Chong: Why set aside RM2.6 bln for trust fund?

KUCHING: The Sarawak government is asked to explain why it has set aside RM2.6 billion for the Government Contribution towards Approved Agencies Trust Fund this year alone when the loan repayment amount is only over RM1 billion a year.

In demanding so yesterday, Chong Chieng Jen (PH-Kota Sentosa) said the trust fund was created to enable the Sarawak government to make payments to government-owned companies which had raised bond from the general public.

“We know that these companies have collected money from lenders but we do not know where the proceeds of the loans have gone to.

“The govenrment has to pump money into the trust fund every year to repay the loans, but we don’t know how the proceeds of the loans have been used.

“TheState Legislative Assembly has not been informed of this but it will approve the amount,” he told a press conference after debating the motions of thanks on the Yang di-Pertua Negeri’s opening address.

Chong, who is Deputy Minister of Domestic Trade and Consumer Affairs and PH Sarawak chairman, alleged that the Sarawak government ‘is circumventing the budgeting procedures’.

He said even if those loans raised were meant for the Sarawak government to carry out development projects in the state, it should be done through proper channel.

He said the government of the day ought to include these amounts in its annual budget rather than approving them under the trust fund in the House.

He said the RM2.6 billion allocated for the trust fund was about 20 per cent of the total budget of RM11 billion for this year.

Given the huge amounts involved, Chong asked: “Is this another 1MDB (1Malaysia Development Berhad) scandal in the making?”