Pahang rep questions RM2.9bil debt

KUANTAN: Pahang’s debt with the Federal Government came under question by a state assemblyman, who wanted to know what the RM2.9bil in loans have been used for.

Chow Yu Hui (DAP-Bilut) asked how the state ended up owing such a large amount of money compared to Johor, which only had RM249mil in debt or Penang with RM69.3mil.

“According to the Finance Ministry, the Federal Government’s loan to state governments is to fund basic infrastructure projects such as water supply and low-cost public housing but even then our large debt still raises a lot of questions.

Mohd Sharkar: ‘The government did not simply spend the money and used it for developing water infrastructure and housing’

“Has the money been used to fund big development projects and what is the government’s plan to repay the debt?” he asked in his debate on the motion of thanks on the royal address during the state assembly sitting on Thursday.

State Tourism and Culture Committee chairman Datuk Seri Mohd Sharkar Shamsudin (pic) interjected, saying that the government did not simply spend the money and used it mainly for developing water infrastructure and housing.

“Furthermore, there is an offset when the Federal Government pays the premium to build schools and higher learning institutions on the state government’s land.

“The debt does not mean that the state is bankrupt.

“It must also be made known that 70% of the peninsular’s water source comes from Pahang.

“We have to protect the water catchment areas by gazetting the forested areas as reserved land.

“That is why the Federal Government does not pressure us,” he said.