FORMER prime minister Dr Mahathir Mohamad has been blamed for the demise of banks that were incorporated in Sarawak.

In a simple ceremony to mark the start of commercial operations in state-owned Development Bank of Sarawak (DBOS), Chief Minister Abang Johari Openg said the former leader’s so-called consolidation of banks in 2001 was not only a death knell for small and sometimes family-owned banks, but it also put control of all banking and financial services in the hands of institutions incorporated in the peninsular.

That, the chief minister, made doing business for the government difficult.

“When we want to borrow money, they (the banks) will ask us a lot of questions. But our money is there with them.

“It’s so hard to even use our own money,” he said, giving one reason for the formation of DBOS, which was incorporated in May last year with paid-up capital of RM500 million.

Abang Johari was referring to banks like Hock Hua or Bian Chiang Bank, which were once household names.

CIMB can trace its roots to Bian Chang Bank.The bank was taken over by Umno in 1975 and renamed Bank of Commerce.

Dr Mahathir, who is the opposition coalition Pakatan Harapan’s prime minister designate, is being blamed by the ruling Barisan Nasional leaders for all that is wrong in the country today due to events that began or occurred during his tenure as prime minister from 1981 to 2003.

DBOS, Abang Johari said, is the financial conduit of the government to finance its various projects, notably to improve the internet infrastructure to supports the state’s digital economy, the proposed light rail transport (LRT) system in Kuching, oil and gas ventures, healthcare, and modernisation of agriculture.

Abang Johari has told the DBOS management and board that “there will no government interference” in how they conduct their business even though the bank is state-owned and reports to the government.

“DBOS will be run professionally.”

He said that was why there were no politicians appointed to the board in the first place.

After today, the bank, which currently has a staff strength of 16 and operates out of Menara SEDC Isthmus at the Kuching Isthmus, can start taking deposits from the state government.

In a statement, DBOS said the bank is “already looking at a few projects”. It did not reveal  the nature of the projects, saying it was bound by its confidentiality policy and a non-disclosure agreement with its clients. – January 15, 2018.