Kuala Lumpur: Prime Minister Datuk Seri Anwar Ibrahim has underscored that the RM1.1 billion injection into Sapura Energy Bhd (SEB) is structured as a loan, intended to be repaid, rather than a sunk cost. Anwar, who also serves as Finance Minister, addressed the topic at the Ministry of Finance Joint Assembly, emphasizing that the funds are meant to facilitate the company’s operations and eventual profitability, thereby enabling repayment of the loan.
According to BERNAMA News Agency, Anwar clarified that the decision to inject funds followed a thorough evaluation process, including a forensic audit conducted by Ernst and Young to examine the company’s core challenges. The funds, he noted, were allocated directly to vendors who had completed work with Sapura Energy but had not been compensated, rather than being given to the company itself.
Anwar further elaborated that the primary goal of the RM1.1 billion injection is to pay the vendors, many of whom are Bumiputera, comprising approximately 80% of the 2,000 vendors involved. He argued that these vendors should not suffer due to the financial troubles of Sapura Energy, highlighting the company’s unique role in Malaysia’s oil and gas industry.
The Prime Minister made it clear that the intervention is not about saving the company’s management but rather about upholding the rights of vendors. He stressed that the previous leadership must be replaced to ensure better governance, and investigations into any potential malpractice will continue.
Reiterating his stance against corporate bailouts, Anwar stated that the decision was made with careful consideration of the local vendors’ interests and the need for improved management. He dismissed claims that he had shifted his position on bailouts, referring to past criticisms of such measures, including in debates with former Prime Minister Datuk Seri Najib Tun Razak.
On Tuesday, reports indicated that Sapura Energy had secured the RM1.1 billion investment through redeemable convertible loan shares (RCLS) subscribed by Malaysia Development Holding Sdn Bhd (MDH). This move is seen as a crucial step in Sapura Energy’s financial restructuring, with MDH specifying that the funds will be used to settle liabilities to Malaysian service providers in the oil and gas sector.