SABAH opposition leader Datuk Seri Mohd Shafie Apdal has called for an investigation into SMJ Energy's affairs, citing a possible conflict of interest in the firm's appointment of a technical adviser.
The Warisan president was talking about the state-owned energy firm's acquisition of the the debt-ridden Sabah International Petroleum funded by a sukuk exercise in October.
“The RM900 million raised from the sukuk exercise was meant for the payment of debts owed to Sabah Development Bank, which amounted to around RM1.2 billion.
“But instead of paying the debt gradually, (SMJ Energy) decided to settle it all at once,” he said recently after chairing a Warisan leaders' meeting in Kota Kinabalu.
Shafie said the technical adviser to the SMJ Energy executive board is also the Sabah Development Bank executive chairman.
"Is that not a conflict of interest? Isn’t that using the money you raised to pay yourself?” he said.
Shafie was referring to Datuk Seri Lim Haw Kuang, a well-known figure in the oil and gas industry.
The Sabah government established SMJ Energy Sdn Bhd (formerly known as SMJ Petroleum Sdn Bhd) on December 7, 2021.
The company has assets exceeding RM5 billion, a 50% stake in the Samarang production contract, a 25% share in the Sabah ammonia and urea plant in Sipitang, and 10% ownership in the LNG9 at the Bintulu LNG Complex in Sarawak.
Shafie said checks showed that SMJ Energy has incurred RM7 million in losses to meet its sukuk commitments.
He said the situation was worsened by Sabah Development Bank's financial problems.
As of March 31, several companies in Johor owe the bank RM1.6 billion, and several more in Selangor owe RM1 billion.
At a state assembly sitting in November, Sabah Finance Minister Datuk Seri Masidi Manjun said the state would do everything in its power to recover the billions owed to the state-owned Sabah Development Bank.
Masidi said peninsula-based companies make up 60% of the bank’s loan portfolio, much of which was created during the Barisan Nasional era. – May 29, 2024.
