By Olivia Miwil
KOTA KINABALU: The Sabah government has provided substantial allocations that benefit the people through the passed Supplementary Supply Bill, state Assistant Finance Minister Datuk Ishak Ayub said.
"The allegation that the government is prioritising Government-Linked Companies (GLCs) over essential public services is unfounded.
"The Supplementary Supply Bill provides substantial allocations for water treatment plants, pump houses, roads, bridges, rural water supply, housing, education and welfare," he said in a statement.
Parti Warisan had earlier criticised the state's financial decisions related to GLCs and the bailout allegation involving state-owned Sabah Development Bank Berhad (SDBank).
Opposition leader Datuk Seri Mohd Shafie Apdal had claimed that the conversion of RM200 million in existing state government fixed deposits with SDBank into Redeemable Preference Shares (RPS) constituted a bailout.
Ishak said converting the deposits into RPS would strengthen SDBank's capital base while providing the state with an annual dividend of 3.15 per cent, equivalent to approximately RM6.3 million.
"Allowing the bank to fail would expose the state to approximately RM3 billion in outstanding bonds and other liabilities.
"The choice is therefore straightforward: strengthen the bank using funds already within SDBank, or risk a significantly larger financial burden in the future.
"This is not a bailout. It is prudent and responsible financial risk management," he said.
He added that SDBank, Sabah International Petroleum (SIP) and SMJ Energy are wholly owned by the Sabah government.
Since the second half of 2023, Ishak said SDBank's new board and management had been addressing longstanding governance weaknesses, recognising legacy impairments and implementing a comprehensive transformation programme.
Comments
Post a Comment