KUALA LUMPUR (Bernama) – The Sarawak state government has yet to officially respond to the Federal government on the proposed RM1 billion loan offer, which will be allocated to repair dilapidated schools in the state.
The Malaysian Finance Ministry in a statement yesterday said the Federal government’s stand on the method of dilapidated school repairs in Sarawak by four legal mechanisms has been explained to the Sarawak government during a meeting at the ministry on March 11, followed by a letter dated March 20.
“The Federal government has agreed to partially accept the loan repayment from the Sarawak government amounting to RM1 billion,” it said.
The statement explained that it would be subjected to four prescribed legal mechanisms.
“The Sarawak government still owes the Federal government RM2.375 billion. If the RM1 billion is repaid, then the Sarawak government will still owe the Federal government RM1.375 billion,” it added.
The ministry also explained the four prescribed legal mechanisms.
Firstly, the Sarawak government must repay up to RM1 billion from its total debt from the Federal government into the Federal Government Consolidated Fund. This is in line with the law and the Federal Constitution of Malaysia.
Secondly, the Federal government will channel the same amount as repaid by the state government as allocation for use for projects to repair dilapidated schools in Sarawak.
Thirdly, the repair works of the dilapidated schools in Sarawak should be offered by open tender, to ensure transparency and fair value based on the current Federal government financial arrangements.
Fourth, the Federal government is willing to take into account the priority of the Sarawak government in determining the schools to be repaired.