I refer to the report Seven states almost bankrupt in which Deputy Finance Minister Tengku Putera Tengku Awang said that Sabah is among the seven states categorised by the Finance Ministry as "almost bankrupt".

After the many platitudes heaped upon the Barisan Nasional rule in Sabah since it took over this erstwhile state, this statement from no less than the federal deputy finance minister must have exploded in front of the Sabah chief minister like an atomic bomb.

Sabah was under the rule of opposition Parti Bersatu Sabah (PBS) from 1985 to early 1994. Despite total isolation and ostracism by the federal government, it managed to administer the state quite well without having to borrow money from outside.

Rural economics were booming, and infrastructure was well maintained. There were no problems in allocations for minor projects. Bonuses were paid on schedule and scholarships were distributed equally to deserving students.

The Sabah Foundation was making money and there wasn't any hint that its staff would one day be retrenched as under the present BN rule with a massive voluntary separation scheme (VSS) being carried not long ago.

In fact, when the BN government took over - not through a due electoral process but through a series of defections by PBS elected representatives - there were several hundred million ringgit still in the state's coffers. This money soon dried up.

The much touted and bold promises of the BN of 'good times ahead' did not materialise. The multi-billion ringgit Sabah-China pulp and paper factory in the east coast and the steel factory in Kudat never saw the light of day.

What, however, has increased are property prices with land and commercial buildings such as shophouses now beyond the reach of the local business people.

Sabah, once the richest state in Malaysia, has now become one of the poorest, if not the poorest. The deputy finance minister has now confirmed that Sabah is one of the seven almost bankrupt states in Malaysia.

When the BN exploded onto the scene in East Malaysia, lofty promises were made of improved socio-economic standards and house-ownership by every Sabahan by year 2000.

Those promises remain a pipe dream. Instead of improved socio-economic standards, the people have become poorer; their incomes have stagnated while the price of consumer goods has increased.

Unless Sabah BN subjects itself to an overhaul of its state administrative policy, the next election might be a nightmare for it.