NAJIB: MAYBE GOVT USED GST REFUNDS MONEY FOR EXPENSES

It could be to cover expenses following zero-rating of GST, says ex-PM

DATUK Seri Najib Razak has dismissed Finance Minister Lim Guan Eng’s allegation that RM18 billion from the Goods and Services Tax (GST) refund account had gone missing.

Instead, the former prime minister said it was possible that the new government had spent money that was in the consolidated fund to cover expenses when it zero-rated GST from June 1.

“What probably happened is that when they zero-rated GST, businesses immediately rushed to get back their input tax credit.

“However, the government had lost its income from GST collection for three months, and the Sales and Services Tax (SST) has yet to be implemented. Therefore, it is possible the government used money from the consolidated account to cover its monthly expenses.”

Najib, who is former finance minister, said as a result of losing revenue from GST and spending money from the consolidated fund, the Pakatan Harapan government needed a scapegoat.

“They faced problems paying those people who were demanding their GST refund payments.

“As usual, they needed someone to blame and immediately started pointing fingers at Barisan Nasional even though the mistake is clearly theirs.”

Najib said Lim’s allegations that money from the refund account had gone missing was politically motivated and untrue.

“It is similar to his previous allegation regarding the gas pipeline project involving a China-based company. Lim and (Damansara member of parliament) Tony Pua issued slanderous statements that the company had conspired with Barisan Nasional to launder money.

“However, Lim has remained silent after the company denied the allegation.”

He said like any other tax or revenue collection, all GST earnings were paid directly into the government’s consolidated revenue account.

He said from there, funds were paid to the GST refunds trust account monthly for repayments to be made.

“This is allowed by law and conforms with the GST Act 2014, which was debated in Parliament where PH leaders were present, including our current finance minister, so he should know.

“Therefore, no money was ‘robbed’ as GST collections were in the consolidated revenue account,” he said in a statement.

He said there was “every possibility” for the government to add the “BN robbed RM18 billion” allegation to its “self-created RM1 trillion national debt” claims.

This, he said, would be added to the list of excuses the government used to justify its inability to deliver on its manifesto promises.

“It is possible they may also cut or abolish aid to the people or not make the refund payments.”

He said he was willing to work with anyone as police and Malaysian Anti-Corruption Commission (MACC) reports had been made and the Public Accounts Committee had also said it planned to hold an inquiry into the RM18 billion “robbery” claim.

“I will provide my full cooperation as former finance minister so that the truth can come out.

“If the allegation is found to be untrue, it will be clear that Lim has misled Parliament by making such a serious allegation.

“I hope the Parliament speaker will no longer protect Lim as Parliament is not a place to make such baseless and serious politically motivated accusations.”

The controversy on the missing money started when Lim claimed in Parliament on Wednesday that BN had “robbed” RM18 billion in GST refund claims.

He said the government had failed to pay GST claims amounting to RM19.4 billion up to May 31.

Rembau member of parliament Khairy Jamaluddin was expected to lodge a report on the matter next week with MACC.

Khairy’s media officer, Raja Syahrir Raja Abu Bakar, told the media about Khairy’s intention in a WhatsApp message yesterday.

“Please be informed that Rembau MP Khairy Jamaluddin will lodge a report with MACC on the accusation made by the finance minister that RM18 billion has been stolen. Time and date will be (announced) later,” he said.