YB. R.S.N RAYER - A.D.U.N. SERI DELIMA, PENANG

Farizan said from now, the council would only go for “value for money” contracts.
He said the council would be prudent in its spending to reduce its budget deficit and increase its reserves which stood at RM18mil at the end of 2007.
He added that a big chunk of the council’s operating cost was spent on waste collection and staff salaries and emoluments.
“We cannot reduce salaries and expenses for contracts which had been signed such as those for waste disposal and development projects.
“We now have to fork out RM48mil yearly to pay our staff while another RM50mil is spent on waste management annually,” Farizan said.

The council has also set up a committee to recover assessment arrears which stood at RM36mil.
Over the last two weeks, the council has come under scrutiny by the new Penang government which was concerned that its reserves had plunged from RM229mil in 2000 to RM25.6mil last year.
It had an accumulated deficit of RM226mil over eight years.

On Sunday, Chief Minister Lim Guan Eng announced that the findings of an independent auditor into the financial status of the council would be made public as the people had the right to know.