KUALA LUMPUR: The gauntlet thrown by former prime minister Najib Razak to Finance Minister Tengku Zafrul Abdul Aziz with his spurious claims on government loans and debts was answered like a true fighter for the truth by the latter.
In his Facebook post on May 22, Najib claimed the government has incurred loans amounting to RM115.53b as of May 22 and gave a list of the monthly breakdown of the loans from January to May 22, and was ready to be investigated under the fake news Emergency Ordinance if the list is proven false.
He went on to say it is the right of the government to borrow RM115.53b since the beginning of this year and spend it according to its whims and fancies after the Finance Act that controls and monitors government expenditures has been suspended through an Emergency Ordinance.
Najib seems to have an axe to grind against Prime Minister Muhyiddin Yassin when he even takes a dig at Muhyiddin when he continued his rambling by suggesting that most of the loans could have been spent on beneficial projects such as the construction of three halls in Pagoh worth RM35m.
On May 26, Zafrul responded that as of April 2021 government loans amounted to RM81.8 billion, and about RM99.3 billion as of this month, not RM115.53b as Najib claimed.
Apparently, Najib has fudged the number by including loans raised by Petronas and Khazanah Nasional Berhad, as well as proceeds from the sale of stakes in Telekom and Silterra for their respective capital and cash flow requirements, and the government’s use of the National Trust Fund (KWAN).
All the above, strictly speaking, are not government loans.
“I find the inclusion of such loans and sale of assets extremely puzzling. How can such loans made by Petronas and Khazanah count towards government debt? These loans were made for their capital and cashflow requirements.
“These are debts that Petronas and Khazanah are fully responsible for. How can you consider borrowings by such entities as Federal Government’s debt?” Zafrul said in his Facebook post.
According to Zafrul, since January 1, all government loans have been made based on the expenditure approved via Budget 2021 in Parliament. There have been no additional funds as alleged by Najib, except for the usual government revenue which has since decreased significantly due to the pandemic.
“Additionally, the government has never used the Emergency Ordinance as a way to increase government expenditure or increase the statutory debt limit set by Parliament in August 2020,’’ Zafrul added, thus demolishing Najib’s argument that the government might have spent recklessly with the Finance Act being suspended.
As for the RM5b drawn from the KWAN fund which will be used mainly for purchasing vaccines, it is not a loan but conveniently inserted by Najib in his list to artificially increase the amount of government loan.
It’s actually government reserves built over the years since the 1960s for use by future government. And the Muhyiddin administration is not the first to use the KWAN reserves.
It seems his hatred for Muhyiddin – whom he has mercilessly sacked from Umno for opposing his scheming in 1MDB – is so strong that he was among the first to say the Muhyiddin administration is raiding the KWAN funds when the government announced its use for the purchase of vaccines. Unless he can prove the KWAN monies are being used for hanky-panky, how can the use of taxpayers’ monies to benefit taxpayers be described as a money raid.
On the RM81.8b loans that have accumulated as of April, Zafrul explained it comprises RM36.1b to refinance debts that have reached maturity, while RM50.2b is used as development expenditure which includes expenditure from the Kumpulan Wang COVID-19, of which RM17b is for 2021.
This encompasses initiatives such as Bantuan Prihatin Rakyat, Wage Subsidy Programme, Jaringan Prihatin and Program Belia either completed (monies used already), or about to be launched throughout MCO 2.0 and MCO 3.0 this year (monies still available).
Kumpulan Wang Covid-19 was established from the proceeds of the government’s RM666m Sukuk Prihatin launched on Aug 18 which surpassed the original target of RM500m, and issued in Sept.
Zafrul also clarified on some issues Najib has been misrepresenting the public. One of these is the fact the government has never made any borrowings outside its annual Budget or off-balance sheet borrowings, unlike the Najib administration which racked up an off-balance sheet financing amounting to RM50b.
