Finance Ministry withholds funding to Perlis
KANGAR: Development projects worth more than RM1bil in Perlis have hit a snag after the Finance Ministry withdrew funding.
The state government received a letter from the ministry a few days ago stating that it would not receive the funding for the projects.
Mentri Besar Datuk Seri Azlan Man said he would meet Prime Minister Tun Dr Mahathir Mohamad on the issue as soon as possible.
“Most of the projects were approved under the 11th Malaysia Plan and it would affect the socioeconomic growth of the state if the projects are postponed,” he said when met during the 14th state Legislative Assembly here yesterday.
Azlan said stopping these projects now would have a negative impact.
“While a few of the projects are private initiatives, we still need funds to jump-start the projects,” Azlan said.
With limited revenue, Perlis has long been dependent on funding from the Federal Government for development.
The state is controlled by Barisan Nasional which has nine seats in the 15-seat legislative assembly.
Raja of Perlis Tuanku Syed Sirajuddin Putra Jamalullail during his opening speech at the assembly on Monday had warned the state not to be too dependent on the Government and urged it to diversify its revenue.
Azlan had on Tuesday said that almost RM100mil in funding to build new water treatment plants and non-revenue water projects had been stalled for the same reason.
He, however, declined to comment on the statement by former Perlis Umno chief Datuk Seri Shahidan Kassim on the Mentri Besar issue at Parliament on Tuesday.
“No comment,” said Azlan, showing a sign that his lips are sealed.
Shahidan, who is the Arau MP, had sought clarification from the Federal Government on Article 39(4) and Article 39(2) of the Perlis state constitution whether the appointment of Azlan as the mentri besar was justified.
The state assembly was adjourned sine die after meeting for two days.