I put something up quickly so that Malaysians can go through the number ourselves and see how much money escapes our system each year. Just by taking two quick steps, there is almost 3 times more money to pay for the pledges made in Buku Jingga. Not only that, we will have more than enough to pay other things too (including new jails for all corrupt politicians who had enjoyed enriching themselves at the expense of the people all this while!).

The response is crude as I was rushing, but the no’s speak for itself.

I welcome any comments :-)

A) PHILOSOPHICALLY

- BN has always said that many things cannot be afforded or it will bankrupt the country, especially the ones that involve direct assistance to the people

- In the past, the kind of massive state assistance now implemented in Selangor and Pulau Pinang would have been unthinkable under BN, as they claimed the government lacked money

- Since taking over, PR government in Selangor has spent approximately RM150 million per annum giving back to the people, in the form of free water scheme, one off bursary for university students, microcredit etc.

- The reason why PR could do it and BN never had done, because we plugged the leakages caused by rampant corruption

B) HUGE LEAKAGES DUE TO CORRUPTION

- Auditor General’s report estimated that the country lost RM28 billion a year due to corruption – shoddy procurement practices, incomplete projects, massive cost escalations etc.

- Even without coming up with any fancy national financing schemes or new loans, by tackling corruption there is a potential RM28 billion that will be used to fund all these programs

- These amounts are real, it is the money lost each year to cronies. This amount should go back to the people

- Likewise, putting a stop to excessive and wasteful spending by government will also set the right spending culture e.g. stop PM’s frequent overseas trips to the point he spent almost an equal time overseas than in Malaysia, or the huge consultancy fees paid to APCO (RM77 million) or for the setting up of PEMANDU (RM66 million) – BN may argue this amount is small, but it’s a reflection of careless and carefree spending culture that ignores the plight of the people

C) RE-DIVERTING CORPORATE SUBSIDIES BACK TO PEOPLE

- Each year, PETRONAS has to fork out RM19 billion to pay for gas subsidies so that IPPs (owned by cronies or political establishment) can enjoy massive profits (billions each year) because they are shielded from the fluctuations or energy price

- PETRONAS has to buy gas from Natuna and JDA at much higher prices, then sell to IPP at a third of the market price – this amounts to RM19 billion each year

- If this arrangement is abolished, there is RM19 billion extra profit that PETRONAS can pay back to the government/people

- Similarly, the government spent RM4 billion each year to pay compensation to highway concessionaires – this amount can easily be reverted to people if the toll system is restructured, as promised in Buku Jingga

D) TOTAL SUM AVAILABLE

- Just by plugging the leakages due to corruption (RM28 billion) and eliminating corporate subsidies to IPP (RM19 billion) and toll compensation (RM4 billion), there is a sum of RM51 billion each year that escapes the system and went to cronies

- This amount is more than enough to pay for the promises of Buku Jingga

E) HOW MUCH DOES IT COST TO IMPLEMENT 100 DAYS REFORM

- Special allowance for teachers: RM3.2 billion annually

- Petrol and diesel subsidy for the needy group (those below a certain income threshold), after the restructuring of subsidy so that only those from lower income group can benefit: estimated RM4 billion annually

- LPG subsidy: estimated RM4 billion annually

- Total subsidy payment and special allowance promised in Buku Jingga: RM11.2 billion

- Price offered by EPF & Khazanah to take over the entire assets and operations of Plus highway is RM23 billion. Currently government investment arm and agencies (through Khazanah and EPF) already own 67.3% of PLUS, so the additional cost to return the whole assets and operations to government (by buying from minority shareholders) is RM7.5 billion

F) TOTAL SUM PAYABLE TO IMPLEMENT BUKU JINGGA

- Total sum is RM3.2 b (special allowance) + RM4 b (petrol/diesel subsidy) + RM4 b (LPG) + RM7.5 b (payment to minority shareholders to take over PLUS) = RM18.7 b

- This amount is a small sum compared to the RM51 b available from restructuring of subsidies and elimination of corruption

It’s clear that the issue of whether we can afford to pay does not exist. It’s whether there is a political will, especially when BN is so determined to dismantle fuel subsidy but did not lift a finger on gas subsidies for IPP.