What’s more, between 2008 and 2017 under Najib, the federal debt level rose over 120%, but most significantly government guarantees rose by over 240%. And yet there was no unprecedented pandemic like Covid-19 that he had to face, with the concomitant confluence of three major issues occurring at the same time – public health, economic downturn and political instability.
The contingent liabilities of a high government guarantees and off-balance sheet borrowings of the Najib administration burst asunder with the infamous 1MDB fiasco whose ramifications are still being felt today when the present government has to shoulder a lot of legacy debts by 1MDB, SRC, SSER, etc.
“The unfortunate truth is that a lot of the Government funds go towards servicing these debt liabilities – approximately 15% of all Government’s debt is in the form of 1MDB’s guarantee and debt commitments … in short, this government (PN) has inherited a large amount of debt but currently faced with a lower capacity to meet these financial commitments,” said Zafrul.
Contrary to what Najib claimed over and over again, that the government since the time of Pakatan Harapan (PH) has not paid a single cent of 1MDB debt when according to him, 1MDB left behind assets plus the funds garnered from its asset recovery efforts that can be used to pay off its debt, Zafrul said the government has repaid RM12.4b of 1MDB debt and RM3.1b of SRC debt, “and yet we still have to settle the principal as well as coupon, profit or interest payment for the bonds, sukuk and term loans amounting to RM39.8b for 1MDB and RM2.7b for SRC”.
Thus, besides the federal debt, the government also has to honour guarantee commitments for 1MDB, SRC and SSER. Again, contrary to what Najib said, these projects do not generate income to settle their loan principal and interest. “What is even more saddening is that in most cases, we don’t even know what benefits these debts have given to the country,” added Zafrul.
If there is no 1MDB fiasco, these billions of debts could have been used to benefit the rakyat during the pandemic as pointed by Zafrul and many other opposition figures, and in this it shows how unremorseful Najib is in bringing down the country into the abyss.
“All our calculations and loan obligations are recorded based on practices established by past administrations in Malaysia,” assured Zafrul.
One devious tactic used by Najib to confuse the rakyat is his insistence that government debt has breached the 60% threshold agreed to by Parliament when what the government and Parliament have in mind is statutory debt, not just any debt, which remains near 60% but still below 60%.
Finally, the rakyat must know loans used to support government initiatives and programmes are recorded in the government’s financial statements and subjected to annual audit.
Jamari Mohtar is Director of Media & Communications at EMIR Research, an independent think-tank focused on strategic policy recommendations based upon rigorous research.
** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.
Jamari Mohtar
Fri May 28 2021
![Unremorseful Najib at it again throwing confusions on government loans and debts Unremorseful Najib at it again throwing confusions on government loans and debts](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-04/41618291699_NajibRazak.jpg)
Between 2008 and 2017 under Najib, the federal debt level rose over 120 pct, but most significantly government guarantees rose by over 240 pct. Filepic/AWANI
Mpox atau cacar monyet: WHO isytihar mpox kecemasan kesihatan awam global
Pertubuhan Kesihatan Sedunia (WHO) mengisytiharkan Monkeypox atau Mpox sebagai kecemasan kesihatan awam global, pada Rabu.
Parlimen Thailand pilih perdana menteri baharu Jumaat ini
Parlimen Thailand akan bersidang pada Jumaat ini bagi mengadakan mesyuarat khas memilih perdana menteri baharu susulan keputusan mahkamah yang menyingkirkan Srettha Thavisin pada Rabu/
![Parlimen Thailand pilih Perdana Menteri baharu esok Parlimen Thailand pilih Perdana Menteri baharu esok](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/71723695263_TBSretthaThavisin.jpg)
Parlimen Thailand pilih Perdana Menteri baharu esok
Parlimen Thailand akan bersidang pada Jumaat ini bagi mengadakan mesyuarat khas memilih perdana menteri baharu susulan keputusan mahkamah yang menyingkirkan Srettha Thavisin pada Rabu.
