Selangor Cash Reserves RM1.28 bill… Hooray?

by Dr R@28

• In Sept 2011, Selangor MB announced that the state cash reserved rose to RM1.1 bill. In his recent prerecorded speech, if my memory serves me right, I believe he said it is RM1.28 bill. It is the highest in 28 years and 3X more than what it was when they took over Selangor. I wrote before and question the need to keep so much money in the state coffers. They are not a business entity. They just need to maintain certain level of ratio against the state obligations. BNM uses the retained imports and short-term debts as a barometer to determine how much reserves they require. As SSG finances are not publicly available we wouldn’t know their basis of keeping so much reserves.

• All I know is that prior to 2008, SSG maintains a reserve of about RM400-RM500 mill. They don’t keep so much money. I guess the people can speculate where the money went. The current SSG is touted to be responsible, prudent and less corrupt. That’s why they manage to keep so much money. If that is the case why not spend it for the people. Some of the local authorities are rich. Others are running a tight budget. In Ampang AA told me that they maintain 700 KM of roads and in 2011 they have spend RM7 mill. When I checked, it turns out RM2 mill is from MPAJ own funds, RM5mill from Federal Grant and RM0 from Selangor Government. The RM7 million spend has not been productively used as they can only do patching up job all over Ampang.

• I questioned AA on why can’t the SSG give RM5 mill to MPAJ to do up the roads in BA properly? He evaded my question. What is RM5 mill? That’s equivalent to 0.00391%. Even MPAJ top brass question it. Should SSG show off that it has RM1.28 bill or they should show off that they have a decent infrastructure maintenance program? The people cannot see the money but they could appreciate a beautiful road and well maintained infra. I disagree with SSG financial strategy. Politically, it is suicidal. If BN win next round because the people are fed with issues including infra, they will spend the money in their own ways. Is that what PR in Selangor wants? I think the MB is penny wise but pound foolish. He is keeping money for the next government to spend. The question is why PR is encouraging the people NOT to vote them again?