Justify RM1.6b write-off for Perwaja Terengganu, Guan Eng tells Putrajaya

GEORGE TOWN, Oct 17 ― DAP secretary-general Lim Guan Eng today sought Putrajaya’s explanation for Perwaja Terengganu’s RM1.6 billion debt write-off given that the loss-making steelmaker is a public listed company.

The Auditor-General’s Report 2011 had revealed the write-off when detailing loans owed to Putrajaya by companies and state governments.

“Perwaja Terengganu is a public listed company so it should be able to pay up the debts,” Lim (picture), who is both Penang chief minister and Bagan MP, told reporters here today.

He said the federal government’s move to write off the debt is bad as it will encourage other companies to stop paying up their debts.

“This will tell others that if you pay up your debts, you don’t get anything but you have everything to gain when you default in your payments as your debts will get written off,” Lim said.

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