PBS: RM500 mln bond issue explained earlier

KOTA KINABALU, June 10 (The Borneo Post) -- PBS information chief Datuk Johnny Mositun said the state government had fully explained the purpose behind the RM500 million bond issue in the State Legislative Assembly last year. “The money raised was specifically for the Sabah Development Bank (SDB). The state government wanted to put the SDB on a stronger footing to capitalize on the market demand for development loans. In plain words, the money has been invested in SDB, wholly owned by the government.

The whole idea is to turn SDB into a very profitable entity which in turn will bring in revenue to the state government,” Mositun said in response to SAPP Youth chief, Edward Dagu, who challenged him to explain the specific purpose of the bond issue.

Mositun said it was deemed more practical to raise funds for SDB through a bond issue because the exercise was a commercial one, and it did not want to use funds from the state reserves for the purpose.

“And I am surprised that this has to be an issue. Even the federal government has issued treasury bonds from time to time for specific purposes, not necessarily because it is out of funds,” he said.

Mositun said with the state reserves untouched and growing, and SDB becoming a strong and viable lending institution, the state government stood to benefit a lot.

“That is the explanation, and it was never a secret from the beginning. SAPP may feel differently, but that is their prerogative,” he added.

Mositun said if at all SAPP president Datuk Yong Teck Lee had evidence of any misuse of the RM500 million raised through the bond issue, he could should state his case openly.

“After all, Edward Dagul once lodged a police report against me. Yong can do the same against the state government,” he said.

On the issue of the Exchange of Letters between Malaysia and Brunei, Mositun said he had neither stated nor implied that Blocks L and M were within the 12 nautical miles territorial waters of Brunei.

As a party information chief, he said it was his responsibility to speak up for the people and for the Barisan Nasional (BN) and not for a particular party as suggested by Dagul.

“The BN leadership in Sabah has full confidence in Chief Minister Datuk Seri Musa Aman who is also the Finance Minister in handling the State financial affairs,” he said.