Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 28th of October 2014
In my budget speech yesterday, I highlighted a number of companies which repayment arrears on their federal government loans which run into millions and sometimes billions of ringgit. They include a number of private companies as well as some companies which are owned by the government via the Ministry of Finance Incorporated and Khazanah Nasional.
The repayment arrears of these companies were listed out in Schedule 2.28 of the Financial Statement and Financial Management of the Ministries / Agencies of the Federal Government as part of the 2012 Auditor General Report. For example, Perwaja Steel Sdn Bhd and Equal Concept Sdn Bhd, which holds an indirect stake in Perwaja Steel, were listed as having arrears of RM32.27 million and RM22.5 million in year ending 2012. The report also showed the amount of the outstanding loan which had to be serviced by these companies and the amount paid by these companies. For example, Perwaja Steel and Equal Concept’s loan repayments were listed as RM30.42m and RM21.57m respectively. Both companies failed to pay a single cent of their loan repayment in 2012.