The Public Accounts Committee (PAC) is not happy with the lack of transparency with off budget expenditure by Pembinaan PFI Sdn Bhd.

In a report published today, PAC said the off budget expenditure will raise doubt about the numbers published inside the budget and did not reflect the true government financial position including contingent liability numbers, deficit counts and government debts.

"All the allocations and expenditures for projects under PFI (private funding initiative) should be tabled and approved in Parliament. Other than that, all kinds of off budget expenditures similar to the PFI should be reported transparently," suggested the PAC.

Pembinaan PFI, a wholly-owned subsidiary of the finance ministry courted controversy after it was revealed that they received loans of RM20 billion from the Employees Provident Fund (EPF) to fund 547 projects under the Economic Planning Unit (EPU).

MOF using misleading statistics

Petaling Jaya Utara MP Tony Pua alleged that the finance ministry tried to use misleading statistics to paint a positive picture of the country's fiscal targets.

He said the companies, like Pembinaan PFI, hide their contingent liabilities without including their "off-balance sheet" expenditures.

"For example, one of these wholly-owned FMI (Finance Ministry Incorporated) subsidiaries, Pembinaan PFI, has borrowed and spent RM27.9 billion on various projects.

"However, none of these projects or expenditures was ever reflected in any of the budgets tabled over the past five years.

"The result is a significantly understated budget deficit," Pua ( photo ) said.

Treasury secretary-general Mohd Irwan Serigar had said the PFI debt level is manageable as all projects are viable over the long term.

He said the Malaysia’s debt level is still below 55 percent of the Gross Domestic Product and it is untrue that some PFIs may require a bail out.

“All the projects are viable and can survive on their own. They have been evaluated both technically and financially, while progressing very fast and within the government’s financing programme,” he added.

Kinibiz reported that emerging picture raises the question of whether Putrajaya’s PFI is simply an excuse to reward the select few.