SABAH opposition leader Datuk Seri Mohd Shafie Apdal has alleged that RM500 million from a RM1 billion state bond issued under the previous Barisan Nasional (BN) government was spent outside Sabah without a clear explanation.
The Warisan president said that when his administration took power in 2018, only RM400 million was available in the Sinking Fund, which was far short of the RM1 billion principal needed to repay the debt to Putrajaya by 2019.
Shafie said this in response to Finance Minister Datuk Seri Masidi Manjun, whom he accused of downplaying Warisan’s role in settling the bond when he was chief minister between 2018 and 2020.
“He is trying to make it sound like the repayment happened on its own, as if Warisan just sat there and the debt paid itself. But that is far from the truth,” Shafie said.
“This was barely 40 percent of what was needed to repay the bond principal, without even counting interest.
“If they were so prudent, why was the Sinking Fund far short of the repayment amount by 2018? And why did so much of the borrowed money benefit another state instead of Sabah?” he asked in a statement in Kota Kinabalu on Tuesday.
Shafie said Warisan inherited a RM600 million shortfall in the principal, forcing his administration to raise the amount within 12 months, plus additional funds to cover for interest.
He said this was achieved through cost-cutting measures, tighter spending controls and resource reallocation.
The former chief minister also pressed Masidi, who was in the BN cabinet when the bond was issued, to account for the bond’s utilisation and clarify whether the spending brought any direct benefit to Sabahans.
On Sunday, Masidi dismissed Shafie’s claims, insisting RM200 million was set aside each year from 2014 to 2019, as required by Bank Negara Malaysia under the sinking fund — formally known as Kumpulan Wang Amanah Bagi Bayaran Balik Bon.
Masidi’s statement came after Shafie suggested the state could afford to write off student loans for working graduates, similar to how his administration managed to settle the bond debt. - August 12, 2025
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