SABAH Finance Minister Datuk Seri Masidi Manjun assured the state assembly there were no signs of financial mismanagement within Sabah International Petroleum (SIP), emphasising its RM1.2 billion debt was tied to unpaid bank loans rather than leakages.
Masidi clarified that the debt, primarily owed to Sabah Development Bank (SDB), was restructured through RM900 million raised via sukuk by SMJ Energy, saving SIP RM60 million annually in interest payments.
Masidi noted that any allegations of mismanagement can be investigated if a formal report was lodged.
“The issue of leakages does not arise. What arose was unpaid debt. If there are leakages, that’s another matter we can investigate.
“If there’s a report, we will direct it to the relevant authorities for investigation,” said Masidi in response to supplementary questions from Datuk Seri Mohd Shafie Apdal (Senallang-Warisan).
Shafie had questioned whether the state would act against those responsible for SIP’s RM1.2 billion debt to SDB.
He likened the move to restructure the debt using RM900 million raised via Islamic bonds to a “bailout,” comparing it to the 1MDB financial scandal.
Earlier Masidi defended the decision, stating that SIP is now debt-free following its acquisition by SMJ Energy.
He added that the government has no plans to shut down SIP, highlighting its improved financial position and the dividends it has paid to the state. – November 18, 2024
