THE RM320 million federal loan for Sabah to address its water crisis announced in mid-2023 remains unutilised due to bureaucratic delays.
The money however was already received by the Sabah government.
Sabah Finance Minister Datuk Seri Masidi Manjun confirmed that the money, initially believed to be aid but later revealed as a soft loan from Putrajaya, was received by the state government at the end of last year.
His comments follow Kota Belud MP Isnaraissah Munirah Majilis’ remarks in the Dewan Rakyat on February 14, where she believed the funds had yet to be disbursed and therefore, delaying water projects in the state.
On June 1, 2023, Sabah chief minister Datuk Seri Hajiji Noor announced a RM320.25 million fund to deal with Sabah’s water issues.
The money would fund six short-term measures covering 20 projects in Kota Kinabalu, Tuaran, Putatan, Papar, Beaufort, Keningau, Tawau, Lahad Datu, and Sandakan.
However, Masidi revealed that despite receiving RM300 million, the state has yet to disburse the funds.
“According to the (Sabah Finance Ministry) permanent secretary, the Sabah government received RM300 million at the end of last year.
“This week, the state Water Department submitted tender documents to the ministry for approval, which will be discussed in the upcoming meeting,” he was quoted as saying by The Borneo Post.
In Parliament last week, Munirah sought an update, noting that Treasury approval for the projects is only expected by mid-2025.
Additionally, she said the promised RM320 million was also reduced to RM300 million, with RM100 million being new funding, while RM200 million was already allocated under the 12th Malaysia Plan.
Sabah Public Works Minister Datuk Shahelmy Yahya, who oversees the projects, previously acknowledged multiple delays in releasing the funds.
Tenders were initially called on February 24 last year, but in July, Shahelmy cited bureaucratic hurdles—including value assessments and project adjustments—as reasons for the prolonged delays. - February 19, 2025
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