KUALA LUMPUR, July 25 — The Sarawak state government has already agreed that it must repay its debts before any allocations can be given for school repair works, Tony Pua said today.

Pua, who is political secretary to Finance Minister Lim Guan Eng, said that Putrajaya’s stand on the matter should be viewed positively, as it is in fact in line with that of the Sarawak state government’s, as mentioned in an official letter by the state’s chief minister, to the Finance Ministry (MOF) on July 15 this year.

“For the record, the federal government had agreed on principle, to accept part of the repayment of the Sarawak state government’s debt of RM1 billion to the federal government, to be allocated for repair works in poor schools, subject to the legal mechanism agreed upon.

“Firstly, the Sarawak state government would repay RM1 billion of its debt to the federal government, into the federal government consolidated fund. This is in line with the fixed laws and the Federal Constitution of Malaysia.

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“Secondly, the federal government would allocate the same amount as that repaid by the (Sarawak) state government, to be used for the repair works of poor schools in Sarawak.

“Thirdly, the repair works of poor schools in Sarawak must be offered via an open tender, to ensure transparency and value for money, based on the current financial guidelines of the federal government,” Pua said, adding that the federal government is also prepared to consider the Sarawak state government’s selection of poor schools to be repaired.

Pua said that Lim has already stated his readiness to sincerely work together with the Sarawak government, to ensure that the repair works of the poor schools commence smoothly.

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“His statement which was based on facts and understanding of all parties, should not have been made a political fodder by certain quarters,” Pua added.

On Tuesday, Umno Supreme Council member Datuk Seri Abdul Rahman Dahla chided Lim for saying Sarawak should pay its debt to the federal government before allocations are given to them to repair poor schools in the state.

He said Lim before making such statements should first fulfill the promise he made on March 3, 2017, when he pledged that DAP will return some taxes collected from Sabah and Sarawak to the state governments, should it gain federal power.

He cited news reports from the end of July last year that stated five per cent of Sarawak’s oil royalties is RM1.58 billion, while five per cent of Sabah’s oil royalties amount to RM1.32 billion.

Describing Lim’s statement of requiring Sarawak to repay its debts before any allocations can be given as arrogant, Abdul Rahman said in the latter’s first year as Finance Minister, RM82 billion was collected from Petronas.

On Tuesday, the Finance Ministry issued a statement which said the federal government will provide up to RM350 million for the repairs in Sarawak, once the state government repays the same amount of debts. As of June 30, Sarawak still owes RM2.352 billion to the federal government. — — — —