Penang govt’s development spending comes under scrutiny
GEORGE TOWN: The DAP-led Penang government has come under fire for its performance highlighted in the 2016 Auditor General’s Report.
State Umno Liaison Committee chairman Datuk Seri Zainal Abidin Osman said the report, released earlier this week, had concluded that the performance of projects implemented by the state government did not live up to its Competency, Accountability and Transparency mantra.
According to the report, it was found that the Penang government generated a large revenue through land sales to enable it to finance its operating expenses, which had increased more than 500 per cent since the DAP took over in 2008.
The report stated that between 2012 and last year, the state government received a revenue of RM1,552.58 million from land premiums. Quit rents and change of land term premiums generated RM768.46 million.
Zainal said revenue involving land matters were RM491.87 million for last year, RM518.51 million for 2015, RM464.83 million for 2014, RM463.27 million for 2013 and RM383.56 million for 2012.
“We believe the sale of land is actually bigger than these figures as the state government offers instalment schemes to buyers.
“The Bayan Mutiara land, for example, was sold in 2011 for RM1.1 billion, offered via a fiveyear instalment,” he said yesterday.
Zainal said the state government allocated RM346.12 million for 2,868 projects last year.
“The state government claimed it spent RM307.45 million, or 88.8 per cent of the allocation.”
However, he said the report showed RM73.61 million was transferred from the Development Vault to the state Finance Department’s Trust Account, and as such, was deemed “spent’’.
The report revealed that 40 projects were called off and nine were postponed — projects which were under the chief minister’s office and state government secretary’s office, which received the largest allocation for development last year.
Fifteen projects under the Public Works Department were cancelled.
“This is clear proof that the state government had failed to plan and implement development in the state. If not, why was a large amount of funds allocated and yet not spent? Projects did not take off and funds were not spent. The Penang government is not transparent. Its administration is poor.”