- Mighty Ducks Project
- Economic Reports
- Pemilihan AMK 2010
- Saman SYABAS
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
- 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.