Media statement by Dr. Hiew King Cheu in Kota Kinabalu on Sunday, 17^th July 2011:

Sabah State reserved fund is only RM3 billion?

The Sabah Chief Minister Datuk Musa Aman announced that the state reserved fund is RM3 billion in the state coffer. He made the announcement in the meeting of the Chief meeting Department and the State Treasury Department recently.

He said he is a "politician and also a businessman", and he needs the corporation of everyone including the BN component parties, public service sectors, and the ex-leaders to assist him to run the state. He cannot do it on his own.

I was surprised by the figure of RM3 billion as announced by the Chief Minister on the State reserved fund. The amount of money seems far too small for a state with so many natural resources and income from various sources. It is really strength to learn that the amount is that little after 16 years of BN gaining power from PBS back in 1994 until now.

This reflects that the state administration did not perform well, and in fact the state reserved fund should be much higher if the financial administration is provided with proper care. During the time of the PBS state opposition government, they were having deep trouble and difficulties in running the Sabah government without the financial help from KL, and during that time the state reserved fund was very low and nearly rock bottom.

The present financial situation reflects that the Sabah BN state government did not do well in fulfilling their task to bring about the much needed economic growth and prosperity to Sabah. That is why we have fallen from the richest state to the poorest state in Malaysia according to the World Bank Report published recently. We are going to fall further behind if the situation persisted like now.

It will be interesting to know the actual amount on the debts owed by the state government to oversea financial institution as well as the Federal government. This will be useful for us to learn more about the real and actual financial standing of the state. May be the Chief Minister Cum Finance Minister Datuk Musa Aman can enlighten all the Sabahan who wanted to know the facts on our monitory ground.

The state is having so much revenue from the oil and gas, timber, palm oil, and many other incomes and the total amount of revenue is very big. Besides, the Federal government had taken up directly many necessary developments in Sabah, like the upgrading and maintenance of the state basic infrastructures, hosipitals, rural development, electricity, water supply, education, security and defense, housing, and even in agriculture etc.. There are also many other big subsidies and allocation on sugar, rice, fisheries and fuel etc.. Where is the revenue received by the state government had gone to and being spent on? We deserve an answer and details on how the Sabah government spent our money and why there is so little money left as reserved fund?

The common layman can tell you that the small amount of RM3 billion reserved fund is actually reflecting the poor economy strength of the state. We are not doing well in terms of economy growth. The present state government had failed the Sabahan in many ways by not producing good result in achieving positive growth in the state economy.

The Penang government when they first took over the state government three years ago, the state reserved fund then was only a mere sum of RM0.6 Billion, and now the Pakatan Rakyat state government managed to turn and achieved a sum of RM1.2 billion in the state coffer. It is double of the amount before. This is really some good financial management and achievement, and the great part is that they have no outside debts.

I have been informed that many contractors who took up state jobs had not received their progress payments for many months now. What actually happened and why they are not paid accordingly, is it true that the state coffer is running dry? This is a serious matter that borders the Sabahan, we want some answers.

* Dr Hiew King Cheu, MP for Kota Kinabalu