What say you, still we cannot afford? Or Najib does not want to afford? Ha2.

 

8 Responses to Quick Response to PM’s Challenge on How PR Will Fund Buku Jingga Promises

  1. [...] This post was mentioned on Twitter by Nik Nazmi , Muhd Najmi Samsudin and others. Muhd Najmi Samsudin said: Yg bankrap waktu itu adalh mrk yg hidup korup"@rafiziramli: Wrtwan tnya respons kpd tudhan PM bhwPR akn bankrapkn ngra.http://bit.ly/edOvaX [...]

  2. zach says:

    It is certainly mind boggling for Najib to say that PR’s 100 day agenda will bankrupt the country
    That’s funny because his own state of Pahang is on the brink of bankruptcy due to Adnan Yaakob’s constant plundering of the state coffers for his cronies ans ultimately his pockets

  3. asya says:

    the main problem now is when malaysian itself dont care about the corruption that is obviously going on. they always believe that we should just be grateful for what we have now. i had asked randomly to few old folks, and they said that they knew about the corruption, so what is the problem ? without BN there will be no freedom & peace in Malaysia. what the…..

  4. Charli8 says:

    ONE OF THE PAST PM HAS CREATED THIS MULTI-LEVEL CORRUPTION SYSTEM IN THE 80′S, SHORTCUT TO RICHES AND EVEN FILTHY RICH. JUST IMAGINE THE AMOUNT IN 25 YEARS ??? THIS AMOUNT CAN PUT M’SIA IN WORLD MAP – BEST IRRAGATION AND DRAINAGE SYSTEM TO PREVENT FLOODING, LOW CRIME RATE AND NO MAT RAMPIT, BEST INTEGRATED TRANSPORT SYSTEM, GOOD SALARY FOR CIVIL SERVANTS,
    MINIMUM WAGES ETC ETC. YOU NAME IT. SADLY TO SAY 55% OF PENGUNDI STILL SO IGNORANT AND BLINDED TO VOTE UMNO/BN BASED ON FEAR FACTOR. PLS HELP SAVE MALAYSIA FOR OUR GRANDCHILDREN BCOS’ THEY’LL PAY FOR OUR MISDEED IF WE VOTE UMNO/BN.

  5. semuanya OK kot says:

    Dear Malaysians, please do not be distracted. While it is only right that you swat the corrupt vermin around you, please focus on the billions, not millions. Otherwise, it will soon become trillions, and you will all be – essentially – bonded labourers paying off big loans you took out to subsist.

  6. NanoNano says:

    Don’t forget the RM8billion lost on PKFZ. Another RM4billion of interest on the way.

  7. ifzal says:

    Honestly the numbers in this buku jingga plan is plucked from the air… Your assumption is too simplistic and targeted more to appease the consciousness of the people rather than groudned on something tangible.

    The assumption on corruption is really sad.. sure, there’s corruption, no one doubt that but you are assuming that under PR there wont be any corruption.. that is clearly BS. Dont think for even once you can insult our intelligence by assuming zero corruption or malpractices under PR. Afterall PR, esp PKR is full of BN ‘has-beens’.

    I agree that the IPP contracts are lopsided. However, there’s also another issue on sovereign risk that need to be taken into cosndieration ie when a govt gives guarantees and it fails to honour it, it will jitter investor’s confidence on doing ivestments here… they will put more risk premium, increase the borrowing rate in the country which willl then affect the viabilities of SMEs which are the backbone of this country. I dont expect saudara rafizi to understand this having worked in petronas and pharmaniaga before, but check with the people on the streets and you’ll understand.. The fact is the current govt has been trying to renegotiate with the IPP owners, but they are conscious not to trigger a sovereign crisis (at least from a financial market point of view) by renegading on the IPP contracts.

    I can understand this plan is targeted to win the next election but please be grounded on reality. You can bluff the uninformed, but not those who know how reality works… Please do more homework on how the system works.

    Good luck…

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