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Shafie demands White Paper on Sabah Development Bank issues

KOTA KINABALU: Parti Warisan president Datuk Seri Mohd Shafie Apdal is calling for a white paper on creative accounting practices related to Sabah Development Bank Sdn Bhd.

Shafie made this request following a statement by Sabah Finance Minister Datuk Seri Masidi Manjun, who said that the state-owned development bank had hidden losses from non-performing loans through creative accounting methods, which contributed to the bank's severe financial situation.

"(It was said that) there is a creative accounting, which involves a sum of RM5 billion.

"As such, I am requesting for this matter, there must be white papers," said the Senallang assemblyman told reporters after the state assembly sitting here.

Shafie had also requested the minutes of a Sabah Development Bank meeting that implicated him in approving bonds to support the Sabah Infrastructure Projects (SIP).

"I requested detailed records, including Hansard and meeting minutes, for clarification," he said.

Shafie had been raising the issue of SMJ Energy writing off debt by Sabah International Petroleum Sdn Bhd (SIP) to Sabah Development Bank throughout the three-day state assembly sitting.

He had questioned why public funds were used to salvage a private company when the government was supposed to use it for the people's welfare in terms of sufficient water, schools, jobs, and food.

"We aren't talking about professional accounting systems but the state's governance."

Yesterday, Masidi had said that the state government is committed to turn around the dire financial status of Sabah Development Bank and assure that only local companies would get the loans.

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