Media statement by Lim Guan Eng in Kuala Lumpur on Friday, 10^th June 2011: 

Penang has an unblemished record of surpluses since we took over from BN 

MCA should stop believing its own lies when MCA President Datuk Seri Dr Chua Soi Lek claimed in a Malaysiakini interview published fully in The Star today that, "Penang had allowed the water tariff to increase by 20 percent while Penang was now running on a deficit budget, which he expects to deepen next year."

This is untrue as Penang PR has an unblemished record of 3 straight years of surpluses since we took over from BN in 2008 by relying on corruption-free and good governance based on CAT. This has been confirmed by the Auditor-General's Report that Penang is the best financially managed state for two years running. Penang is the only state or Federal government in Malaysian history that has been praised by Transparency International for fighting corruption.

Penang recorded the highest budget surpluses in history with RM88 million in 2008, RM 77 million in 2009 and RM33 million in 2010. The budget surplus would have been RM92 million in 2009, if not for the state government paying RM15 million to the High Court due to the Tang Hak Ju land scandal caused by the previous BN government.

It is this healthy financial management by the state government that allowed Penang PR to distribute RM12 million yearly to Sekolah Agama Rakyat, mission, Chinese, Tamil and Sikh schools. Was RM 12 million given to these schools yearly by the previous BN state government?

Penang did not increase water tariffs for domestic users, which is heavily subsidised, but imposed a water conservation surcharge on those who waste water. Chua is being dishonest by deliberately distorting this difference. In fact the failure by PR to increase water tariffs for domestic users has been severely condemned by NGOs who wanted steep tariff increases to reduce water wastage.

Only water tariffs for business were increased to equivalent to production cost. If Chua is unhappy about such increases, why did he not oppose the water tariffs increase in Johor, until water tariffs in Johor is 3-6 times higher than Penang?

Penang still enjoys the lowest water tariffs for both domestic and business in the country. Due to the low water tariffs, Penang suffers the highest consumption of water at 291 litres per person per day in 2010 as compared to the national average of 205 liters.

Penang PR's sterling financial performance is not limited to the state government's administration but also turning around and saving MPSP from bankruptcy. From 2000-2007, MPSP suffered record deficits every year, losing and spending RM230 million by the previous BN state government. MPSP was practically bankrupt when PR took over.

However in only one year, PR CAT's governance managed to rescue MPSP from financial bankruptcy by recording a small surplus in 2008 and surplus again for all 3 years as follows:-

2008 - RM 3 million

2009 - RM 15 million

2010 - RM 23 million

Chua is in saying that "BN has a lot of weaknesses, corruption, abuse of power and it is not living up to its words" The disappearance of RM230 million in MPSP and the RM40 million Tang Hak Ju land scandal is the best example of such corruption and abuse of power. As for BN not living up to its words, perhaps Chua should refer to his predecessor's statements of Chua's broken promises made during their bitter MCA presidential elections.

There is no doubt the Penang under PR has performed so far better than BN. This confidence is reflected by the Penang recording the largest investment in history and being No. 1 in Malaysia with RM12.2 billion. Penang has also the highest reduction in crime index in the country with a drop of 27% and No. 1 in health tourism and air passenger growth (25%) in the country.

Chua should seek truth from facts and not seek lies by twisting facts to gain popularity and attack PR. PR is not perfect and willing to correct any mistakes made but PR is different from BN in that PR does not indulge in corruption or cronies.

*Lim Guan Eng, DAP Secretary General & MP for Bagan