KUALA LUMPUR: The government needs to impose a ceiling on a guarantee for loans offered by statutory bodies and companies in order to avoid increasing government’s debt if the latter is facing difficulty in fulfilling its obligation.
In making this call, Auditor-General Datuk Nik Azman Nik Abdul Majid said the recommendation should be given attention to the follow-up the 2018 Audit Report on the federal government’s financial statements which found that loans made by five companies under the Minister of Finance Incorporated could not be paid back accordingly.
The five companies were KL International Airport Berhad, CoVco Holding Berhad, Asset Global Network Sdn Bhd, Jambatan Kedua Sdn Bhd, and Danainfra Nasional Berhad.
“In 2018, the companies were unable to fully pay the loan which made the government paying RM2.839 billion for guaranteeing the loans by the five companies under the Minister of Finance Inc.
“From the amount, RM1.753 billion was paid by the previous government while RM1.086 billion was paid by the current administration,” he said in a press conference at the Parliament in conjunction with the Auditor General’s report 2018, today.
Also present was Public Accounts Committee (PAC) chairman Datuk Dr Noraini Ahmad.
Therefore, Nik Azman said a policy should be drawn to include the ceiling on government guarantees by taking into account the country’s financial position and financial capabilities and the viability of the projects the company will finance.
Following the uncertainty of the five companies’ ability to repay the guaranteed loan, he said the AG had issued audit certificates which Emphasise on the Matter Paragraph (a matter of concern) to the government to follow-up on the matter. - Bernama
