Putrajaya ready to channel RM1 billion to repair Sarawak schools

Updated 6 years ago · Published on 22 Jul 2019 4:55PM · 5 Comments

Finance Minister Lim Guan Eng says Putrajaya releasing funding for Sarawak school repairs is part of the debt repayment agreement Chief Minister Abang Johari Openg signed last week. – The Malaysian Insight pic by Afif Abd Halim, July 22, 2019.

THE Finance Ministry wants Sarawak to repay RM350 million it owes Putrajaya before executing the first phase of repairs to dilapidated schools in the state.

Finance Minister Lim Guan Eng said this was the agreement reached with the state government, which owed Putrajaya RM2.37 billion in loans.

Of this, it was agreed that RM1 billion would be channelled back to Sarawak for the repair of schools.

“The federal government will expedite the first phase of RM350 million for the repair of dilapidated schools in Sarawak once the state government repays its debt portion of RM350 million,” Lim said in a statement today.

Lim urged the Sarawak government to expedite the payment so that the first phase of school repairs could be completed by year-end.

He also reminded Kuching that it had agreed to other conditions, such as awarding contracts for the repairs by open tender, to ensure transparency and value for money.

Lim said Sarawak Chief Minister Abang Johari Openg had stated his agreement to the conditions in a letter that Lim received on July 15.

Two weeks ago, Lim said Putrajaya has yet to hear from Sarawak on the proposed conditions for the RM1 billion loan repayment.

“The Sarawak government’s suggestion to use its debt repayment to repair schools is actually an advance from the federal government, because it involves funds borrowed by the Sarawak government previously,” he said today.

“It means the RM1 billion is actually federal government funds with the agreement that it is to be used to repair schools.” – July 22, 2019.

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Comments

  • I dont understand this. They repay the amount of 350 million which you then send back to them to repair the schools.

    Why lose on bank charges? Not very efficient I must say.

    Posted 6 years ago by Alex Lim · Reply

    • Maybe Gomen got special rate

      Posted 6 years ago by Victor Low · Reply

    • It is to ensure that Sarawak Govt will not misuse their own fund.

      Posted 6 years ago by Chean Ang Heng · Reply

    • There are no bank charges for G2G transactions. But still reeks bureaucracy.

      Posted 6 years ago by Luke Skywalker · Reply

  • A very strange statement which will lose PH votes in Sarawak, starting with the upcoming state elections. What about the oil revenue which Putrajaya has taken away from over the last few decades?

    Posted 6 years ago by Anak Kampung · Reply