Penang and Selangor to list out the land and assets that they have sold since 2008 and you will be shocked.
So, how to trust Pakatan when they claim they will reduce Federal Govt spending and wages when the AUDITED track record shows they have not been able to do it for the states under their control but in fact increased it faster than Federal Govt?
Source: LSS Report
The Penang Govt has finally confirmed what the NGOs have been alleging regarding the Peel Avenue state land.
It appears that the Penang Govt had already quickly sold off the state land (AKA alienated from the state govt as per press statement- not leased as reported in some media) for RM156 million to a private luxury hospital group which LGE says will boost “medical tourism” for Penang.
The sale of this state land, which some govt-owned colonial bungalows currently sits on, works out to be about RM550 per square feet – as compared to what the NGOs claim to be RM1000 psf for land in that area.
(BTW, RM550psf is way higher than the RM280psf which LGE paid for the land of his luxury Pinhorn Road Banglo)
The reporters were told that this was done without open tender or any tender and that this project was approved without any prior consultation – both of which DAP had promised they will always do for their project.
This will surely anger those Penang NGOs even more.
Obviously, RM156 million will be handy to fund the 5 fold increase of Penang Govt’s annual state spending from RM280m to RM1.5 billion this year.
Already, tens of billions of Penang State land and assets has been sold or traded away since DAP took power in 2008.
I think anyone – including Superman Hew – can increasingly sell off state asset to fund an ever exploding annual state spending and then show a surplus, claiming they have “managed” well.
DAP EXCO Chow Kon Yeow had previously admitted that there is not much more state land left – especially on the Island – so you got to wonder how much will be left when DAP finally leaves?
DAP and Penang CM will now have to answer how much land left, why there was no open tender and no public consultation before this luxury hospital expansion project was approved?
They will also have to answer how is this different from the Taman Manggis state land that was also sold in 2010 at prices deemed also to be below market-price to also build a “medical center which LGE said will boost medical tourism for Penang but still remains a piece of empty land 7 years later.
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