KUALA LUMPUR: The RM19.4 billion in Goods and Services Tax (GST) refund money is not missing, said the Public Accounts Committee (PAC).
PAC chairman Datuk Noraini Ahmad said based on its findings, the money was used to pay for the government's management and development expenditure.
She explained that the previous Barisan Nasional (BN) government had channelled the money collected from GST into a consolidated revenue account.
The monies were later transferred in stages to the GST refund consolidated fund (Kumpulan Wang Pembayaran Balik GST) as was decided by the GST Refund Committee, she said.
"This is inconsistent with Section 54(2) and 54(5) of the GST Act 2014.
"The previous government had overestimated the GST net collection, or 65 per cent of the gross collection amount.
"The government had announced that it would disburse GST refund in 2019 by using a portion of the Petronas special dividend amounting to RM30 billion," said the Parit Sulong Member of Parliament.
Noraini said based on the findings, PAC had prepared several recommendations for the government.
"The government's administration must ensure full compliance of the country's fund, especially in carrying out procedures to ensure a more orderly and accountability of financial administration.
"Government officials who had been entrusted (in financial administration) must consistently advise the government on legal, procedures and information without fear or favour, particularly in practising cash-flow planning and accountable fiscal discipline," she said.
In August last year, Finance Minister Lim Guan Eng revealed that the previous BN government had failed to pay RM19.4 billion in GST refunds since its implementation in April 2015 to May 31 2018, and there was only RM1.49 billion left in the repayment fund.
PAC began its investigation proceeding on the matter on August 15, 2018, and took 11 months to complete the report. A total of 10 witnesses were called to testify in the select committee’s proceedings.
The PAC report is available on www.parlimen.gov.my/pac