Lim: Was Najib responsible for shortfall of GST refunds?

PETALING JAYA: Finance Minister Lim Guan Eng has raised questions over former prime minister Datuk Seri Najib Tun Razak’s role in the RM19bil shortfall of Goods and Services Tax (GST) refunds.

He said although monthly meetings of the Trust Fund Committee were chaired by former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah, decisions had to be approved by Najib who was finance minister at that time.

“While Irwan is responsible for the 121,429 companies and individuals not getting back their GST refunds amounting to RM19.4bil, his decision must be approved by the Finance Minister,” said Lim in a press statement yesterday.

He questioned if Najib approved Irwan’s decision not to transfer the full RM82.9bil to the GST Refunds Trust Account as requested by the Customs Department.

Customs director-general Datuk Seri Subromaniam Tholasy confirmed that his department had requested that RM82.9bil be transferred to the GST Refunds Trust Account but only RM63.5bil was transferred, Lim said.

Lim also questioned whether Najib had authorised that GST refunds not be made within two weeks as required by law.

“Did Najib approve that the GST refunds (that were) not paid back since 2015 (to be) instead recognised as government revenue to be used as the government pleases?”

He said that the new government is committed to returning the refunds that had been withheld by the previous administration, beginning next year.

Lim had earlier announced that the amount left in the GST Refunds Trust Account was about RM148.6mil, when it should be RM19.4bil.

Of the 19.4bil unpaid GST claims, RM9.2bil was from 2018, RM6.8bil from 2017, RM2.8bil from 2016 and RM0.6bil from 2015.