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RM420mil additional funding approved

Published on: Tuesday, July 15, 2014

Kota Kinabalu: The State Assembly unanimously approved the First Supplementary Supply (2014) Enactment 2014 to take out RM420.66 million from the Consolidated Fund for additional expenditure this year.

Tabling the Bill, Chief Minister Datuk Seri Musa Aman who is also State Finance Minister, said out of the sum being taken out only RM272.05 million involved actual cash flow.

The biggest amount applied was RM100 million to accommodate equity investment in Syarikat Innoprise Corporation for the Sabah International Convention Centre (SICC).

While RM47.7 million was for this year's Water Bulk Supply Rate and arrears payment to the state water concessionaires, he said.

He said another RM63.6 million was needed to cover expenses to outsource the maintenance of water treatment plants, which was more economical instead of employing permanent staff.

Musa said an additional RM38,087,880 (RM26.69 million from the Consolidated Fund and RM11.41 million from Federal loan) was needed for works involving three ministries.

The sum from the Consolidated Fund was needed to complete ongoing projects and pay up contracts that have been committed such as the land acquisition for government projects involving RM20 million and sustainable forest management projects contracted under the Forestry Department involving RM3.5 million.

There was also a need to settle payment for works completed last year but not paid in the 2013 fiscal year namely the additional basic infrastructure project for the resettlement scheme at the Kota Kinabalu Industrial Park (KKIP) involving RM449,510 and three shop house projects in Pelantong, Beluran costing RM1.21 million, Tenghilan (RM242,000) and Long Pasia, Sipitang (RM900,000).

The Resource Development and Information Technology Ministry also needed RM377,420 for the Kreatif Arama-IT project, he said.

Musa said the sum of RM11.41 million that would be obtained through Federal loan was for the off-site preparation works of two projects in KKIP namely the Automobile and Steel as well as electricity supply improvement.

Meanwhile, the balance of the sum applied, RM148.61 million was merely for accounting purposes such as for the advance given to do emergency works including repair of utility and infrastructure facilities such as pipes and water treatment plants, drainage and irrigation as well as for the railway tracks.