LGE shows proof Kelantan asked for advanced federal loan to pay its civil servants

KUALA LUMPUR: Finance Minister Lim Guan Eng has come forward to show "evidence" that the Kelantan state government had requested for an advanced grant loan to pay the salary of its civil servants.

He distributed a letter, dated June 18, from the Kelantan state government requesting the advanced loan from the federal government.

Lim said the Kelantan state government requested a total of RM24.5mil to pay the salary and emolument for its civil servant and temporary staff this year.

"However, the Finance Ministry only approved a total RM22.5mil, so the civil servants in Kelantan will be paid their salary," he told reporters at the Parliament lobby on Wednesday (Oct 24).

Lim said financial and economic management must be done based on facts, and not sentiments or ill intention.

"It is hard to restore the confidence of the public and investors or to rebuild a failed state if they do not do things based on facts," he said.

Lim also hit out at the PAS' top leadership for playing up racial and religious issues and linking it to this matter.

"How could some of them accuse me of (being) anti-Malay or Islam.

"I don't understand where the issue stems from. When I talk about facts and figures, and mention that the federal government provides assistance, how can they stir up racial and religious issues?

"Usually such replies come from those who do not know how to manage the economy and will reply using such sentiments to cover up their failures," added Lim.

"I hope the PAS leadership can get back on the right track and give full focus to facts and figures," he said.

He said as of Dec 31, 2017, the state government had not yet paid back the total outstanding loan on their grant advancement of RM388mil from the federal government, making Kelantan the highest debtor.

The issue of the grant loan was sparked in the Dewan Rakyat on Monday (Oct 22) during the supplementary question by Datuk Takiyuddin Hassan (PAS-Kota Baru), who asked Lim if the state governments of Kelantan and Terengganu could continue with the East Coast Rail Link (ECRL) project on its own initiative.

In his response, Lim said the Kelantan state government had to rely on loans from the federal government and had failed to pay its civil servants.