Perak state MB Dato Seri Saarani on Friday has stated in the state assembly that the State Government has not incurred any losses or debt in the MAPS project.
MB also mentioned that the losses was not incurred by PKNP directly hence the state government did not suffer any losses. He cannot be more wrong.
MB’s statement is inaccurate and misleading as MAPS project is owned by PCBD a subsidiary of Perak Corporation Group.
It ought to be basic accounting that any losses suffered by the subsidiary will be consolidated into the group financial accounts. Which in this case all losses by MAPS will be reflected in PKNP group financial statements.
Similarly, all assets and liabilities of the parent and subsidiary will also be added together into the group financial accounts in which all liabilities owed by MAPS will also be reflected in PKNP group consolidated statement of financial position.
This is proven in PKNP 2017 annual report where it was stated clearly that for the financial year ended 2017, PKNP group suffered net losses of 440M compared to 7.5M losses for the previous year which was caused by the depreciation of the MAPS theme park which has started operation in 2017. The increase of administration cost and cost of sales also contributed to the losses before tax.
I urged the MB to immediately correct his inaccurate statement that the state government did not suffer any losses in MAPS. The state government must acknowledge the fact that the state government has suffered RM600 Million losses in the MAPS project and improve on the past mistake to ensure that the mistake of this huge scale of mismanagement and misadministration will never happen again.