This article first appeared in The Edge Financial Daily on August 16, 2018

KUALA LUMPUR: Finance Minister Lim Guan Eng revealed the RM19.25 billion allegedly missing from the goods and services tax (GST) refunds trust account has affected 121,429 companies and individuals not paid back in two weeks as required by the law, going as far back as 2015.

In a statement yesterday, Guan Eng said the government faces a shortfall of RM19.25 billion because there was only RM148.6 million in the GST refunds trust account as at May 31, 2018.

“This was confirmed by Customs Department director-general Datuk Seri T Subromaniam that customs had requested from the monthly trust fund committee meetings, that RM82.9 billion be transferred to the GST refunds trust account, but only RM63.5 billion was effected.

“This shortfall of RM19.25 billion resulted in 121,429 companies and individuals not getting their GST refunds since 2015. The trust fund committee monthly meetings were chaired by former treasury secretary-general Tan Sri Mohd Irwan Serigar since 2015,” he said.

Guan Eng noted while the decisions were made by Mohd Irwan, former prime minister Datuk Seri Najib Razak played a critical role as the then finance minister.

“This raises three important questions for Najib. One, did Najib authorise that GST refunds be not made in two weeks as required by the law?

“Two, did Najib approve Mohd Irwan’s decision not to transfer the full RM82.9 billion as requested by Customs, but only RM63.5 billion with these refunds stretching back to 2015, or a shortfall of RM19.25 billion to the GST refunds trust account?”

Thirdly, Guan Eng questioned whether Najib had approved the GST refunds, not paid back since 2015, were instead recognised as government revenue to be used at the government’s whims.

“It is therefore imperative that Najib accounts for his role in the 121,429 companies and individuals not getting back their RM19.4 billion [the actual sum to be refunded], or the RM19.25 billion missing from the GST refunds trust account, by answering and not dodging these three questions.”

Despite the huge refunds involved, Guan Eng reiterated the new government is committed to returning the refunds improperly or even “illegally” withheld by the previous government, beginning next year.