The Sabah state assembly today passed the First Supplementary Supply Bill of RM1.394 billion.

Chief Minister Musa Aman, who is also Finance Minister, said that a large portion of the allocation, involving RM1.088 billion, did not involve cash flow, but to meet the requirements of the financial procedures.

“This additional allocation is for several expenditures, which are all crucial to ensure the government administrative machinery runs smoothly,” he said when tabling the Bill.

 He said among the additional estimates which did not involve cash flow was RM675 million for investment in Innoprise Corporation Sdn Bhd (ICSB).

“This investment is actually financed through dividend payment received by the government from the Sabah Foundation subsidiary which is reinvested as equity in ICSB.

“Another RM300 million is needed for contribution into the development fund. This contribution is necessary to overcome a deficit in the state’s development fund.

“Further, RM113.8 million is needed to streamline the advance payment accounts for those involved in emergency work for repair of infrastructure facilities which are managed by the Public Works Department, State Railway Department and Drainage and Irrigation Department, and also other urgent expenditures,” he added.

As such, Musa said, the actual cash withdrawal was only RM305.7 million.  

He said the largest additional allocation which involved cash flow was for maintenance of roads and bridges in the state, which amounted to RM120 million.

A total of RM66.9 million is to accommodate the cost of urgent work which included to maintain and repair old and damaged water pipes and to implement non-revenue water reduction programme, he added.

The sitting resumes tomorrow.

- Bernama