PUTRAJAYA: Finance Minister Lim Guan Eng told the Kelantan state government to build its state and boost its financial stand.
This, he said, would allow them to be financially independant and rely less for assistance from the federal government.
“Pas leaders have to change their attitude of defaming others and be more proactive to find new resources and investments to develop the state’s economy.
“Facts and figures and professional management instead of evil sentiments and slander will help the state government which failed to pay salaries to their civil servants.
“If the federal government’s financial assistance is paid back with slander, even investors will not go to Kelantan to invest,” he said in a statement today.
He said the Kelantan state government still owed the federal government RM1,460.7 million as of Sept 30, with outstanding debt worth RM478.6 million.
The RM1,460.7 million debt to the federal government was only for development and infrastructure.
“The Kelantan state government has received additional loan from the federal government upfront to pay salaries/emolument and operational cost.
“These have been acknowledged by the Kelantan state government in several official letters to the Finance Ministry,” he said.
Lim said it was known that Kelantan was the biggest recipient and borrower from the Advance Fund.
“Only few state governments have applied for allocation from the Advance Fund to pay salary and emolumentas well as operational cost.
“States like Selangor, Sabah, Sarawak and Penang did not apply for funding from the fund because they do not face financial constraints to pay their staff salaries,” he added.
As of Sept 30 from the Advance Fund, Kelantan still owed RM404.4 million, he said.
“In other words, the overall debt incurred by the Kelantan state government comprises development debt and management debt worth RM1,865.2 million.
“One must keep in mind that the RM1,865.2 million is additional aid on top of the allocation per capita and for road which have been given to the Kelantan state government as what has been stipulated under the Federal Constitution.
“I am shocked there are Pas leaders who cannot differentiate between debt for development and for management.
“Also, there are those who refuse to admit the financial state of Kelantan state government which is critical, until it cannot afford to pay salaries of its staff,” he said.
Lim said the ministry also would like to correct Pas president Datuk Seri Abdul Hadi Awang’s statement that it never ‘begged’ for financial assistance.
“The federal government never assumed it as ‘begging’.
“However, the ministry gives serious focus on the request for financial aid for Kelantan state government for the payment of salaries of their civil servants. That’s why funding was approved for Kelantan,” he said.
He said Hadi shouldn’t have such bad assumptions of the federal government, even more when financial aid of RM22.5 million was given by the Pakatan Harapan government in August, to pay salaries and emoluments of the civil servants in the Kelantan state government.
“I have to repeat that the federal government still approves financial aid for the state government to pay the salaries or emoluments for their civil servants despite being scorned by Pas leadership and during times where the government is faced with financial difficulties,” he added.