Penang Chief Minister Lim Guan Eng should cancel the water restructuring deal with Putrajaya if he continues to claim credit for the state's debt reduction, said minister Abdul Rahman Dahlan. 

In a statement, the BN strategic communications director said that 95 percent of Penang's debt reduction was made possible by the federal government. 

This was done in a 2011 water restructuring agreement when Putrajaya agreed to convert RM655.24 million of existing state debts to 45 annual lease payments of RM14.56 million, he said. 

"In the same agreement, Putrajaya had also agreed to give an RM1.2 billion grant to the state government to expand the Mengkuang dam - contrary to DAP's claim that it does not help Penang.

"A big proportion of these funds have already been disbursed," said Rahman, who is a minister in the Prime Minister's Department.

Yesterday, the 2016 Auditor-General's report stated that two opposition states - Penang and Selangor - have the least arrears owed to the federal government.

It was reported that Selangor had RM14.67 million in arrears, while Penang had none.

This is a stark contrast from Pahang and Kedah which had the highest arrears of RM1.087 billion and RM1.028 billion, respectively.

Pahang is the home state of Prime Minister Najib Abdul Razak, while his mentor turned nemesis, Pakatan Harapan's chairperson Dr Mahathir Mohamad hails from Kedah.

Penang Harapan leaders have continued to claim credit that it is their good governance which has reduced the state's debts.

'Penang misleading people'

Meanwhile, Rahman accused Penang of using the federal assistance to "mislead" the people.

He said Penang continually misuse the good intention and assistance of the federal government to "claim credit and mislead the public."

He added that Putrajaya will keep to its word to assist all the states and will not move to jeopardise the water restructuring deals with the states.

"However, if the DAP Penang government still wants to claim credit for the debt reduction or accuse the federal government of not assisting Penang, they should ask Putrajaya to cancel their 2011 water restructuring agreement so that they can be honest to themselves and to the people," Rahman said.

He said the Penang government can then take back the RM655mil state debt and repay the federal government the RM1.2 billion grant.

Rahman said if Penang does this, its debts will no longer be reduced by 95 percent, nor would it be lowest in the country.

"Instead, it will be triple but at least DAP and the Penang government can be honest with themselves," quipped the Kota Belud MP.

"Alternatively, DAP should stop making such claims of state debt reduction anymore and apologise to the people for repeatedly deceiving them over the past few years."

Meanwhile, Gerakan secretary-general Liang Teck Meng urged Lim to be brave and release all the letters between the National Water Commission (Span) and Penang Water Supply Corporation (PBAPP).

Liang said the letters, which Lim should release, are dated December 23, 2016,  February 21, April 25, and June 22.

"Let the people judge, do not make me ask him for the fifth time," Liang said in a statement.

The Span chairperson said these letters will allow the people to judge for themselves who is the actual party asking for the water rates increase.

"This includes the big and broad increases requested in December last year, which was suddenly pulled back in late February, probably to make a reappearance after the 14th national polls," he added.

He was responding to Lim's statement yesterday that SPAM had opposed PBAPP's withdrawal of water tariff increase twice.

Lim had said that Liang was "hiding information, or selectively choosing" information and taking them out of context, to paint a false and negative picture of the Penang government.

The issue arose when on April 28, PBAPP asked for an increase in Water Conservation Surcharge (WCS) instead of an increase in water tariffs so that only those who used water excessively would be punished.