PKR's Pandan MP Rafizi Ramli today labelled the government's restructuring of RM876 million in debts as a "bailout" and a "write off".

 

In the Parliamentary order paper today, the federal government tabled two motions to separately convert RM400 million and RM476 million debts, given to Malaysia Debt Ventures (MDV) and Prasarana respectively, into equities and stakes in the companies.

 

"Now the government can't collect the RM876 million from these two debts, but instead it would still need to service the debts that the government had earlier accrued, to fund these companies," Rafizi said in a press conference at the Parliament lobby.

 

This is also adding to the government's liabilities, he said.

“This action shows that the companies are unable to repay debts until the government had to take over the debts,” Rafizi said.

“When this is left like that, the government’s debt and risk of having future losses will be fully borne by the government,” he added.

He said that Prasarana’s inability to service the debt also means that it has “failed” in effectively managing the public transportation system.

“I condemn Prime Minister Najib Abdul Razak’s actions to always hide major debts by way of equities,” he said.

Related stories

Jagdeep slams 'empty vow' over PR1MA housing

DAP shocked teacher growth budget slashed

Ahmad, don't make 1MDB promise you can't keep

Stop protecting oil firm profits, Rafizi tells KJ

Think tank: Correct flaws in 1BestariNet

Cancel all dealings with Chinese firm, gov’t urged

Terengganu denies China company mining iron ore

PM should use Parliament instead of the court