KUCHING: Discussions to find a mechanism on how the federal government will refund the state on funds expended on the repairs or construction of dilapidated schools and clinics in Sarawak are still ongoing, Premier Tan Sri Abang Johari Abang Openg said today.

This arrangement, where a state uses its funds to fix or construct federal government projects is unusual, Abang Johari told reporters at the second day of his Hari Raya Aidilfitri open house here.

He said a mechanism therefore has to be found for the state to get its money back.

"It is the first time that a state had offered to help out the federal government on the condition that the state funds used for federal projects is refunded," he explained.

"We have forwarded a number of suggestions and we are studying the proposals."

Abang Johari said Sarawak has the ability to help the federal government revive abandoned projects, like health clinics and dilapidated schools.

He said the facilities included the construction and repairs to staff quarters.

Most of the abandoned projects are in the rural areas where construction and material costs would just balloon due to poor logistics.

The premier said the state government could not wait until the federal government has the funds for the clinics or schools to be built or fixed.

"We need to make the repairs quick. We need to speed up.

"These facilities are important for the well-being of the people.

Abang Johari said Sarawak's offer to help is not a case of the state having a lot of money to throw around.

"If we have the extra funds that could be used to assist the federal government, then we will utilise it.

"What is important is people must have schools and clinics and the best service the government could give."

Sarawak's insistence of a refund mechanism may have stemmed from a bad experience it had when dealing with Tun Dr Mahathir Mohamad's administration in 2022.

Sarawak, after an agreement with the Education Ministry, made an advancement payment of RM1 billion to repair the most dilapidated schools in the state.

After the payment was made, the then Finance Minister turned around to say Sarawak has no say on how the money would be used after it was deposited into the Consolidated Fund.

The minister, Lim Guan Eng, had said the RM1 billion would instead be used to repay the state's loan taken from the federal government.

https://www.nst.com.my/news/nation/2024/04/1036888/talks-still-ongoing-find-way-putrajaya-repay-sarawak-monies-spent