Lim: Hold open inquiry into ‘missing’ RM18 billion GST refunds
(FMT) – The finance ministry will propose to the Cabinet to hold an open inquiry into why RM18 billion in goods and services tax (GST) refunds was not transferred into a trust fund for this purpose.
Minister Lim Guan Eng suggested that this inquiry be headed by independent professionals.
He said he was waiting for a full report of an internal inquiry, headed by the new Treasury secretary-general Ismail Bakar, to be submitted.
The ministry will also co-operate with any authority, including the Malaysian Anti-Corruption Commission, investigating this matter, he said in a statement today.
Lim said former Treasury secretary-general Mohd Irwan Serigar Abdullah had not been completely truthful when he claimed that all GST payments were made into the government’s Consolidated Revenue account but did not explain why he refused to transfer RM18 billion into the GST refund trust account.
Irwan has lodged a report on the matter to the MACC.
Yesterday, Customs Department director-general Subromaniam Tholasy publicly stated that he had requested for RM82.9 billion to be transferred to the GST Refund Trust account at the monthly trust fund committee meeting, chaired by Irwan since 2015. But RM19.4 billion had still not been transferred in full as at May 31.
“If Irwan denies that the GST refunds payments are missing, why is it that taxpayers are still unable to receive their refunds, some for as long as three years?” Lim asked.
“Clearly, the refunds were not transferred and paid back to the taxpayers because the previous government had recognised such payments as revenue and used it to cover up its deficit, or pay for both operational and development expenses.
“This is wrong because the refunds are not government money or revenue to be used as the government deems fit, but are taxpayers’ money that must be returned to them.”
Lim had earlier revealed that the trust account only contained RM1.4 billion.
Lim wanted to know whether former prime minister Najib Razak didn’t give the authority to Irwan to transfer the RM18 billion into the GST Refunds trust account.
Lim said Najib needed to come clean on his role in the matter and prove his claim that the Pakatan Harapan government had spent RM18 billion in only three weeks after taking office, as he claimed in his social media posting.
“This is a shocking accusation by Najib, bereft of reason or truth. The PH government is now accused of a wrongdoing and delay in making GST refunds committed by the previous government.
“I had exposed in Parliament last week that the real reason for the inordinate delays by the previous federal government in making GST refunds, some of which were delayed for up to three years, was due to the previous government’s failure to transfer RM18 billion into the GST refund trust account.”
He maintained that the RM18 billion shortfall in refunds was not incurred within one month but built up over three years since April 1, 2015, the date when GST was imposed.
Lim said Najib’s accusation defied logic and was similar to Najib’s claims that 1MDB’s RM50 billion is not a financial scandal or a loss to the country, or the seizure of hundreds of millions of ringgit in cash, jewellery and 274 designer handbags are gifts to him, or that the RM3.5 million cash stolen from the Prime Minister’s Office by security guards belongs not to him but to Umno.
“Just as Najib must come clean on those scandals, he must also come clean on his role in the RM18 billion missing GST refunds scandal.
“Bear in mind that only the finance minister can instruct that GST refunds be delayed beyond the legally stipulated two-weeks period, or that GST payments be made into the Consolidated Revenue Account, instead of the GST refunds account.”
