Scandal of Sarawak’s Budget Black Hole

Scandal of Sarawak’s Budget Black Hole

19 Aug 2010

DAP - Winners at Sibu, have tough questions for Taib

Scandal highlighted by DAP

Taib Mahmud, the Chief Minister of Sarawak, has failed to account for a staggering RM 4.8 billion of government expenditure over the past 3 years alone, according to explosive figures released by the opposition DAP party.  This represents more than half the Development Budget, which in turn represents nearly three quarters of the total expenditure for the State!

Put another way, in 2009 RM 1.825 billion of the State’s total expenditure was allocated to persons unknown, compared to the government’s estimated revenue for that year of RM 3.726 billion.  That is about half of all your cash!

(see esp page 6/7)

The secret projects soaking up Sarawak’s cash

The DAP, who recently triumphed over BN at the Sibu by-election, have produced a closely argued Alternative Budget for 2010, in which they demand a return to proper accounting methods, so that taxpayers can know exactly how their money has been spent.  This is their right and it is also Malaysian law, in line with the rest of the civilised world.

The DAP figures show that Taib has not only reserved 80% of the State’s entire Development Budget to the three Ministries controlled directly by himself, but that shockingly most of that money has been spent on secret projects about which he has provided zero information.

Under the circumstances the people of Sarawak are entitled to assume that the money has been stolen. As the DAP points out:

“This [state of affairs] defies the basic principle of political accountability in  a democratic system and is susceptible to great abuses”.

So let us all guess what those abuses might be and where the money might have gone. Some on more Rolls Royces for the Chief Minister?  Some on more foreign properties for his family?  Some on bailing out projects by Taib-owned companies?

The Chief Minister appears to think he can get away with not telling people where he has decided to spend this money, but we can be comfortably certain that none of these secret projects involve benefitting any of the impoverished people whose lands he has taken for palm plantations now owned by his family and friends.

The “Government Contribution Towards Approved Agencies Trust Fund”

So what is going on and how has all this money disappeared?

The DAP budget documents provides a detailed analysis.  Firstly, it outlines the extraordinary level of personal control that Taib has assumed over Sarawak’s expenditure.  The septuagenarian personally manages the three main spending departments in the State.  This means that almost every spending decision has to go through him and that no other Minister can do anything without getting his permission.

In particular his three ministries (the Finance Ministry, Planning and Resources Ministry and Chief Ministry) together control 80% of the Development Budget, which alone accounts for around three quarters of all money spent, although it is argued many of the projects would more sensibly belong under different departments.

Secondly, the document explains the secretive system that the Chief Minister has developed for allocating more half this huge sum of money.  Over the past several years he has employed a highly mysterious expenditure category termed the ‘Government Contribution towards Approved Agencies Trust Fund’ into which this money is channelled.   There is no specification as to who these ‘Approved Agencies’ are or which Trust Fund is being referred to and the Government has consistently refused requests for information on the subject!  It could be going to his aunty, or his sister, or cousins, or kids, or secret mistress…… how is anyone supposed to know and what right has he to keep it secret?

Thus, in 2009 RM 1.825 billion (59.3% of the total RM 2.430 billion) is unaccounted for in the Development Budget, according to the DAP calculations.  In 2008 it was RM1.719 billion (60% of the total RM2.865 billion) and in 2007 it was RM1.257 billionn (54.8% of the total RM2.294 billion).  The DAP raise the valid question as to what is the point of carefully auditing 40% of the budget if the remaining 60% is kept secret?

The truth must be told

We can only assume that the ‘Approved Agencies’ must be outfits the Chief Minister would rather we did not know about.  Certainly, if these ‘Approved Agencies’ were doing any good to the people he is supposed to serve, then he would be broadcasting the fact next to a picture of himself in every page of the Borneo Post!

However, he is not and therefore we can safely conclude that they are just doing good for the Taib family and their business cronies, like so many of his other projects.

