RM1.6 BILLION SUPPLEMENTARY BUDGET: SABAHANS DESERVE FULL DISCLOSURE, NOT MERELY BROAD ACCOUNTING LABELS

By DANIEL JOHN JAMBUN, President

Borneo’s Plight in Malaysia Foundation (BoPiMaFo)

KOTA KINABALU: Borneo’s Plight in Malaysia Foundation (BoPiMaFo) views the Sabah Government’s RM1.6126 billion Supplementary Supply Bill as a matter requiring immediate, comprehensive and transparent public explanation.

BoPiMaFo does not allege, without evidence, that the RM1.6 billion has disappeared or been misappropriated. However, the extraordinary size of the supplementary allocation—introduced within the same financial year—raises legitimate questions about the accuracy of the original budget, the quality of fiscal planning and the transparency of the State Government’s financial management.

The additional allocation reportedly comprises RM856 million for contributions to statutory funds, RM278 million for operational expenditure, RM210 million for investments, RM162 million for administrative expenditure, RM93 million for domestic grants and RM13 million for special allocations. A further RM435.54 million in supplementary development estimates reportedly covers 35 expenditure heads under nine ministries. 

These are enormous sums of public money. Merely placing them under broad headings such as “statutory funds”, “investments”, “administrative expenditure” and “operational expenditure” does not amount to adequate accountability.

A TRANSFER BETWEEN GOVERNMENT ACCOUNTS IS STILL A USE OF PUBLIC MONEY

The Government may argue that RM856 million is being transferred into statutory or trust funds and has therefore not “gone” anywhere.

That explanation is incomplete.

A transfer into a statutory fund changes the legal and accounting destination of public money. It may be intended to cover an accumulated deficit, finance existing commitments, support particular projects or reserve funds for future expenditure.

The people must therefore be told:

the opening balance of each fund;

the amount transferred into each fund;

the liabilities or projects to be financed;

the anticipated utilisation period;

the closing balance after expenditure; and

the legal authority and policy justification for each transfer.

The words “book transfer” must never become a convenient shield against public scrutiny.

WHY WAS THIS NOT PROVIDED FOR IN THE ORIGINAL BUDGET?

A supplementary budget is not necessarily improper. Governments may encounter emergencies, unexpected revenue changes or genuine new expenditure requirements.

However, an additional RM1.6 billion is not a minor adjustment.

The State Government must explain which circumstances were genuinely unforeseen when the original 2026 Budget was prepared and which expenditures arose from earlier obligations that should reasonably have been anticipated.

Sabahans are entitled to ask whether this supplementary allocation reflects:

1. genuinely new and urgent public needs;

2. previously undisclosed financial commitments;

3. cost overruns or weaknesses in expenditure control;

4. deficits within State funds or development accounts;

5. delayed projects carried forward from previous years; or

6. inaccurate revenue and expenditure projections in the original budget.

Without such disclosure, the public cannot determine whether the supplementary budget represents prudent fiscal management or an attempt to correct weaknesses in the original financial planning.

THE RM210 MILLION INVESTMENT ALLOCATION REQUIRES PARTICULAR SCRUTINY

BoPiMaFo is especially concerned about the RM210 million classified for investments, including reported equity investments connected with State government-linked companies.

The Government must disclose:

the names of every company or investment vehicle involved;

the amount allocated to each entity;

the purpose and commercial justification;

the present financial position of each recipient;

whether the allocation is an equity injection, loan, guarantee or financial rescue;

the projected return to the State; and

the safeguards against political interference, mismanagement and losses.

Public money must not be used to support underperforming State entities without a credible restructuring plan, independent valuation and measurable public benefit.

The people of Sabah have a right to know whether these investments will generate income and employment or merely cover earlier corporate weaknesses.

ADMINISTRATIVE AND OPERATIONAL EXPENDITURE MUST BE ITEMISED

The combined RM440 million for operational and administrative expenditure is also substantial.

The Government should disclose how much is intended for salaries, allowances, supplies, maintenance, professional services, contractual commitments, government agencies and other administrative purposes.

At a time when Sabahans continue to suffer from water shortages, damaged roads, unreliable electricity, poverty and inadequate rural infrastructure, every substantial administrative allocation must be justified against the State’s urgent development priorities.

The supplementary budget must improve the lives of Sabahans—not merely enlarge the machinery of government.

LEGISLATIVE APPROVAL IS NOT THE END OF ACCOUNTABILITY

The passage of a Bill by the State Legislative Assembly does not remove the Government’s continuing duty to account for the money.

Members of the Assembly must be supplied with sufficient information to scrutinise every major allocation. The public should also have access to the relevant schedules, fund statements and expenditure purposes.

BoPiMaFo therefore calls upon the Sabah Government to publish:

1. the complete Supplementary Supply and Development Estimates;

2. an itemised schedule for the entire RM1.6126 billion;

3. the financial position of every statutory and trust fund receiving money;

4. the names and details of all investment recipients;

5. the projects and agencies benefiting from domestic grants and special allocations;

6. quarterly reports on actual expenditure and project implementation; and

7. subsequent findings by the Auditor-General and the relevant legislative oversight committees.

SABAH’S MONEY MUST PRODUCE MEASURABLE RESULTS

The central issue is not simply:

“Where has the RM1.6 billion gone?”

The more responsible question is:

Why did Sabah require an additional RM1.6 billion within the same financial year, what specific obligations will it finance, who will receive the money, and what measurable benefits will the people obtain?

BoPiMaFo supports legitimate expenditure for development, infrastructure, essential services and the welfare of Sabahans.

But support for development must never be confused with permission to spend without detailed accountability.

Sabah is rich in natural resources, yet its people continue to endure some of the country’s most serious infrastructure and poverty challenges. The Government must therefore demonstrate that every ringgit is traceable from legislative approval to the final project, recipient and public outcome.

RM1.6 billion cannot be satisfactorily explained through percentages, pie charts and broad accounting categories alone.

Every ringgit must have:

a clearly identified purpose,

a lawful destination,

a responsible implementing agency,

a definite timetable, and

a measurable benefit for the people of Sabah.

The money belongs to the people.

The people have the right to know.

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