5 kematian akibat komplikasi denggi pada ME ke 31 dilaporkan
Jumlah kes demam denggi Pada Minggu Epidemiologi ke-31 tahun 2024 dilaporkan sebanyak 2,515 kes berbanding 2,609 kes pada minggu sebelumnya.
[TERKINI] Fahmi nafi arah Google nyahaktif ciri graf penukar ringgit
Menjawab tuduhan seorang pengguna X, Ahli Parlimen Lembah Pantai itu menerusi platform sama menegaskan beliau tidak pernah mengarahkan penyedia perkhidmatan itu berbuat demikian.
![Wanita dan kanak-kanak maut dalam nahas kereta, MPV di Kuala Kangsar Wanita dan kanak-kanak maut dalam nahas kereta, MPV di Kuala Kangsar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/51723694795_KemalanganMaut.jpg)
Wanita dan kanak-kanak maut dalam nahas kereta, MPV di Kuala Kangsar
Dua maut selepas kereta dinaiki terlibat dalam kemalangan dengan sebuah MPV jenis Toyota Velfire di Jalan Kuala Kangsar-Manong.
[TERKINI] Bapa terima baik kehilangan Nidza Afham
Mokhtar Mahmud, bapa kepada penyanyi Muhammad Nidza Afham redha dengan pemergian Allahyarham yang disahkan meninggal dunia selepas jasadnya ditemui terapung di jambatan Sungai Klang pada petang Rabu.
Pantau Belanjawan: Kelestarian: Memperkukuh ekosistem ekonomi hijau
Pengarah Urusan Gading Kencana, Datuk Ir Guntor Tobeng mengulas berkenaan usaha Malaysia memperkukuh ekosistem ekonomi hijau, di sebalik cabaran global serta peluang masa hadapan.
[TERKINI] Belasungkawa: Nidza Afham dikebumikan di Puncak Alam
Jenazah penyanyi Nidza Afham Mokhtar, 23, yang ditemukan meninggal dunia di Sungai Klang, akan dikebumikan di Tanah Perkuburan Islam, Puncak Alam, Selangor, pada Khamis.
![EON Berhad mahu dikenali sebagai penyedia perkhidmatan automotif menyeluruh EON Berhad mahu dikenali sebagai penyedia perkhidmatan automotif menyeluruh](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/81723694796_EON.jpg)
EON Berhad mahu dikenali sebagai penyedia perkhidmatan automotif menyeluruh
EON Berhad sedang memposisikan diri sebagai lebih daripada sekadar penyedia kereta, dengan berkembang menjadi penyedia perkhidmatan kereta secara menyeluruh.
![Najib bantah permohonan Majlis Peguam cabar keputusan Lembaga Pengampunan Najib bantah permohonan Majlis Peguam cabar keputusan Lembaga Pengampunan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/61718808324_TBNajib.jpg)
Najib bantah permohonan Majlis Peguam cabar keputusan Lembaga Pengampunan
Najib Razak memfailkan bantahan awal terhadap tindakan Majlis Peguam mencabar keputusan Lembaga Pengampunan mengurangkan hukuman penjara dan denda.
![Belum ada keputusan mengenai representasi Najib untuk gugurkan pertuduhan Belum ada keputusan mengenai representasi Najib untuk gugurkan pertuduhan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81722410912_TBNajib.jpg)
Belum ada keputusan mengenai representasi Najib untuk gugurkan pertuduhan
Pejabat Peguam Negara belum memutuskan mengenai representasi Najib bagi menggugurkan tiga pertuduhan tambahan pengubahan wang haram membabitkan RM27 juta dana SRC International.
