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Wednesday, October 29, 2014

Why let off GLCs in the red, but hunt student-loan dodgers, asks DAP

Serdang MP Ong Kian Ming is puzzled why Putrajaya continues to pursue student-loan debt-dodgers while a number of government-linked companies in the red are getting off scot free. – The Malaysian Insider pic, October 29, 2014.Serdang MP Ong Kian Ming is puzzled why Putrajaya continues to pursue student-loan debt-dodgers while a number of government-linked companies in the red are getting off scot free. – The Malaysian Insider pic, October 29, 2014.Even as Putrajaya continues to pursue student-loan defaulters, a number of government-linked companies (GLCs) which owe billions in taxpayers' money are either given a free pass or bailed out, a DAP lawmaker said today.
Serdang MP Ong Kian Ming cited the 2012 Auditor-General's Report and said nine GLCs had outstanding federal loans totalling RM4.5 billion by the end of that year.
"The total arrears for the GLCs was RM1.3 billion at the end of 2012. They were supposed to pay RM640.4 million in repayments in 2012 but only managed to pay RM221.98 million (35%)."
Also in debt were Indah Water Konsortium (IWK), controlled by MoF Incorporated; Columbia Aircraft Manufacturing Corporation, controlled by CTRM; and Malaysia Technology Development Corporation (MTDC), controlled by Khazanah.
IWK failed to service a single sen of its RM165.58 million repayment in 2012 and had an outstanding loan of RM1.94 billion at the end of 2012 which increased beyond RM2 billion, said Ong.
But Cyberview, the master developer for Cyberjaya, had after-tax profits of RM4.7m in 2013; Malaysian Debt Ventures had after-tax profits of RM23.7m in 2013; and CTRM had after-tax profits of RM12, in 2012.
"Why does the government lack the internal processes to ensure that these companies, especially those which are profitable, adequately service their government loans?
"Why do these companies seem like they are getting a ‘free pass’ while millions of other PTPTN borrowers are given far harsher treatment including the possibility of a credit blacklist?"
He also asked how much Putrajaya would continue to spend to bail out firms such as IWK, which registered a loss of RM213 million and had negative reserves of RM1.2 billion with a share capital of only RM100 million.
"Why is the government inconsistent in wanting to exert financial discipline on PTPTN borrowers while at the same time, it continues to bail out these government owned companies?"
85,000 National Higer Education Fund Corporation (PTPTN) loan defaulters are on the Immigration Department's travel blacklist, The Star reported on October 14.
PTPTN chief executive officer Agus Cholan told the daily that the corporation resorted to barring the loan defaulters from leaving the country as they had ignored repeated reminders to repay their loans.
On October 9, Second Education Minister Datuk Seri Idris Jusoh said that PTPTN loan defaulters would be given three months to discuss how to repay their outstanding amount, or their names will be included in the Central Credit Reference Information System.
- TMI

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