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  • Justice Required

    Good Day L & G,

    There are heaps and mountains of evidences of wrong doing. In the next state election, get rid of BN and Taib and bring this theif to Court, drag him in from any place where he stay and hide after he lost the power to court. Take back what he had stolen from the Nation, send and let him and his family rot to death in Jail forever.

    If Indonesia can drag anybody from the Top up, why not Malaysia, time will only tell, WHEN ????

    So to all Malaysian and fellows Sarawakian just do it in the next State Election, any more time is a time too long to wait any more longer. Do it by all mean, I will definitely vote them out, how about you?

    We need Justice and Required Justice must be seen and done to the wrong doer, no matter who they are.

  • Tony

    He is a member of "Ali Baba and the 40 thieves". If Ali Baba practises non-disclosure of all expenditures in Petronas, then, he is merely following what his mentor is doing. Nothing wrong ???

  • Karma

    Tajuddin Ramli, Halim Saad, Taib, Ling Leong Sick, Semi Veloo, Ananda Krishna, Mirzan, Mokhzani, Eric Chia, Ting Pek Khing, Vincent Tan and Musa Aman are some of the MONSTERS created by Mahathir to destroy Malaysia.

    May God punish these 'Animals"

  • mslam

    What do the Sarawakians expect when one dictator runs the Sarawak government ? Well, we had voted him for elections after elections and we still do not know. We have ourselves to blame.

    Definitely, money had been leaked and those in the longhouses , kampongs and new villages are just beggars waiting for the "white rajah's " handout. Today we get merry when there are money given to the tuai rumah for celebrations come election but the next day the peoplw will be the servants.

    To get water and electricity supply, the poor people had to beg from these " tuan yang berhormat ".When they like it they give it to you, if not we have to walk miles to the nearest town to get our essential supplies. Apa ini ?

    Are we not fools ? Come election time, we are the tuan and after the elections for 5 long years, we will be the servants to these arraogant YB's and ADUNs of Petrajaya in their gleaming Mercedes , BMWs and luxury cars.

    • manok kampong

      you r totally right.tapi salah siapa milih bala penyangak nya nyadi YBs. anang nganuk bala menteri n yb. kitai mpu k milih c dak….. u asked 4 it. so what? reti ia kitai agik rinduk k c dak nya ngadu ka penyalahnya.

      nya ka buah tadi……election tu ila…..pikir manah2…..

      • http://yahoo. ungga

        u r totaly right Mr Manok Kampung. gua setuju sama lu punya pendapat. so pru kali ini tunjukan la kita ni anti korup,and banyak lagi kesalahan yang taib n the gang dah buat.kalau bole tangkat mereka dan sumbat mereka dalam penjara dan suruh singa makan mereka.baru hati puas.

  • Daniel Chan

    Can we have a legal definition of "corruption" in Malaysia? Which company in the world would have the following positions controlled by 1 person:

    – Executive Chairman of the Board

    – Chairman of the Board Nomination Committee

    – CEO

    – CFO

    – CPO (chief procurement officer)

    – CIO (chief investment officer)

    – Head, Corporate Planning

    + Board Chairmanship of key subsidiaries

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  • Ling

    This is a stark reminder to all those who have been voting BN all these years : you are indirectly party to the abovementioned misdeeds! Stop moaning and shaking your heads in disgust! Do something positive at the next election.

    • naeboo

      ya. plenty of use from who we vote.

      the ballots will still be changed and he will still be announced the landslide winner. or uncontested because the contender decided to withdraw last minute.

      this is the power of being so filthy rich, u can have all the power to bend everyone to ur wishes.

      now, tell me again. who's blind? who's not electing the right ppl to the helm?

  • Lim

    MACC chief once said; he will investigate any report whether it 'ikan bilis' or 'ikan jerung' or he will resign. I think this is one 'ikan jerung' that needs MACC investigation before the next State Election. This is the only point that can bring the 'ikan' and whoever is in the line, down. Let's do it now. Make the report with all the necessary evidences including the ones posted on this updates. This is a challenge to the 'New Chief Minister of Sarawak'.

