Ongkili: BN government selling assets to finance budget
Wednesday, 20 November 1996

KOTA KINABALU : Langkon assemblyman Dr Maximus Ongkili today claimed that the Barisan Nasional government was selling precious state assets to finance recurrent and development expenditure because traditional revenue sources had declined.

Speaking during the debate on the 1997 budget in the State Assembly, Dr Ongkili said the state government appeared desperate to the extent that even revenues that had not been realised would be used to finance supply and development expenditure next year.

He cited the divestment of the Sabah Land Development Board (SLDB) through public listing on the Kuala Lumpur Stock Exchange (KLSE) and the disposal of state’s shares in Sitt Tatt’s Bhd.

"Why is the urgency to sell these shares? And even if it was prudent to sell them, why can’t the revenue be kept in the consolidated fund rather than directly using them for the current budget? This only shows that the state government is desperate for revenue", he argued.

The PBS deputy president repeated the allegation by the party that both the proposed public listing of SLDB and sale of Sitt Tatt’s shares have not been approved by the Securities Commission in Kuala Lumpur, and yet the expected revenues from both exercises were already included in the 1997 budget.

"This move is a breach of established financial regulations set by the Securities Commission because such transactions would lead to speculations on the value of both shares in the stock market", he alleged.

Dr Ongkili also questioned the government whether it would be able to raise the RM610 million in projected revenue from forests given the present low world prices for logs and sawn timber.

He claimed that if the world prices for logs remained low and the SLDB divestment did not proceed, the government would be short of about RM800 million in revenue next year thereby causing great concern to the government’s financial position.

Dr Ongkili also criticised the budget for poor financial planning and management of public funds.

"There are several votes where the entire 7th Malaysia Plan expenditure ceiling had been almost exhausted although 1997 would only be the second year of the plan period. For the vote on special development projects (D11 0400 0009) under the Chief Minister’s Department, the entire RM70 million ceiling would be exhausted next year.

"There is nothing left for the next chief minister. Clearly reflects absence of financial prudence and planning", he said.

Dr Ongkili was yet to complete his speech when a blackout occurred in the assembly.