KUALA LUMPUR: The Public Accounts Committee (PAC) has confirmed that the previous government had used the Goods and Services Tax (GST) collections for other purposes, said Finance Minister Lim Guan Eng.
He said this had caused a RM19.25 billion shortfall in the Fund for GST Refunds as there was only RM150 million left in the fund as of May 31, 2018.
“As stated by the Accountant General’s Department in the PAC report, the RM19.4 billion that was supposed to finance the relevant GST refunds was used by the previous government to fund its operating and development expenditure.
“This was despite the Royal Malaysian Customs Department admitting that RM19.4 billion had yet to be paid out due to insufficient fund in the Fund for GST Refunds,” he said in a statement today.
Lim also assured that the Ministry of Finance would not repeat such action.
“The Finance Ministry will respect the two principal recommendations in the report to ensure that the legal contraventions and financial non-compliance where monies meant for GST refunds were used for other government expenditures will not be repeated in the future,” he said in response to the PAC’s recommendations.
PAC recommended that the administration must fully comply with the law, especially with regards to the implementation of financial procedures so that the financial administration system is better organised and more accountable.
The committee also recommended that the government officers entrusted with the relevant responsibilities must always advise the administration on matters about the law, procedure and statistical information without fear or favour, especially relating to cash flow management and financial discipline to achieve greater accountability. – Bernama