Lim Guan Eng has consistently claimed that under his administration, he has reduced the state debt by 95 per cent from BN’s RM 630million when he took over in 2008.
He likes to paint himself as a competent CM who knows how to manage the state’s money by reducing it to RM 30million as at the end of 2011.
That means a debt reduction of 95 per cent or RM 600million – which in his own words, the highest debt reduction of any state in Malaysia’s history.
Wah so clever. If that was accurate and true, this portal would be the first to thank him. How can a rationale person dismiss someone’s good work.
But unfortunately we have found out Guan Eng’s misrepresentation of figures and facts - if he runs a public listed company and he puts these false figures in his company’s annual report, he would be charged by the Securities Commission and jailed.
What LGE has done is to transfer the debts to the Federal government! In simple layman’s language, pass the debt to your father or grandfather to pay off!
He has deviously omitted as on June 2, 2011, the state-owned Perbadanan Bekalan Air Pulau Pinang entered into a water restructuring agreement with the federal government. This was done via the Pengurusan Asset Air Bhd, a company under the MOF.
Under the agreement, this company takes over existing water assets in the state and transforms water operators into asset light entities.
In return, PAAB will assume the state’s outstanding federal water supply loans of an equivalent sum. With a single stroke, the state’s RM 655million owing to the federal govt is rationalised by alienating state loan related water assets to PAAB.
For a lease of 45 years, the state will pay a rental of RM 14.6mil annually for the same period. With this transfer, the state government is relieved of the debt. In simple English, the state’s loan has simply being re-classified as a result of the federal government’s move – and not the result of LGE’S super intelligence.
In fact, other states also benefitted from such a move before 2008. It has nothing to do with Penang’s excellent fiscal management or the state’s prudent management skills. But LGE and his spin doctors have cleverly made LGE made him a hero with such manipulation of facts and figures.
There are plenty of Pakatan supporters who believe anything and everything spewed by their leaders.
A doctored Utusan Malaysia page 1 interview of Rosmah Mansur claiming she saved millions of ringgit has even become a fact with Pakatan leaders and supporters using it as part of their propaganda, believing it as a real page1!
We believe this economic explanation regarding the transfer of the debt is too complicated for the incredible simpletons of DAP to understand. So continue believing what LGE has to tell you and continue to believe he still travels business class – yes, of course, between Penang and KL or via Firefly which has no class anyway!