DAP's Balakong assemblyperson Eddie Ng Tien Chee today challenged the Customs Department to court over its statement that the claim by 12 Selangor local councils for the goods and services tax (GST) reimbursements were dubious.

In a statement, Ng said he was shocked by Customs director-general T Subromaniam's "crazy" statement, which he said was an insult to all the local councils' servants.

"Subromaniam should justify his 'ridiculous' statement. Why should the local councils create false claims by paying the six percent GST and then submit for a refund? Is there nothing better to do?

"Since Subromaniam said the claims are false, I would like to challenge him to bring the matter to court and let the court decide, for we should know who is telling lies, then," Ng said, adding that otherwise, Subromaniam should issue a public apology for his statement and pay the reimbursements immediately.

Should there be any doubts regarding claims for reimbursements, the Customs Department should have written to the said local councils, asking for supporting documents, instead of holding back the payment, he added.

Earlier this week, Subromaniam was quoted as denying the accusation that his department owed more than RM36 million in GST reimbursements to 12 local councils in Selangor, as alleged by Ng earlier this month.

"It is true we did not pay. But we did not pay because the statements submitted by the local councils were dubious," Subromaniam was quoted as saying, and warning parties against filing incorrect returns to his department.

The DG had then acknowledged that a legal recourse would be the last resort in such matter.

On July 4, Ng said at a press conference that the reimbursements owed were for infrastructural works done by the local councils, such as road upgrading and works pertaining to the Malaysian Road Records Information System (Marris).

Below is a list of the councils involved and the amount purportedly owed by the Customs Department.