BN shoring up its coffers

Subsidy cuts on essential goods is a BN strategy to finance the impending general election, says a former PKR man.

PETALING JAYA: The subsidy cuts on essential goods by the government is a strategy to shore up Barisan Nasional-Umno’s coffers to finance the impending 13th general election, said a PKR leader.

R Suresh Kumar, the former Federal Territory PKR deputy chairman, said this was the real reason behind the recent hikes in petrol and sugar prices.

He anticipated that Prime Minister Najib Tun Razak would call for the general election in the middle of next year as the BN is aware that the people would have got used to the hikes.

“It simply shows that BN is gearing up for the general election as the BN is aware that Malaysians are ‘orang cepat lupa’ (forget easily) and would have got used to price hikes,” he said.

Suresh Kumar said that since the political tsunami of 2008, BN had to spend billions of ringgit to woo voters back until the treasury is now almost depleted.

“In the last three years, BN faced 15 by-elections and wasted billions of ringgit and yet failed to win the hearts and minds of the people.

“For example, BN spent almost RM 1.1 billion in the Kuala Terengganu by-election and still lost,” said Suresh.

“So, the BN is now playing dirty and burdening the people by cutting the sugar and petrol subsidies so that it can raise funds for the general election.”

He said that with the increase in sugar price from RM2.10 to RM 2.30, the government stood to make RM116 million while it would earn nearly RM20 billion from the cut in petrol subsidy.

‘Justify subsidy cuts’

Suresh Kumar said that the BN would also milk billions from the new 6% service tax.

Indian Justice Party pro-term president PS Jenabala asked Najib to justify the subsidy cuts.

“BN says the nation’s economy is stable and that the people won’t be burdened, but at the same time it increases the prices of goods, especially petrol, cooking oil and sugar,” he said.

“If the economy is stable, why the cut in subsidies?” he asked, adding that the government should scrap the RM18 billion in subsidies to independent power producers (IPP)s, most of whom are BN cronies.

Meanwhile, DAP leader, senator S Ramakrishnan, said that the subsidy cuts was just to fill the government treasury which has been severely depleted.

“I do not think that the BN is raising funds for the general election. The results of the Sarawak state election must have influenced Najib to postpone the general election,” said Ramakrishnan.

In March 2008, the BN coalition failed to secure a two-thirds majority in Parliament. It was largely attributed to the shortfall in Indian votes.