  • B Independent

    BN is corrupt, everybody knows that, heck we have all known since we were 10.

    PKR are all ex-UMNO people who were corrupt and conned us into believing they are not (hence we Chinese got swindled into voting for them in the last election). Sand Mining activities prove otherwise.

    DAP was our hope for the future, but being presented with real power for the first time in their lives, they just couldn't help themselves, filling their own pockets with construction contracts.

    Fellow Malaysians, I am extremely tired of being USED by both sides (BN and Pakatan) to further their own causes and enrich themselves when I am slaving away at work day after day to make ends meet.

    Join Me. VOTE INDEPENDENT in the next elections.

    Let both these greedy bast***s fight themselves to the death. I will no longer be a pawn their game of Greed.

  • aksadai

    i am tired sick of reading so much allegations of corruption against the thief minister tai palat mamut. however,to-date no action has been taken or being pursued to bring him to face justice. hence,do not only publish these so called evidences of corruption in this blog but send them to macc or anywhere else whereby necessary to drag him down from power mitigating the damage caused. try to get coperation from the mainstream media to join us in this course to justice

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  • Azfar.S

    aksadai: there are only allegations. no solid evidence.

    I smell jealousy.

    • John S

      Azfar.S: One day you will know the fact.

    • KuchingBoy

      Even the blind in Sarawak know bout that.. i sensed stupidity..

    • Iban

      Azfar.s. This is not jealousy in fact this is the truth. U dont have the land & dont care about the forest but we are the real bumiputra in sarawak saw how our forest been destroy with this devil….although that not solid evident but sooner or later the world will know the truth..

  • swakftw

    Taib should redeem himself by redirecting the funds from his foreign earnings overseas and inject it into the Sarawak economy, and voila, Najib's NEM is just a step away to Sarawakians earning a substansial income per year and Taib's bad image diluted (maybe)

    There, killed two birds with one with one BN flag.

    • naeboo

      hahaaha! fat hopes

  • Iban

    Tai mamut announced that he will continue leading sarawak as chief minister cos rakyat still need him. What the hell ..

    He's Taksin no. 2 or Sarawakian people money & only make his cronies rich & rakyat became poor & poor..

    So please spread this info to old fold or rural village,wake up them from this devil…

  • Iban

    MACC will not investigate this report.u know why? cos Tai mamut is BN Leader in Sarawak and if MACC investigate this case, all sarawakian people will not trust BN party anymore and surely Najis will not let this happen. MACC is control by BN and certainly their will allow anything that destroy BN reputation. But if DAP or PKR did the same thing, MACC will investigate that immediately like happen in Penang and Selangor. Believe me MACC will ignore it forever….

    • yo yo

      I am total 99% sokung nuan lak ka, taiko putih mambuk engau duit ya udahnyak lubah lubah parai…he he.see ya next election..

  • Joseph


  • Cynic

    Strange thing is recently I read DAP cant do anything about the construction in Sibu that created hazard for road user. Road leading to Sibu Poliklinik is more dangerous that some places in India. The upper lanang drainage construction is done with no regard for safety. Car plunge in a giant hole coz no one can see it. No one ever question subsidized fuel until it has been reduce by 1-2cts. Subsidized fuel are the reason why we are poor. We are help gangster, tycoon and politician to reduce cost tearing our street, jungle and oil from the ground. Subsidize fishing men but fish got more expensive as they would sell to timber company.

  • Joseph


  • james

    my god i was in india during the 70ies, corrupted though, i think this guy can teach the a few things about corruption.

  • sarawakian

    im sarawakian…so far…the only thing that i can say is, sarawakians are stupid!!!

  • sarawakian

    if we know they did the wrong things, why we still want them to be our B******** leaders….

  • http://none observer








  • Change Sarawak

    As this saying that goes, EVIL BREEDS EVIL.

    • Change Sarawak


  • Change Sarawak

    Sad to say, unless we vote all BN component parties out, this evil will continue in perpetuity.