Channel allocation into trust fund, Kuala Lumpur urged
Published on: Monday, May 29, 2023
Hajiji said Sabah had been allocated RM5.709 billion for development from the Federal Government in 2022. Of the amount, RM4.457 billion was spent, while as much as RM1.252 billion could not be spent due to some implementation issues.
THE State Government has proposed to the Federal Government to channel Sabah’s development allocation into a trust fund, said Chief Minister Datuk Seri Hajiji Noor.
“We hope the Federal Government will agree as this is the best way for us so that we will not bear any more losses from any unutilised allocations,” he said to a question by Moyog assemblyman Datuk Darell Leiking, at the State Legislative Assembly, on May 23.
ADVERTISEMENT Hajiji said Sabah had been allocated RM5.709 billion for development from the Federal Government in 2022. Of the amount, RM4.457 billion was spent, while as much as RM1.252 billion could not be spent due to some implementation issues.
Hajiji cited five main implementation issues, namely contractor, utility, land, management and implementation agency:
- Appointed contractors lack sufficient financial capacity or financial credit, labour, and project management weaknesses;
- Documentation delays for utility connections, delays/ bureaucracy of utility companies and utility mapping in the ground (subterranean) and under the surface (sub-surface) are challenging to detect.
- Disturbed land reclamation process, objections from landowners near the proposed location for development/use were found unsuitable, difficult topographical conditions, no space/access to the site, or obstacles.
- Stop work orders by the enforcement officers, difficulty getting building supplies, and the price of materials in the market increases.
- Delay in reviewing and approving Variation Order (VO), payment delays to consultants/contractors and suppliers, delay in reviewing and approving an extension of time or Extension of Time (EOT). Hajiji said the State Government always takes proactive steps in dealing with these matters.
“Among them, we are ensuring that the feasibility of a project applied for implementation is high in the current year and the following years,” he said.
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The State Government, he said, would also ensure that all project applications to the Federal Government need to be certified by the State Government first, as stated in the Guidelines for the Preparation of the Half-Term Review of the Twelfth Malaysia Plan and Federally-Funded Development Project Applications for 2024-2025.
“This is to ensure that the planning follows the state’s requirements and that the project’s implementation is completed within the stipulated period.”
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He added that to ensure implementation of Federal development projects is carried out as planned, monitoring efforts are carried out continuously by the State Government in collaboration with the State Development Office (SDO).
“Among them is through the Sabah State Development Action Council Meeting (MTPNg), which monitors and discusses the implementation issues of Federal development projects in the State.
“In addition, the Sabah State Development Action Committee (JTPNg) was also established to ensure that the decisions of the MTPNg meeting are fully implemented at the state level,” he said.
Aside from that, the empowerment of the Sabah Public Works Department (PWD) through the recognition of the Department as a technical department under the Treasury Directive (AP 182) by the Federal Government as well as the addition of new technical officers, are also among the essential initiatives that assist the State Government in planning and implementing state development projects more efficiently.
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