Rafizi says Sabah’s request for the setting up of a trust fund to place unused federal development funds merits a detailed study.
KOTA KINABALU: Sabah’s request for the setting up of a trust fund to place unused federal development funds merits a detailed study, says Rafizi Ramli.
The request, which Sarawak had also voiced, he said, needed a thorough study by the Finance Ministry as it did not involve merely financial aspects but also the effects the move could bring to the federal projects system.
“Whether or not you want to put the money into a trust fund, that is just one bit of it, which is financing, but we are looking into it in its totality,” the Economy Minister said to reporters after the 12th Malaysia Plan (12MP) midterm review engagement session here on Tuesday (June 27).
He explained that these involved the application phase for the projects, how these applications were assessed and the process flow when projects were approved.
“We are looking at the whole mapping. We must coordinate with the Finance Ministry as many of the rules are treasury rules fixed by them, including whether the money can be put into a trust fund.
“So how exactly it (money) goes out, how it can be kept, those are matters that need refining by studying the existing laws.
“But definitely these issues voiced by the Sabah and Sarawak governments will be flagged up to be discussed with the Prime Minister later,” he added.
The Sabah government has consistently suggested for a trust fund to put in the money for identified federal projects under the annual national budget.
This is because many of the projects could not be completed due to administrative and implementation delays within the year.
Some projects could not even begin for a number of reasons including contractor issues, utility problems as well as land and management matters.
The state will be required to re-apply for such annual allocations if the approved funds are not utilised for the year.
Chief Minister Datuk Seri Hajiji Noor had told the state assembly in May that RM5.709bil in federal allocations were given to Sabah last year but only RM4.457bil was used up and the remaining RM1.252bil returned.
And earlier this month, Hajiji said Sabah had been allocated RM6.05bil in the national budget this year, the third highest after the Federal Territories and Selangor.
However, under the Third Rolling Plan of the 12MP, only 21.61% of the 1,181 projects for Sabah have been implemented.
