Government finding way to establish trust fund: Masidi
Published on: Monday, May 29, 2023
By: Nikko Fabian
Masidi said the State Government is currently looking into ways to realise the Sabah trust fund. - FMT pic
Kota Kinabalu: The proposal to set up a Sabah trust fund needs certain “close twisting” before it can be realised, according to State Finance Minister Datuk Seri Masidi Manjun.
Nevertheless, he said, the State Government led by Chief Minister Datuk Seri Hajiji Noor is now paying serious attention to the idea for the good of Sabah and its people.
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Masidi had, in February this year, proposed the setting up of a trust fund for Sabah to channel unused development allocations that would otherwise be carried over to the next year.
He raised the idea considering that “Sabah is given billions of ringgit for development but sometimes the allocations are not fully utilised within the given limited period due to some pressing circumstances, including bureaucracy in the departments and agencies concerned.
During the recent State Legislative Assembly sitting, Hajiji had also proposed the same idea, in a reply to Moyog Assemblyman Datuk Darell Leiking.
Hajiji explained that the establishment of a trust fund is a great method to ensure that Sabah does not lose out from the allocations not spent.
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Masidi, who is also Gabungan Rakyat Sabah (GRS) Secretary-General, said the State Government is currently looking into ways to realise the Sabah trust fund.
“There are certain things that have to be worked out before we can proceed further with the plan,” he told reporters.
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He briefly explained that the Government will have to first make sure that the proposed, if accepted by the legislators, complies with the Treasury Instruction (TI) currently enforced.
“If the TI does not provide for it, then obviously there is a need for us to sit down and come up with an amendment to the TI to allow the trust fund to be set up,” he said.
To a question, Masidi said there have been no meetings on the matter, so far
“But our officers have been trying to find a way for the trust fund idea to be realised.”
Sabah received RM5.7 billion in development allocations from Putrajaya last year, of which only RM4.4 billion was spent due to problems with the implementation of projects.
Masidi said the remaining funds could not be spent due to several implementation issues, including those related to contractors, utility, land and management, as well as issues with the implementing agencies.
If approved and implemented, the State Government will ensure allocations in the trust fund are used efficiently and according to the purposes of the allocations.
Once the funds are put in a trust fund, they can be used even though they have technically “expired”, Hajiji explained.
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