Malaysia

‘Absurd’ to loan millions to AirAsia, says Sabah Bersatu leader

AirAsia plans to use RM300 million to provide 100,000 jobs in the state, but already laid off 24,000 staffers, he says

Updated 5 years ago · Published on 29 Oct 2020 8:04AM

‘Absurd’ to loan millions to AirAsia, says Sabah Bersatu leader
Kota Kinabalu Bersatu chief Faisyal Diego joins his party in denouncing Sabah Development Bank’s RM300 million loan to AirAsia Group. – The Vibes file pic, October 29, 2020

by Jason Santos

KOTA KINABALU – AirAsia Group’s plan to use its RM300 million loan from Sabah Development Bank (SDB) to create 100,000 jobs makes no sense as the carrier just laid off some 24,000 workers. 

Faisyal Diego, who is Bersatu’s Kota Kinabalu division chief, said it is puzzling as to how former chief minister Datuk Seri Mohd Shafie Apdal, who was also state finance minister, allowed the SDB loan to go through. 

“Just over a year ago, Shafie said Sabah money should only be used to develop the state before ordering SDB to stop investing in property development projects in the peninsula. He said Sabah needs the money more,” said Faisyal. 

“Reportedly, the loan was approved under the Warisan-led government. Surely its president (Shafie) cannot claim innocence or ignorance on the matter as SDB is a state-linked company and a loan of such a size would require the consent from the state government. 

“In this case, that consent must come from the chief minister at the time.”  

Faisyal said he believed the loan was approved between May and June at the time when the state was reeling from first and second wave of the Covid-19 pandemic

“The pandemic has already caused so much damage to the local economy and yes, crippling the aviation industry world over. 

“AirAsia is not spared. Already, the airline has been cutting its losses and as we all know, its creditors are hot on their heels.” 

He said the airline had been reported to have a RM65 billion debt and had retrenched 24,000 of its staff members. 

“Do they think Sabahans are gullible enough to actually believe this? Given this recent development, did Shafie consider loaning Sabah money to a risky debtor as ‘developing the state’?” 

Faisyal said RM300 million is “an absurd amount of money” and unwise for the bank to have approved such an amount in a time of crisis.

He added the money would have been well spent in the state, especially for local small businesses, instead of using it to “bail out a troubled airline”. – The Vibes, October 29, 2020  

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