![](https://i.malaysiakini.com/1132/cec06337af58f069dd953e5234e20f86.jpeg)
PARLIAMENT | When the Pakatan Harapan-administration included contingent liabilities as part of its debt calculations totalling RM1 trillion, critics were sceptical as to whether it was the right approach.
Now, the Parliamentary Select Committee (PSC) on the Budget has scrutinised the list of contingent liabilities and affirmed that this is the accurate way to portray the nation's finances and prepare for debt service charges.
Topping the list for committed contingent liabilities was DanaInfra Nasional Berhad (DanaInfra), which still has a debt of RM52.74 billion.
The loan tenure for DanaInfra, a company wholly owned by the Finance Ministry, expires in 2049. The money was used to finance the Mass Railway Transit (MRT) project and the Sarawak leg of the Pan Borneo Highway.
"DanaInfra finances the MRT project but it does not have enough revenue to repay its sukuk bonds.
"Thus why the federal government needs to pay the principal and interest amounts," explained the PSC in its report on government debt and liabilities which was published yesterday.
Notably, the government is also guaranteeing RM31.41 billion in debt until 2037 for Prasarana Malaysia Berhad, a firm owned by the Finance Ministry. This is to finance the operational and infrastructure needs for the Light Rail Transit (LRT) and Rapid KL services.
From loans to debts
The National Higher Education Fund Corporation (PTPTN) had the highest amount of normal contingent liabilities at RM37.7 billion.
Set up in 1997 to provide tertiary study loans, it has in recent years struggled to recoup repayments. Last month, PTPTN concluded its public consultancy programme, which was aimed at assisting the company in coming up with a new repayment mechanism.
Normal contingent liabilities are loans held by firms which possess a stable revenue stream and are capable of serving them. Putrajaya is not expected to repay them unless the firms somehow fail to settle their debts.
In second place for the category was the Public Sector Housing Financing Board (LPPSA) with RM17.75 billion in debt, while state investment firm Khazanah Nasional Berhad was third with RM15 billion in such liabilities.
In total, Putrajaya was guaranteeing RM137.9 billion in committed contingent liabilities and RM128.5 billion in normal contingent liabilities.
Set guarantee limits
In light of these numbers, the PSC recommended that Putrajaya set "statutory or administrative limits" on guaranteed amounts.
It also urged ongoing reviews for both committed and normal contingent liabilities.
Furthermore, it advised that the government should paint a more accurate picture of its finances by presenting detailed reports of all debts and liabilities, including government guarantees as well as off-budget obligations.
The committee explained that it had compiled the report to ascertain the country's true financial position.
The bipartisan PSC is led by Mustapa Mohamed (Harapan-Jeli) and comprises government lawmakers Tan Yee Kew (Wangsa Maju), Nik Nazmi Nik Ahmad (Setiawangsa), Dr Kelvin Yii (Bandar Kuching) and Khoo Poay Tiong (Kota Melaka).
The two opposition MPs on the committee are Khairy Jamaluddin (BN-Rembau) and Alexander Nanta Linggi (GPS-Kapit). - Mkini
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.