KUALA LUMPUR: Pengurusan Aset Air Bhd (PAAB) is expected to face a cash flow deficit of between RM13.25mil and RM235.21mil over 12 years from 2025 to 2037, said the Auditor-General’s Report (LKAN) 2019 Series 2.

       According to the report released yesterday, a deficit will occur if the problem of mismatch of the 25-year loan repayment period to the federal government and the 45-year lease collection period of the state water operator is not reconciled between the Ministry of Finance (MoF) and PAAB.

       “This is due to the shorter loan repayment period compared to the lease collection period which in turn creates the risk of PAAB’s ability to settle the loans owed to the federal government,” it said. — Bernama