06 July 2019
KUALA LUMPUR, July 6 — The Sarawak state government has yet to provide any official feedback to the Federal government on the proposed loan offer, amounting to RM1 billion, which will be allocated for repairs of dilapidated schools in the state. “In general, the Federal government has agreed to partially accept the loan repayment from the Sarawak government amounting to RM1 billion which will be allocated for repairs of dilapidated schools in the state,” it said.“At the same time, the Sarawak government still owes the Federal government a total of RM 2.375 billion. If the RM1 billion is repaid, then the Sarawak government will still owe the Federal government a sum of RM 1.375 billion,” it added.
According to the statement, if it is deemed to be a repayment of the loan to the Federal government, it means that the RM1 billion fund is actually owned by the Federal government, to be used to repair schools in Sarawak.Firstly, the Sarawak government must repay up to RM1 billion from its total debt from the Federal government into the Federal Government Consolidated Fund. This is in line with the law and the Federal Constitution of Malaysia.