![Mahkamah tolak permohonan Najib, anak lelaki tangguh prosiding bankrap Mahkamah tolak permohonan Najib, anak lelaki tangguh prosiding bankrap](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-08/61692790501_NajibNazifuddin.jpg)
Mahkamah tolak permohonan Najib, anak lelaki tangguh prosiding bankrap
Mahkamah Tinggi menolak permohonan Datuk Seri Najib Tun Razak dan anaknya Datuk Mohd Nazifuddin untuk menangguhkan prosiding kebankrapan terhadap mereka.
![Rayuan Najib tangguh prosiding kebankrapan ditolak Rayuan Najib tangguh prosiding kebankrapan ditolak](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/81716969412_Najib.jpg)
Rayuan Najib tangguh prosiding kebankrapan ditolak
Mahkamah Tinggi KL menolak permohonan Datuk Seri Najib Razak dan anaknya, Datuk Mohd Nazifuddin untuk menangguh prosiding kebankrapan tunggakan cukai lebih RM1.7 bilion dan RM37.6 juta kepada LHDN.
![Mahkamah tolak permohonan DNAA Najib, Mohd Irwan Mahkamah tolak permohonan DNAA Najib, Mohd Irwan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-04/81680501625_NajibIrwan.jpg)
Mahkamah tolak permohonan DNAA Najib, Mohd Irwan
Mahkamah Tinggi menolak permohonan Najib dan Mohd Irwan Serigar supaya dilepas tanpa dibebaskan (DNAA) dari tuduhan pecah amanah RM6.6 bilion.
![Rosmah nafi barang kemas, beg tangan, aksesori mewah dibeli hasil aktiviti haram Rosmah nafi barang kemas, beg tangan, aksesori mewah dibeli hasil aktiviti haram](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/41716888562_RosmahMansor.jpg)
Rosmah nafi barang kemas, beg tangan, aksesori mewah dibeli hasil aktiviti haram
Datin Seri Rosmah Mansor menegaskan bahawa barang kemas, beg tangan dan barangan mewah lain yang berada dalam milikannya bukan dibeli dengan wang hasil aktiviti haram.
![Noh Omar sah sertai Bersatu berkuat kuasa serta-merta Noh Omar sah sertai Bersatu berkuat kuasa serta-merta](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-06/51687059960_TanSriNohOmar.jpg)
Noh Omar sah sertai Bersatu berkuat kuasa serta-merta
Bekas Pengerusi UMNO Selangor, Tan Sri Noh Omar sah menyertai Parti Pribumi Bersatu Malaysia (Bersatu) berkuat kuasa serta-merta.
![Najib gagal dalam permohonan cabar kewujudan titah adendum jalani tahanan di rumah Najib gagal dalam permohonan cabar kewujudan titah adendum jalani tahanan di rumah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/61718808324_TBNajib.jpg)
Najib gagal dalam permohonan cabar kewujudan titah adendum jalani tahanan di rumah
Mahkamah Tinggi KL tolak permohonan Najib untuk dapatkan kebenaran mulakan semakan kehakiman bagi mencabar kewujudan Titah Adendum.
![Pembelaan Najib dibenar sertai semakan kebenaran keputusan Lembaga Pengampunan Pembelaan Najib dibenar sertai semakan kebenaran keputusan Lembaga Pengampunan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51719902869_TBNajibjpg.jpg)
Pembelaan Najib dibenar sertai semakan kebenaran keputusan Lembaga Pengampunan
Najib dibenarkan untuk menyertai prosiding permohonan Badan Peguam Malaysia, bagi mendapatkan kebenaran memulakan semakan kehakiman, di Mahkamah Tinggi di sini, pada Selasa.
![Saman sivil SRC: Ismee sambung beri keterangan 29 Julai Saman sivil SRC: Ismee sambung beri keterangan 29 Julai](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-12/41639648016_IsmeeIsmail.jpg)
Saman sivil SRC: Ismee sambung beri keterangan 29 Julai
Perbicaraan kes saman sivil dikemuka SRC International terhadap Datuk Seri Najib Razak di Mahkamah Tinggi akan bersambung pada 29 Julai.