Sabtu, Oktober 31, 2009

URGED THE STATE GOVERNMENT TO SERIOUSLY CONSIDER REVIEWING ITS RISKY VENTURE INTO BOND ISSUANCE

A bond is a debt that must be repaid at the end of its term and since the State Government planned a five-year bond of RM544 million, "it means that RM544 million would be spent today and to be repaid in 2015, after the next general elections".

"Is the State Government having cash flow problems that the State now has to borrow RM 544 million, partly for 'working capital'? What has happened to the billions of ringgit that have been reportedly allocated to Sabah under the Sabah Development Corridor as announced by the former Prime Minister and new ministers?

"If these corridor funds are forthcoming, why is there a need to borrow money for 'general investments'?

"Why did the State Government allow Sabah Development Bank (SDB), which is the co-arranger of this bond, to lend RM601 million to a non-Sabah company to develop a KL commercial project instead of using this RM601 million for "general investments" in Sabah?

"If this RM601 million were loaned to Sabah, instead of a KL company, then there is no need for the Sabah to be indebted by way of a RM 544 million bond,"

Datuk Yong Teck Lee

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