KOTA KINABALU: Datuk Seri Shafie Apdal's claim that the Parti Warisan-led administration in 2019 paid off RM1bil of Sabah's debts is misleading, says Datuk Seri Masidi Manjun.
The Sabah Finance Minister said the debt in question, the State Government of Sabah Bonds (2014/2019), was issued in December 2014 during the Barisan Nasional administration.
As part of the bond's terms, Bank Negara required the state government to establish a dedicated sinking fund (Kumpulan Wang Amanah Bagi Bayaran Balik Bon) to ensure full repayment upon maturity.
"This was a safeguard to prevent the repayment from becoming a heavy financial burden on the state's finances," he said in a statement on Sunday (Aug 10).
Under the arrangement, RM200mil was deposited into the sinking fund annually over five years until 2019.
By the time Warisan took office in 2018, most of the repayment funds had already been secured.
"In 2019, the sinking fund was RM1bil, enabling the state government to make a one-off bullet payment to settle the bond in full," he said.
Masidi said it was inaccurate to suggest the repayment was the result of any special action by the then-Warisan-led government, adding that it was due to prudent financial planning put in place by the previous administration.
