GEORGE TOWN, Aug 1 ― Penang's falling debt was made possible by the federal government through a water restructuring agreement in 2011, minister Datuk Abdul Rahman Dahlan said today.
The Barisan Nasional Strategic Communications director said it was through the agreement that Putrajaya had converted RM655.24 million of existing state debt to 45 annual lease payments of RM14.56 million.
“In the same agreement, the federal government had also agreed to give a RM1.2 billion grant to the state government to expand the Mengkuang dam ― contrary to DAP's claim that the federal government does not help Penang,” he said in a statement.
He said DAP had continually alleged the federal government of not assisting the state financially, claiming 95 per cent of the state's debt reduction was thanks to Putrajaya.
He said Selangor had also benefited from a RM9.7 billion financial assistance package from the federal government in 2015 while Kelantan also received similar financial assistance in 2016.
He accused Penang of using this federal assistance to mislead the people by claiming credit for the debt reduction.
