THE discussion in the Sabah assembly this week over the failure to use all the funds Putrajaya had allocated to develop Sabah has shed some light on the endless loop of unfinished development in the state.
It is found that approximately RM10.82 billion had gone unused over the period from 2014 to 2021.
In addition to this, figures from the federal budget estimates and the federal government financial statements revealed that only 40% to 50% of the funds meant to deal with poverty eradication, basic infrastructure and education were used.
Putrajaya had consistently announced between RM4 billion and RM6 billion annually as development allocations for Sabah in the last five to six years.
Now, Sabah lawmakers see this as a great loss for the state, especially when it is grappling with serious poverty and infrastructural problems.
Sabah faces a multitude of problems, such as pothole-riddled roads, an acute water shortage, constant power failures, as well as having the highest poverty and unemployment rates in Malaysia.
Eight of 10 Sabah districts are listed as the poorest districts in Malaysia and account for 29% of the total 588,700 unemployed persons nationwide.
Former Sabah chief minister Datuk Seri Mohd Shafie Apdal has urged the state government to be mindful of the allocations announced by Putrajaya.
He indicated that while the announced figures appear substantial on paper, only a fraction of the amount had been used. The remainder was to be reclaimed and returned to Putrajaya at the end of each fiscal year.
It is also worth noting that these same funds might be recycled in the subsequent year’s federal budget, a practice commonly referred to as a “top-up.”
Shafie cited the Pan Borneo Highway project as an instance where annual allocations were approved but the project remains substantially incomplete.
“The Pan Borneo Highway has spanned over five prime ministers and billions of ringgit have been announced by each of the prime ministers, but the project remains unfinished,” he said.
The Sabah portion of the highway is 85% complete and still a work in progress as opposed to 97% completed for the Sarawak portion of the inter-region project.
Many believe all the funds from Putrajaya could not be used up because of bureaucracy involved in implementing projects the funds were meant for.
The slow pace of work involved land acquisitions or compensation, dealing with utility issues and other required groundwork that by the time all the red tape were overcome, and the project was finally ready for commencement, Putrajaya would be close to announcing a new budget.
Tardy paperwork
Sabah Umno chief Datuk Seri Bung Moktar Radin said it takes several years for the funds to be utilised due to the delays on the commencements of projects.
“It is impossible to use up all of the funds as the state government machinery is not as efficient as those in the peninsula,” he explained.
“In the peninsula, firms could start their projects almost instantly as all the procedures and red tapes are settled much earlier. Land compensation, settled. Utilities matter, resolved. All the groundwork issues have been resolved.
“In Sabah, companies have to wait for a year to have the land compensation settled, one more year for the utilities and another for other groundwork matters to be resolved.
“In total, three years (for the contractors to commence work). This is why all the allocations (for Sabah) have been withdrawn,” said Bung Moktar, who for a brief period of time previously served as Sabah’s works minister.
Sabah Finance Minister Datuk Seri Masidi Manjun, however, clarified that it takes between six to 12 months for all the paperwork to be completed, adding that it is a “technical issue” contributing to federal funding not being fully utilised.
“When a substantial allocation is granted to Sabah, of course, a chunk of the monies cannot be fully used up. This creates a technical problem, as it is assumed Sabah received a huge allocation.
“The actual requirement is lower as the projects (involved) are mostly in the preliminary stages. This contributes to the perception that our performance in using these funds is seemingly low,” he said.
Aggressive implementation needed
Masidi said the efforts of the state civil service is worthy of commendation as it usually scores on average 80% when it comes to using the funds needed to complete the procedures.
The Gabungan Rakyat Sabah leader, however, did not elaborate on the federal procedures.
Still, the implementation delays should not have arisen as salaries had never been a problem in the state civil service. Next year alone, the state has set aside RM808.06 million for emolument expenditures.
Additionally, there is RM4.57 billion earmarked for operating expenditures in the 2024 state budget.
Besides, Sabah currently has around 20,303 civil servants working in all the state ministries and departments.
Warisan deputy president Datuk Darell Leiking, however, does not support Masidi’s view, insisting that bureaucracy is the real culprit.
“Our state and federal civil servants (implementers) should have Sabah’s interest foremost. The state government needs to be aggressive to make sure the funds are utilised,” he said.
Leiking said the same principle applies when Masidi pointed out the state’s plan to act like an “ah long” in chasing the money peninsula-based companies now owed to the state.
He said the Sabah government should apply the same pressure to the state and federal sectors.
“The same ‘ah long’ pursuit should be applied to the allotted federal budget. The government must nudge the civil service so they can take a step up. At the same time, we also want Putrajaya to channel the allocations soon after they announce them in the budget (to avoid any delays).
“Further to this, the implementers should also be made accountable when the funds are not put to full use,” said the Moyog assemblyman. – The Vibes, December 2, 2023
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