Johari: Not fair to ask gov't to use taxpayers' money for bailouts

It is not fair to ask the government to come up with money when it mediates between two parties, one that is not getting paid, Second Finance Minister Johari Abdul Ghani said today.

"Is it fair that everytime the government tries to mediate, it means the government guarantees (payment)?

"This is public money, this is your money, my money. We are taxpayers, we have to protect this country," Johari told Malaysiakini.

He said this in response to 16 contractors who claimed that the government had shirked its promise to ensure they get paid RM26 million for work they did on a government-linked project.

This is in regard to a steam boiler plant built in Kerteh, Terengganu, in 2014.

The plant was developed by a private entity, in which Johari said the government, through Malaysian Venture Capital Management Bhd (Mavcap), owns a minority 25.8 percent stake.

Johari said BiotechCorp had also loaned the private company RM63 million for its business.

"That is the only relationship. This whole thing is being managed by (the company's majority owner)."

Finance Ministry promised, contractors say

The contractors claimed that after the company failed to pay them the RM26 million, they sought government intervention, and claimed that the Finance Ministry had promised to get them paid.

However, Johari informed the contractors that the ministry would not be paying them.

"If the (company) screwed up the investment, then the contractors should go after them, not after the government."

He said things would be different if the contractors had documentation to prove that the government guaranteed them payment.

"Show me the documents and I will help whoever is a victim in all this," he said.

Johari then lamented the failures of the company behind the project, which was meant to supply steam energy to a French and a South Korean company.

"The government has helped you to kick-start the project but you don't know how to manage it and now the investors have lost confidence."

The investors, Johari added, were now building their own steam plant, a move that would make the existing Kerteh facility redundant. - Mkini