Review unpaid loans, say groups
Civil society groups and economists are calling for a comprehensive review of long-standing unpaid public loans. They advocate for stronger recovery measures and institutional reforms to improve the management of public funds.
Why it matters
Effective management of public debt is essential for fiscal responsibility and the ability of a government to fund priority public services.
PETALING JAYA: The billions in loans that have yet to be collected over decades must be subjected to a comprehensive review, say civil society groups.
Stronger recovery measures must also be taken against persistent defaulters flagged in the Auditor-General’s Report, they say.
Each significant account should have a clear recovery strategy covering previous restructuring, available securities or guarantees, recovery action taken and realistic prospects of repayment, said Transparency International Malaysia (TI-M) president Dr Raymon Ram.
“When substantial public debt remains unresolved for such long periods, including some with multiple loan restructuring, legitimate questions arise about the effectiveness of monitoring, restructuring and enforcement.
“Persistent defaults should trigger stronger recovery measures, while substantial write-offs must be supported by a clear audit trail showing that reasonable recovery avenues were exhausted.”
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