PETALING JAYA: Penang and Selangor are states with the least arrears owed to the federal government, according to the 2016 Auditor-General’s Report released today.
Selangor had only RM14.67 million in arrears, while Penang does not owe the federal government anything.
In contrast, the report showed that as of Dec 31 last year, Pahang and Kedah had the highest arrears of RM1.087 billion and RM1.028 billion respectively.
The report said the states did not pay back a sum of RM4.23 billion, in loans, to the federal government.
It said by the end of 2016, 432 from the total 906 payments were not repaid to the Treasury, according to the period of repayment which was between one to 22 years.
“The arrears in payment has increased by RM240 million, from RM3.99 billion in 2015 to RM4.23 billion last year,” the report noted.
The A-G quoted the Treasury on May 5 as stating that most loan arrears involved water supply projects, low-cost housing projects and state economic development projects.
It added the arrears on water supply projects would be settled once they were taken over in stages by the Water Asset Management.