Looks like Selangor is headed for bankruptcy

Lim Sian See

Yesterday, we were told that SPLASH had filed in court to sue the 100% Selangor-govt owned SYABAS for unpaid bills amounting to RM4.2 billion – which is more than the RM3 billion state reserves of Selangor.

According to SPLASH, the Selangor govt had only paid 30% of their bills to SPLASH since taking over SYABAS a few years ago.

A check with SSM also shows that for the latest financial year ending 31 Dec 2016 and tabled on 30 May 2017, SYABAS registered a net LOSS for the year of RM1.19 billion out of a revenue of RM1.87 billion.

Although Selangor Govt had not filed the 2017 statements yet, I suspect that FY 2017’s loss will be equally big or bigger.

This means that SYABAS cannot afford to pay SPLASH when they lose their case and the Selangor Govt will have to pay on behalf of SYABAS instead.

On top of this, the Selangor govt under Azmin Ali had also signed to borrow RM9.65 billion from the Federal Govt in the year 2015.

Also, the latest Auditor-General report for the year 2016 shows that under the second year where Azmin became MB, the Selangor govt posted a deficit for the year which amounted to negative RM145mil compared to the consistent surpluses in the previous years under former MB Khalid.

Selangor looks like yet another state fast heading for bankruptcy.

Syabas, MB Azmin.

No wonder he can only afford to use Grab car now.

Source: Lim Sian SeeĀ 

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