SAPP: Explain the RM 601 loan to KL company
Kota Kinabalu, Mar 15, 2009: Sabah Progressive Party (SAPP) said the State Government owes the people of Sabah
an explanation why a RM 601 million loan was given by the Sabah
Development Bank (SDB) to a KL company to develop luxury condominium in
Kuala Lumpur's Ampang. As reported in the business section of a national
newspaper Thursday, a property developer, Perspektif Masa Sdn. Bhd., has
secured a RM 601 million loan from SDB to finance their RM 1.5 billion
project in Ampang.
SAPP president, Datuk Yong Teck Lee added that this loan being one of the biggest loans ever granted by SDB is sure to raise eyebrows.
"It is equivalent to the RM 600 million in
infrastructure grants allocated to the State of Sabah under the second
stimulus plan for these two years. Such a huge loan, if disbursed in Sabah,
would have been a huge stimulus to the Sabah economy. Instead, the wholly
Sabah Government-owned bank has seen it fit to lend the money to KL as
though Sabah has no need of any investment funds. The local business
community knows that banks have been very tight in lending money these
days because of the global financial crisis. But the SDB seems not to know
or care.
"Therefore, SDB should disclose whether such a huge loan outside Sabah
has obtained the approval of the State Government. The people of Sabah
deserve to know whether SDB has departed from its primary role as the
leading financial institution (DFI) to promote the growth of the Sabah
economy.
"According to the Sabah Chief Minister, who is also the Finance Minister
overseeing SDB, Sabah has many attractive investment projects created
under the Sabah Development Corridor. Don't these corridor projects need
financing?
"Or is it because our own Sabah Development Bank has lost confidence in
the Sabah economy? Are there no projects in Sabah that are viable to
qualify for SDB loans? Are there no more projects that can be profitable
for SDB to lend to?
"SDB and State officials must not underestimate the potential for loss
of investor confidence when investors see that Sabah's own development
financial institution has decided to channel a huge chunk of its loan
portfolio to non-Sabah projects.
"Already, there is widespread concern over the untimely closure of the
ceramic tile factory in Labuan this month caused by the hike in natural
gas prices sold by the Sabah Energy Corporation (SEC) to a SEDCO
subsidiary, Guocera Tiles Industries (Labuan) Sdn. Bhd. SEDCO (Sabah
Economic Development Corporation) is a State Bumiputra agency dedicated to
develop Sabah's industrial development. In spite of the wide media
coverage of the controversial closure of the Labuan tile plant, none of
the State government Ministers or officials have bothered to explain or
show any concern over the matter. Other than losing jobs, the plant
closure also affects investor confidence. In Sarawak, Penang and other
states, news of similar factory closures are promptly attended to by
senior ministers. Here in Sabah and Labuan, senior leaders do not seem to
care." said Yong.
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