ALMOST RM1B IN OIL ROYALTY

KOTA KINABALU: Petronas paid Sabah RM941.25 million in oil royalty this year - the highest amount ever in the State's history, said Chief Minister Datuk Seri Musa Aman.

The amount also exceeded the State Government's initial estimate of RM774.6 million, said Musa, who is also State Finance Minister, at the State Legislative Assembly, Wednesday.

In his Budget winding up speech for the Finance Ministry, he also informed House members that the Federal Government was now taking a look at the Petronas oil royalty issue and is expected to give its feedback at an appropriate time.

Responding to the query by Luyang Assemblywoman Melanie Chia who asked if the State Government would be paying the RM544 million bond at one go upon its maturity date in 2013, which may result in a cumulative deficit of RM804.48 million, he said the State Government was confident it would be able to provide sufficient allocation when it is time to pay the bond.

He also corrected Chia that the bond maturity period is five years and since it was issued in 2009, its maturity date is 2014 and not 2013.

Musa also criticised Sri Tanjung Assemblyman Jimmy Wong who in debating the State 2013 Budget had claimed that the State Budget looked the same each year.

"This is a view from people who do not know how to distinguish between right and the wrong. It is a typical opposition ploy to always deny the successes and achievements of the Government.

"By refusing to look and listen they continue to tell the people that the Barisan Nasional (BN) Government is incompetent, incapable and not struggling for the rakyat," he said.

Musa said the State's financial standing had been improving each year and apart from introducing new programmes, the old ones that had greatly benefited the people were maintained and continued.

"This does not mean that the State Government is out of ideas because the implementation of the continuing programmes is always being monitored and improved in line with the current needs of the people," he said.

Contrary to the Sri Tanjung Assemblyman's statement, he said the strategy and approach taken in preparing the State Budget had always been dynamic from year to year.

The strategies introduced each year had successfully produced effective output such as in increasing the State revenue collection, which could be seen in 2007 when revenue went up to RM2.37 billion and then touched RM3.3 billion in 2008.

"As I mentioned in my State 2013 Budget speech last Friday, the highest State revenue collection ever was in 2011 when RM4.368 billion was collected," he said.

Musa said that by snubbing the State financial stand and claiming that that the State Consolidated Fund had shrunk, Wong had shown that he did not understand the State Budget planning mechanism.

"The Government is prepared to provide a huge allocation for the State's development although it realised that it will reduce the State Consolidated Fund.

"(But), for whom is this development if not for the prosperity of the State and people. What is important is the State's financial coffers remain strong even though we increase expenditure," he said.

Musa also explained that the Chief Minister's Department (CMD) received the highest allocation for next year because it had to address so many things.

He cited a RM203 million development fund specifically for the development of religious, rural, sentuhan kasih (touch point programme), forestry and land, while RM443.9 million was to pay for the salary and operations of the various departments under the CMD.

Meanwhile, a major portion of the allocation to the Finance Ministry would be distributed to the relevant departments to implement programmes and projects.

A total of RM960 million is payment for the development of several trust share accounts and another RM873.6 million is to be given for special fund projects under the oil palm industry, repair damages by natural disasters and support infrastructure, government buildings, grant to non-Muslim religious bodies and schools, government vehicles, payment of State Government's debts, payment to the water concessionaires as well as investments equity.

Other expenses included operational cost and salary.

"If the Sri Tanjung Assemblyman had read the explanation in the distributed State 2013 Budget booklet, he should have understood this because it has already been clearly explained there.

"So the conclusion is the assemblyman did not read the State 2013 Budget booklet and did not even know the issues raised by him," he said in response to what he described as "unhealthy accusations" by Wong when disputing the big allocation for the Chief Minister's Department and Finance Ministry.

The State 2013 Budget of RM4.088 billion, which is the highest in the State's financial history was passed unanimously after 30 assemblymen, minus the representative from Sebatik, took part in the two-day debate session.