SARAWAK is still working out with Putrajaya on how the RM1 billion loan the state is offering to the federal government for the repair of dilapidated schools in the state will be used, Assistant Minister for Education, Science and Technological Research Annuar Rapaee said today.

“There is no deadlock. Negotiation is still ongoing,” he told the state assembly today.

Sarawak last July offered Putrajaya the money as a loan and a contra payment proposal – with the federal government offsetting the money against the state’s outstanding federal loan.

Putrajaya rejected the proposal last month on ground that the arrangement went against federal financial procedures.

It instead made a counter proposal by asking the state to make an “advance payment” by depositing the RM1 billion into the federal consolidated fund account.

Sarawak rejected the proposal saying there is no guarantee the federal government will use the money to fix the schools in the state if it does that.

“Where’s the assurance?” Annuar later asked in a media conference.

“Do you think they (the money) will come back (to the state)?”

Earlier, in the assembly during question time, Annuar said it does not make sense “for someone to make a loan (payment) in advance just because your business is not good”, alluding to the federal government’s claims of financial constraint and debt burden.

The Nangka assemblyman gave the analogy of someone taking a loan to buy a car but just because the company is facing financial problems, the purchaser is asked to pay in advance all the loan.

“Does that make sense?” he asked.

“There’s no such thing as advance payment. We know all the government financial procedures.” – May 3, 2019.