Cancelling Loan Guarantee For Penang Lrt Is Political Vendetta Dap Mp

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Putrajaya's decision not to grant a loan guarantee to the Penang government to finance the state's Light Rail Transit (LRT) project is a political vendetta, claimed a DAP lawmaker.
Steven Sim (above), who is the MP for Bukit Mertajam in Penang, lambasted the federal government's move in a statement today.
He said guaranteeing the RM2 billion loan was "the least" the Perikatan Nasional (PN) government could do for Penang.
"The federal government's announcement to cancel the RM2 billion loan guarantee for the development of Light Rail Transit (LRT) in Penang is a disappointing, despicable act of political vendetta against the state and people of Penang.
"The said loan is to be secured from the Asian Development Bank (ADB), a reputable regional development financial institution. The state of Penang is not asking for a loan or money from the federal government for this project. A federal loan guarantee is the least that the federal government can do for Penang," he said.
It was reported that the PN administration has decided to withdraw from providing the guarantee for Penang's loan, which was to partly finance the RM9.5 billion LRT project.
Finance Minister Tengku Zafrul Abdul Aziz, said the decision was in line with the government's revised revenue and income projections for the country.
Sim, who is a former deputy youth and sports minister, criticised Putrajaya for the move, as the latter is funding other multi-billion ringgit projects.
"It was recently announced that the federal government will develop a monorail system in Putrajaya and fund the RM6 billion-transit system in Kuching under the 12th Malaysia Plan.
"While multi-billion-ringgit transport projects are being funded by the PN administration in other states, Penang’s loan guarantee was disappointingly cancelled. This is despite Penang being the second-highest tax contributor to the country," he said.
He urged the federal government to reinstate the loan guarantee or fully fund the Penang LRT project. - Mkini

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