“By financing so-called projects through these offshore loans, the state government needs to be answerable to the State Assembly on the specifics.”
Chong has questions: To whom were these offshore loans paid? What are the projects involved? Has any open tenders been called for the award of these projects? Are these projects over-priced? How is the progress of these projects?
Chong, who is also Bandar Kuching MP and DAP Sarawak Chairman, lamented that the Sarawak Government was paying “obscenely high interest in US dollars” because it has been engaging in offshore loans “to circumvent the scrutiny of the Sarawak Assembly on a major portion of its expenditure”.
“Adenan has tried to justify these borrowings but failed miserably,” said Chong. “It only confirms my suspicion that there are great improprieties in these offshore loans taken by the Sarawak Government.”
“Adenan only provided some details in the State Assembly after I threatened to move a motion against him on the matter. He took six months to give me an answer.”
Again, the DAP lawmaker demanded to know the names of the people involved in the bonds issued by the Sarawak Government. “Who are the bond holders?” he asked. “Are these bond holders related to the top Barisan Nasional (BN) leaders with a lot of money overseas? Why is the Sarawak Government paying so much interest on these loans?”
“On average, the state government is paying more than 6 per cent per annum on these loans.”
The 6 per cent, pointed out Chong, is 40 per cent more than the average interest paid on sovereign loans taken by the Malaysian Government at various times. “Why borrow and pay interest when we have RM27 billion in reserves sitting in the bank, in Fixed Deposit, earning only 2 per cent to 3 per cent interest per annum?”
“It doesn’t make financial sense. When the money is paid out from these offshore loans, no questions can be asked in the State Assembly.”
Chong conceded that it was normal for the government to seek finance from the market. However, he added, it’s not normal in this particular situation as all the loans taken were at extremely high interest rates payable by the state government.
Chong said that based on figures revealed by the Sarawak Government, the particulars on the offshore loans taken by it were as follows for the year end 2015: Sarawak Capital Incorporated Bond due in 2026. Principal amount still owing is USD165 million and balance of interest owing is USD148.96 million; Equisar International Incorporated Notes due in 2026. Principal amount still owing is USD533.5 million and balance of interest owing is USD556.75 million; and SSG Resources Ltd Notes due in 2022. Principal amount still owing is USD560 million and balance of interest still owing is USD238 million.-Free Malaysia Today
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