Media statement by Lau Weng San in Petaling Jaya on Tuesday, 1^st June 2010:

The Federal Government should come clear of all its financial scandals before even talking about reducing subsidies

Unless the Federal Government is ready to explain to the people of all its financial scandals in the past, and fight all the way to reduce corruption and leakages in the federal budgets, else it has no moral authority to reduce subsidies.

I found that media had in the past two weeks focused on the intention of the Federal Government to reduce subsidies, coupled with statement that the debt of the Federal Government has increased to over RM300 billion, the Federal Government will go bankrupt in nine years and the oil price in Malaysia is even lower than Somali. Economic experts also commented that high subsidies are causing distortion to market economy, causing negative impact to our economy.

I feel that all these are meaningless talks if we choose to ignore the leakages in the Federal Government's spending since decades ago.

I believe majority of the citizens will definitely agree to reduce subsidies for the sake of the nation. But at the same time, citizens are also demanding that the Federal Government should adopt the same principle when dealing with subsidies and people's wishes. If Malaysia being a nation blessed with so many natural resources, what is the need of reducing subsidies? When have all these resources gone to?

Prime Minister Najib had made an infamous "I help you, you help me" statement in Sibu. He said in Sibu that he wanted to have a "deal" with the people of Sibu. Now, all Malaysians should request a "deal" with the PM too.

We can help the Federal Government if the Federal Government can help us, that is a reduction in subsidies is possible but the Federal Government must explain all the previous financial scandals amounted to not only millions, tens of millions, hundreds of millions, but also billions and tens of billions of ringgit, ranging from the 1980s Maminco scandal, Bank Bumiputera scandal, Bank Negara¡¯s forex scandal in the early 90s, Maika Holding scandals, financial crisis in 1997, bailout of various GLCs like MAS, Proton etc as well as the most recent RM12.5 billion PKFZ scandal. We can see the Federal Government's hands in these scandals. How much had we spent to bail them out?

Moreover, is the Federal Government prepared to reveal in full the account of Petronas to the people? Major GLCs' revenues are improving year by year. Pre-tax profits of PLUS, TNB and Petronas are RM1.62 billion, RM1.54 billion and RM1.23 billion in FY2009 and yet the government is claiming that it is going to bankrupt in nine years and that the people will have to pay more for their toll, electricity tariff and petrol. What are the reasons? Where are leakages?

Is the Federal Government willing to implement full and complete open tender system? Is the Federal Government prepared to answer why the Ministry of Defense (Mindef) spent RM8 billion to purchase 257 armoured personnel carriers, which cost RM27 million more than market price?

Is there any reason to explain why the escalation of construction cost of Shah Alam Hospital to RM48 million? Even for the purchase of shoes, furniture, instant coffee powder, chili sauce etc, the Ministry of Finance (MoF) under Najib is directing all Federal Government agencies to only procure from selected suppliers. What is the reason for doing so? And why is the registered address of one of the suppliers is located at Wisma UMNO Pahang? Can there be any guarantee from the Federal Government that roof-collapsing incident like in the Kuala Terengganu Sultan Mizan Zainal Abidin Stadium will forever be a history of the past?

The Federal Government must explain to the people before it can take away subsidies from the people and I am here to ask: Dear Mr Prime Minister, the people can help you, but are you going to help the people? Can we strike a deal?

* Lau Weng San, SA for Kampung Tunku