Repayment of debts and not being able to account for money that is lost are two different things, said Tun Dr Mahathir Mohamad.
In his effort to clear up the "confusion" between the two, the former premier opined how the loss of funds in 1Malaysia Development Berhad (1MDB) has led to the implementation of the Goods and Services Tax (GST), and how 'the rakyat have been made to become poorer in order to enrich the Government'.
Below is the latest posting from Dr Mahathir's blog, chedet.cc today:
On 1MDB
"There seems to be some confusion over repayment of debts and the loss of money by 1MDB.
"Even if the debts are fully paid up through the sale of assets bought by 1MDB, that does not mean that 1MDB is free from the charge that it cannot account for the billions it had lost.
"In business, money can be lost through bad investments or bad management. That is acceptable though the CEO and Managers would be sacked.
"But when money is lost and the management cannot explain where it went and how it disappeared then management would still be responsible even if there is a bailout or the debts paid.
"Thus with money claimed to have been invested in Cayman Islands and despite claims that it had been brought back and is now in Singapore, the money cannot be demonstrated to be there in tangible form, then management will be held responsible for its loss. The assumption must be that management had misappropriated the money unless otherwise proven."
On GST
"As for the GST, the additional fund raised through it is at the expense of the people. They have to pay more for everything they buy, which means their purchasing power is reduced. In other words they have become poorer, in order to enrich the Government.
"Even if what they buy is not subject to GST, but the wholesalers who supply the retailers have to increase their price because they have to pay GST. The retailers in turn have to recover the higher cost by charging their customers more. In the end the people have to bear the GST cost.
"The Government can avoid this additional tax on the people by reducing its own cost. Giving out money to all and sundry may be popular but in most cases the recipients do not really need the money. It is far better to educate and train people for higher-paying jobs when incomes would increase substantially in return for work done. Raising wages without increases in productivity, increasing the number of holidays, substituting those falling on weekends, fixing high minimum wages, wasting money on luxuries – all these increase Government expenditure, resulting in increased deficits. With better financial management the GST need not be imposed on the people.
"Of course adventures such as the 1MDB and Pembinaan PFI only result in unsustainable borrowings. And when these adventures lose money, the financial burden of the Government is increased. By introducing the GST, Government is actually asking the people, including those who are not in the income tax bracket to bail out the Government."
On leadership
"An elected leader is not impervious to removal before his term is out. The previous PM was also elected, in fact with a bigger majority. But he was persuaded to step down by the current PM.
"So what is wrong with asking the current PM to step down. He has obviously made a bigger mess of the country than the previous PM.
"Before this, there was no talk of PM’s lavish spending, of purchases of expensive things, of a life of luxury. Some of these talks may not be true. But such talks were not heard during the tenure of the previous Prime Ministers. That there are such talks must be the result of a way of life that is different from what is expected of Prime Ministers.
"For these and many other reasons, Najib should step down.
"As to the big crowd in support, we all saw such demonstrations before the 13th General Election. The result was worst than the 12th GE. Those demonstrations do not translate into support for Najib. They come because of various incentives."
Astro Awani
Fri May 29 2015
DR MAHATHIR: The rakyat have become poorer in order to enrich the Government.
Tourism Johor akan dikorporatkan tahun ini - Onn Hafiz
Kerajaan negeri akan mengkorporatkan Tourism Johor pada tahun ini dalam usaha untuk memperkasakan agensi berkenaan, kata Menteri Besar Johor Datuk Onn Hafiz Ghazi.
Skuad Piala Uber Malaysia pulang awal
Kemenangan tersebut menyaksikan Thailand melangkah ke suku akhir selepas mengalahkan Australia dengan keputusan sama.
Mesyuarat Khas WEF: Seruan adaptasi teknologi untuk PKS harus guna bahasa mudah
Syarikat besar mempunyai kelebihan kepakaran dan sumber yang boleh digunakan untuk membantu PKS turut sama menyertai adaptasi teknologi.
Anwar bertemu PM Pakistan dan Menteri Luar Turkiye
Kedua-dua pemimpin menyatakan komitmen untuk terus memperkukuh hubungan Putrajaya-Islamabad dan melonjakkan lagi perdagangan dua hala.
