Reveal how much state reserves put into DBOS, Soon Koh tells Uggah

KUCHING: Former Second Finance Minister Dato Sri Wong Soon Koh is calling on Deputy Chief Minister Datuk Amar Douglas Uggah to reveal how much of the state reserves had gone into state-owned Development Bank of Sarawak (DBOS).

Wong, who is Parti Sarawak Bersatu president and also state opposition leader, said DBOS conducted lending activities and managed its deposits and placement like any other bank, and is subjected to the stringent guidelines of Bank Negara Malaysia.

“We must know that the only source of deposit placement with DBOS comes from government coffers.

“It is a known fact that the overwhelming amount of deposits collected by DBOS comes from the state reserves. The placement from government statutory bodies, local authorities, and state government-controlled companies is very minimal,” he said in a statement yesterday.

He said apart from revealing how much of the state reserves had gone into DBOS, Uggah should also make known how much of the funds deposited with DBOS from the state reserves had been expended for loans, and how much of the deposit placements from the reserves were still held by DBOS.

“DBOS is not a separate entity from the state government. Hence any funds expended by the bank are from the state reserves. Any loans or any bonds issued by DBOS could become a liability of the state government as it is solely owned by the state government,” he added.

He stressed that the fact was that state reserves placed with DBOS and spent on projects equated to spending the reserves

We must know that the only source of deposit placement with DBOS comes from government coffers. Dato Sri Wong Soon Koh

until such time when all the loans lent out were fully recovered.

Wong also said that while he does not doubt the ability of those who are managing DBOS, he believes that the Sarawak government should not over-commit to too many development projects that rely too much on alternative funding.

“If we over-commit ourselves to too many multi-billion ringgit projects, rely too much on alternative funding, we may tap too much into our reserves which will affect the confidence of global investors in the economic fundamentals of our state.

“We must know that our reserves are our rainy day fund, painstakingly built up over the past 20 years or so, and therefore must be guarded zealously to enable us to navigate the challenges ahead of us,” he said.