Explain RM100mil cash advance, worsening finances, Guan Eng tells Chow

Explain RM100mil cash advance, worsening finances, Guan Eng tells Chow

GEORGE TOWN: Former Penang chief minister Lim Guan Eng is demanding that his successor, Chow Kon Yeow, explain the deterioration of the state’s finances which led to the administration requesting RM100 million in advance from the federal government.

Lim (PH-Air Putih) said the state’s consolidated revenue plunged to RM50 million in 2024 from the RM1.15 billion recorded in 2019, representing a RM1.1 billion drop in five years.

“This shows a financial deficit due to excessive spending. Can we be given a detailed breakdown of how this money was spent?” Lim said during the debate on the motions of thanks to the governor in the state assembly today.

The former finance minister said although the state had reported a surplus of RM65 million as of March 31 this year, that figure had already dipped to RM43 million by May 2.

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He said that while efforts to raise revenue and cut spending were welcome, they must not come at the cost of slashing any assistance to the public.

Lim also questioned the state’s debt to the Penang Development Corporation (PDC), which now stands at more than RM300 million.

He said this was in contrast to Chow’s 2023 claim that the state owed PDC nothing.

“How can the state suddenly owe hundreds of millions in under two years? Why was inaccurate information given to the state assembly?” he said.

He criticised the handling of the controversial Batu Kawan land deal totalling 226ha.

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He said the land was first offered through direct negotiations to Umech Construction Sdn Bhd for RM646 million. After an outcry, the sale was cancelled and put up for open tender.

The highest bid of RM818 million was offered by a consortium led by IJM Properties, but the tender was cancelled and re-tendered at a lower price.

“Is this true? Can we be assured that the land will now be sold for more than RM818 million?” he said.

Lim also highlighted delays in the RM21.6 million Jalan Tok Kangar to Juru Auto City road widening project undertaken by PDC, which started in 2019 and is only expected to complete by end-2026.

He asked why there was a lack of enforcement against contractors and whether PDC officers were being held accountable.

Separately, he asked for an annual RM10 million allocation to the RIBI (non-Islamic houses of worship) trust fund, saying that only RM12.2 million had been disbursed since 2018, or less than RM2 million yearly.