I am surprised however that the latest Auditor-Generalís Report on the Federal Government 1998 which has just been tabled in Parliament shows a completely different picture.
Kelantan State Government does not head the list of state governments with the biggest unpaid loan arrears to the Federal Government as at the end of 1998, which goes to the Johore and Kedah state governments which owe the Federal Government in unpaid loan arrears the staggering sum of RM229.78 million and RM225.54 million respectively.
The third state in the list is Sarawak State Government, whose unpaid loan arrears stand at RM86.22 million. Kelantan comes fourth at RM44.88 million, followed by Pahang at RM44.88 million, Terengganu at RM27.34 million and Sabah at RM24.53 million.
The Barisan Nasional state governments of Johore and Kedah should explain why they have the biggest unpaid loan arrears to the Federal Government, each about five times that of the PAS Kelantan state government, when Barisan Nasional claims to be more competent and efficient than PAS.
The 1998 Auditor-Generalís Report also reveals that there are six statutory bodies and three government companies whose unpaid loan arrears to the Federal Government as at the end of 1998 exceed that of the Kelantan state government - in one case by as much as over 20 times!
The six statutory bodies which have unpaid loan arrears to the Federal Government more than the Kelantan State Government are:
Perbadanan Aset Keretapi
Bank Pertanian Malaysia RM324.83 million
Lembaga Lebuhraya Malaysia RM160.32 million
Lembaga Letrik Sabah RM140.37 million
Lembaga Air Perak RM122.69 million
Lembaga Kemajuan Pahang Tenggara (DARA)RM 61.46 million
The three government companies which have unpaid loan arrears to the Federal Government greater than the Kelantan State Government are:
Perwaja Terengganu Sdn. Bhd.
Equal Concept Sdn. Bhd. RM105.35 million
Bank Pembangunan Malaysia Bhd. RM 47.71 million
These are most shocking and frightening revelations in the 1998 Auditor-Generalís Report showing a Federal Government which is careless about its financial responsibilities, where it could allow unpaid loan arrears to total RM712 million for State Governments, RM1,423 million for statutory bodies and RM1,133 million for government companies.
What is even more shocking is that after the Perwaja had chalked up RM2,985 million in accumulated losses and RM6,939 million in liabilities as at 31.12.1995, making it the biggest financial scandal in the history of Malaysia, the Federal Government could still give it two loans totalling RM1.66 billion in 1997 and 1998 in which no letter of agreement was signed between the steel mill and the government.