BN thanks Guan Eng for recognising Putrajaya's help in Penang debt reduction

Abdul Rahman (left) with Lim.

KUALA LUMPUR: Chief Minister Lim Guan Eng has at least acknowledged that Putrajaya helped in reducing the Penang government’s debts via a water restructuring and debt-rationalisation exercise in 2011, said Datuk Seri Abdul Rahman Dahlan.

“I thank Lim for finally acknowledging this in his statement two days ago and setting the record straight.

“Penangites have been given the impression that the debt reduction was due to his ‘impressive’ leadership as chief minister," the Barisan Nasional Strategic Communications director said in a statement Saturday.

Abdul Rahman said the state government’s debts would have tripled if the Federal Government had not intervened.

Lim had said Penang managed to reduce its state debts by 90 percent to RM65mil by the end of 2016.

He said the debts which were taken over by the Federal government were in exchange for water assets surrendered by Perbadanan Bekalan Air Pulau Penang (PBAPP), which are now owned by the Federal government.

He also pointed out that the water debts were incurred by the previous Barisan state government and "it is only fair to return those water debts to the Federal government."

Abdul Rahman said if it was not for the Federal Government's assistance, "Penang's state debt would not have been reduced 95% but would have tripled instead."

He said Lim should also admit that his CAT policy had been unsuccessful in reducing the yearly operating expenses of the state government.

"Instead of efficiency, Penangites saw the yearly state government's operating expenses increased by a whopping 500% since DAP took over Penang in 2008.

"DAP should also admit that to pay for the uncontrollable increase in spending, the Penang Govt had to sell or trade away tens of billions of ringgit worth of state lands and assets.

"I am very sure Penangites agree with me that selling or trading away state assets to pay for government expenses is not sustainable and is a sign of bad governance," he said.