Friday 7 October 2016

Sabahans just love their 1MDB Umno-led BN, despite leakages and chronic poverty


Sabahans just love their 1MDB Umno-led BN, despite leakages and chronic poverty

According to an unnamed senior Sabah government official, as much as 60% of federal allocations for water projects have been siphoned off.

Many of the projects were broken up into smaller parcels of up tp RM100,000 each from some RM3.3 billion in federal allocations.

Wow! That’s a major leak for the Sabah Water Department, don’t you think so.

Simply put it, that means for every RM1 in allocation for water projects in Sabah over the years, 60 sen is stolen. No wonder Sabahans still have water supply woes.

But, what the heck man! It’s all OK man! You love and trust the state and federal governments that you voted for in past two general elections (GE) to keep the 1Malaysia Development Berhad (1MDB) Prime Minister Najib Razak and his Umno-led Barisan Nasional (BN) in power at state and Putrajaya.

It’s OK man, Sabahans! You are all still better off than some other countries with 90% in leakages!

Perhaps Sabahans can consider a rethink when the leakages reach 90%?

Perhaps, that is also the reason why, despite its vast resources and federal government backing, the Sabah government appears to be struggling to reduce poverty in the state.

Here’s two stories from Free Malaysia Today (FMT) for Malaysians, especially Sabahans, to chew:

"60% of Sabah water projects ‘siphoned off’

FMT Reporters

| October 8, 2016

Many projects broken up into smaller parcels of up to RM100,000 each from total federal allocations of RM3.3bn, says report.


KOTA KINABALU: As much as 60 percent of federal allocations for water projects have been siphoned off, according to a senior state government official.

Only 40 percent of the federal allocations reached the ground in Sabah, according to an unnamed official quoted in a news report.

The Federal Government has made allocations amounting to RM3.3 billion for water projects in Sabah since 2010.

The report said the projects had been broken up into smaller parcels of up to RM100,000 in value to avoid the tender process, and that the tender process had been fixed so that proxy companies would get the project at inflated prices.

Projects of less than RM100,000 in value can be approved by the director or deputy director of the department.

Two senior civil servants have been arrested, together with a brother and an accountant of one of them.

A total of 38 companies owned by family and friends of the two officials are believed to have been involved as fronts to take part in limited tenders for the projects over the past five years.
Last week, the Malaysian Anti-Corruption Commission announced it had seized a total of RM57 million in cash in the offices, homes and safety deposit boxes of the two officials, as well as jewellery and 127 land titles, and had frozen RM60 million in personal and company bank accounts."

"EPU re-affirms chronic poverty in Sabah

November 13, 2013

Sabah STAR chief Jeffrey Kitingan pointed out that a one-off payment of RM820.64 million could resolve the problem of the 8,457 and 1,801 households in Sabah and Sarawak.

 

KOTA KINABALU: Despite its vast resources and federal government backing, the Sabah government appears to be struggling to reduce poverty in the state.

Sabah STAR chairman Jeffrey Kitingan said figures released by the Economic Planning Unit (EPU) of the PM’s Department for the various types of poverty in Sabah, Sarawak and the nation speak for themselves and is a slap in the face of the state government.

The rosy picture painted by the state Barisan Nasional government headed by Chief Minister Musa Aman on the eradication of poverty in Sabah clearly contradicts that of the EPU, he said.

According to EPU figures, Sabah had the lion’s share of abject poor households in the nation at 53.5% while Sarawak accounted for 11.4%. In the poor household category, Sabah had 39.3% while Sarawak had 11.7%.

"Whatever the cut-off points in the definition of ‘abject poor’ and ‘poor’ categories and the number of households involved, the percentages reveal glaring failures of the federal and Sabah governments in resolving the poverty problems in Sabah.

“The efforts of the Sabah government in reducing poverty levels in Sabah are poor and miserable compared to the efforts of the Sarawak government, if the numbers of the Prime Minister’s Department are relied upon.

“Yet, the Sabah government has been boasting that they have done a good job in reducing poverty in Sabah,” he noted.

The state assembly representative for the rural seat of Bingkor in the Keningau parliamentary constituency believes the EPU figures may in fact be five to 10 times less than the reality.

“In truth, in the villages and even in urban and suburban areas of Sabah, one only need to look … it will not be surprising that there are more than 8,457 abject poor households and 42,400 poor households,” he said.

Only RM820mil needed

Kitingan said it was an irony that Sabah and Sarawak are the poorest in Malaysia despite being the two biggest oil and gas producers who contributed about RM18 billion and RM45 billion respectively to Petronas and the federal government last year.

Their 5% share of the take under an oil and gas wealth sharing contract signed in 1976 amounted to about RM941 million for Sabah and RM2.37 billion for Sarawak.

Kitingan pointed out that a one-off payment of RM820.64 million could resolve the problem of the 8,457 and 1,801 households in Sabah and Sarawak.

This figure is derived, he said, by giving each household the equivalent of RM80,000 comprising a house costing RM40,000 and another RM40,000 in special grant to develop their own 15-acre plot of land.

“Assuming a RM300 monthly return on each acre of their agriculture, they will be each getting RM4,500 per month in household income, higher than most university graduates’ income.

“What is RM820 million compared to the RM63 billion of oil and gas stolen annually from Sabah and Sarawak?” he asked.

The state government, he said, should seek an immediate increase of the oil payment from 5% to 20% from the federal government to help solve the poverty problems of the 8,457 and 42,400 households stated by the EPU.

Along with the additional revenue of nearly RM3 billion based on the figures given by the Sabah government for last year, the state coffers will be further swelled with the return of the 40% net revenue collected by the federal government from Sabah as provided under the Tenth Schedule of the Federal Constitution, he said.

“This 20% is not wishful thinking as it has even been declared by the Chief Minister that the government will be seeking a review of the oil payment. Unless of course, this is an empty promise and election gimmick given during the run-up the GE-13,” Kitingan said.
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