'PAWNSHOP' GOVT! Rafizi exposes Najib's HUSH-HUSH sale of national assets to cover DEFICIT

KUALA LUMPUR - MP for Pandan Rafizi Ramli has exposed how Prime Minister Najib Razak was able to fund a slew of populist measures ahead of the recent May general election by selling national assets.

However, it looks like Najib's hush-hush trips to the 'pawnshops' may have hit a roadblock - either because there's nothing left to sell or there are simply no buyers left as the global economy turns cautious.

Hence, the recent push to raise prices on a slew of goods and services including electricity, tolls and assessment rates.

“I suspect the plan to sell national assets have already occurred because it is intended to achieve the 4 per cent target deficit for 2013 which actually had failed. This means national assets have already been sold and mortgaged so that it would gain returns in 2013 to close the national income and spending gap." Rafizi, who is also the strategic director of PKR, told a press conference on Friday.

Rafizi, a UK-trained auditor, cited the latest World Bank report on Malaysia to back his claim. He termed as “shocking” the move to sell and mortgage off the nation's assets so that Najib & Co could continue with their "excessive spending and wastages”.

The rWorld Bank report had said the Najib administration would be able to achieve its target to reduce the fiscal deficit to 4 per cent through non-tax resources that included RM1.4 billion gained from “asset sales” and RM4.2 billion from “securitization of government mortgages”.

From the horse's mouth

The World Bank report, entitled Malaysia Economic Monitor: December 2013, read:

“The government is expected to meet is headline deficit target for 2013 as additional non-tax collections offset higher expenditures on subsidies.

“Despite estimated operating (current) expenditures exceeding their budgeted 2013 allocations by RM14.3 billion (7.1 per cent) and slightly worse GDP growth compared to the previous year’s forecast, the government reaffirmed its headline deficit target for 2013 (4.0 per cent vs 4.5 per cent in 2012).

“This target will be achieved through additional tax revenues. Of the additional RM11.8 billion in revenues expected to be raised...RM7.4 billion originated from non-tax sources, including RM1.4 billion of proceeds from asset sale and RM4.2 billion from the securitization of government mortgages." - Malaysia Chronicle