Anwar: Why not cut subsidies of crony companies?

Opposition leader Datuk Seri Anwar Ibrahim today slammed the government for further raising the price of essentials like petrol and sugar, but at the same time refusing to reduce subsidies for companies to cronies.

pkr congress 271110 anwarHe said companies or IPP independent power generators such as gas continues to enjoy high subsidies while the people are forced to bear the RON95 petrol price increase for the second time in six months.

"Although the government previously promised to cut the subsidies given to companies owned by cronies of the IPI, it can not be done.

"Surprisingly, each cut subsidies by the government so far represents only the basic essentials that increase the financial burden of the people," said Anwar.

In addition to petrol, has raised prices today are sugar (20 cents) diesel and liquefied petroleum gas, five cents each.

Anwar said the Umno-BN the practice of protecting large corporations that are licensed IPP is harming people.

According to Anwar, who is also chairman of PKR, the trend of oil prices shows clearly that the government intends to reduce the subsidy every six months, boosting the price of petrol to RM2.10 per liter to RM1.90 within a year from now.

taman wahyu tnb electrical power cables tower 051206 02He expressed regret that the government cut subisidi to people and not the facilities provided to the IPP and other sectors.

"The prime minister and government leaders should explain why it is very hard to withdraw subsidies on petrol, sugar and LPG which would put pressure on low-income people, but the corporations who get rich are exempted from such action," said Anwar.

Prior to this, the Prime Minister Najib Razak said the agency established itself DRIVERS government expects to save RM1.12 billion this year if the subsidy to offset IPI and other sectors.

At present, the Government, through Petronas extend subsidy of RM19 billion to the IPPs and the company each year.

According to Anwar, what is regrettable is that the Umno-BN government is so eager to save RM126 million on the recent subsidy cuts, but people are willing to pay RM131 million ringgit to foreign consultants.

azlanPayment was made to establish a lucrative DRIVERS agencies and the annual operating costs of agencies.

"What is the government authority to collect RM126 million from the poor to pay for foreign consultants RM66 million to set up a government unit and another RM65 million as operating costs," he said.

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