Patuhi standard pelancongan ASEAN, tarik lebih ramai pelancong - Tiong
Tiong berkata ada kecenderungan pelancong asing tidak menggunakan perkhidmatan ejen pelancongan berdaftar disebabkan kualiti yang lemah.
Nur Shazrin mungkin 'lupakan' Paris 2024
Beliau mungkin tidak akan bersama kontinjen negara sekiranya tiada 'lampu hijau' berikutan tiga jarinya tidak dapat digunakan dengan baik.
Asia Pasifik kini dalam era 'gemilang' transformasi digital - Huawei
Sabrina Meng berkata, rantau Asia Pasifik turut menjadi ikutan pihak lain yang giat berusaha meningkatkan ekonomi digital mereka.
KPWKM ambil tindakan kepada lebih 500 taska tidak berdaftar
Antara tindakan diambil ialah sita, denda dan kompaun, serta pemberian notis peringatan kepada operator taska.
Segmen penerbangan Capital A catat 90 peratus faktor muatan, 15.4 juta penumpang pada suku pertama 2024
Prestasi kukuh itu adalah selari dengan fokus strategik AirAsia untuk mengembangkan kapasiti dan membina semula rangkaiannya.
Pegawai, anggota bomba di lima negeri ada masalah kesihatan
Ujian Kemahiran Taktikal Kebombaan diduduki seramai 12,608 anggota dan pegawai dan hanya 9,313 sahaja yang lulus.
SPRM mohon maklumat dari Jerman berhubung dana 1MDB disyaki beli kereta mewah
Ia berhubung laporan kereta mewah dirampas oleh pihak berkuasa Jerman di Munich yang dipercayai berkait dengan kes 1MDB.
Kes 1MDB: Najib percaya Blackstone dikawal Arab Saudi, Raja Abdullah - Saksi
Saksi memberitahu Najib percaya bahawa syarikat Blackstone Asia Real Estate Partners dikawal oleh kerajaan Arab Saudi dan Raja Arab Saudi.
1MDB: Prosiding Najib julung kali dibuat pada Sabtu
Perbicaraan pertama dibuat pada hujung minggu ini berlangsung tepat jam 8.30 pagi, selepas bekas Perdana Menteri itu dibawa pihak berkuasa dengan menaiki kenderaan dari Jabatan Penjara.
'Kementerian Kewangan tiada rekod surat kelulusan Najib bagi 1MDB ambil alih Tanjong Energy, Genting Sanyen' - Saksi
Dalam siasatan SPRM, Kementerian Kewangan mengesahkan tidak mempunyai rekod ke atas kedua-dua surat tersebut.
Najib diberi peluang jelaskan mengenai dokumen 1MDB ketika disoal siasat - Pegawai SPRM
Mahkamah Tinggi diberitahu bahawa Najib diberi peluang untuk menjelaskan secara terperinci mengenai dokumen berkaitan 1MDB, ketika disoal siasat.
Najib tak pernah arah pengurusan 1MDB pindah AS$1.03 bilion kepada syarikat Jho Low - Saksi
Mahkamah Tinggi diberitahu bahawa Datuk Seri Najib Tun Razak tidak pernah mengarahkan mana-mana individu daripada pengurusan 1MDB untuk memindahkan AS$1.03 bilion kepada syarikat Jho low.
Tidak penting untuk tanya jika Najib arah AS$700 juta dipindah kepada syarikat Jho Low - Saksi
Saksi itu berkata demikian ketika disoal oleh peguam Wan Azwan Aiman Wan Fakhruddin berhubung transaksi yang dilakukan pada September 2009.
1MDB: Mahkamah akan tentukan sama ada pendakwaan berjaya buktikan kes - Hakim
Muhammad Shafee berhujah bahawa pertuduhan terhadap anak guamnya adalah salah serta bertindih.
1MDB: SPRM ke Riyadh untuk sahkan surat derma RM2.6 bilion - Saksi
Penguasa Kanan SPRM Nur Aida Arifin berkata pihaknya telah pergi ke Istana Riyadh pada 2015 bagi mengadakan pertemuan dengan dua putera Arab Saudi.
1MDB: Najib tak dedah mengenai pertemuan dengan Raja Arab Saudi ketika siasatan - Saksi
Najib tidak memaklumkan kepada SPRM mengenai pertemuan delegasi Malaysia bersama Raja Arab Saudi, Almarhum Raja Abdullah Abdul Aziz Al-Saud.