Malaysia

Anwar rubbishes Najib’s Petronas rescue plan for Sapura Energy

Opposition leader also wants forensic audits into troubled firm before any possible bailout

Updated 4 years ago · Published on 12 May 2022 10:31PM

Anwar rubbishes Najib’s Petronas rescue plan for Sapura Energy
Retorting to Datuk Seri Najib Razak’s idea, Datuk Seri Anwar Ibrahim points out that Petronas is also a government-owned entity, and that the company belongs to the people of the country. – SYEDA IMRAN/The Vibes pic, May 12, 2022

by A. Azim Idris

KUALA LUMPUR – Opposition leader Datuk Seri Anwar Ibrahim has rubbished Datuk Seri Najib Razak’s proposal to save the embattled Sapura Energy Bhd via a takeover by national oil and gas company Petronas.

During their televised debate this evening, former prime minister Najib said that the Petronas takeover would not involve “a single sen” from the government’s coffers, and hence it would not burden taxpayers.

Alternatively, he said banks can provide loans to the troubled Sapura Energy, and the injection from the financial institutions would be guaranteed by the government.

Najib used the examples of companies such as AIG and City Group, which were both bailed out by the US government and later went on to record profits.

He said a bailout of Sapura Energy, a state-owned energy company, would benefit Petronas and Malaysian investors, especially those who put their savings in Amanah Saham Nasional Bhd’s (ASNB) ASB fund.

Retorting to Najib’s idea, Anwar pointed out that Petronas is also a government-owned entity, and that the company belongs to the people of the country.

“What do you mean (Malaysians will) not pay a cent if Petronas takes over? Who do you think owns Petronas? This involves billions,” said Anwar, who is PKR president and Pakatan Harapan chairman.

The debate comes following weeks of taunts and online verbal disputes, initially between Najib and PKR vice-president Rafizi Ramli, centred around the struggles and financial woes of Sapura Energy.

The exchange then triggered a challenge from Rafizi to debate the topic publicly, to which Najib agreed, on the condition that Anwar was made part of the debate.

During the debate, Anwar repeatedly insisted on conducting forensic audits on Sapura Energy to trace any misappropriation of funds or mismanagement.

He said that Sapura Energy’s chief executive had received an income of RM83 million in 2016, the same year it recorded massive losses, and RM71.9 million in 2018, although the company was still in the red.

The PKR president also called for a thorough probe into Sapura Energy’s affairs before any bailout or buyout is offered, as it would allow those responsible for the financial mishaps to be made accountable.

He said this had happened with many government-linked companies such as Felda, 1Malaysia Development Berhad, Perwaja and Serba Dinamik, among others. 

Sapura Energy is a public-listed company with large financial backing from state-owned Perbadanan Nasional Bhd (PNB), which holds a 40% stake in the company.

Najib had earlier suggested a government bailout for the company, but Rafizi had opposed the idea, citing it as a burden on taxpayer funds. In early April, Rafizi had also slammed Najib for an alleged RM983 million payout for top Sapura executives between 2009 and 2018, while the latter was prime minister.

Sapura Energy’s financial woes recently came under the spotlight, with the firm’s requirement for further financial aid raising questions on whether PNB, which is also in charge of funds like ASNB’s ASB, would have to pump in further funds.

Sapura Energy posted a net loss of RM8.9 billion for the financial year ending January 31, 2022, compared to a net loss of RM160.87 the year before, Bernama previously reported.

The oil and gas giant has been in troubled waters ever since oil prices crashed in 2014, leading to its market capitalisation shrinking to RM639 million today from a whopping RM28 billion in early 2014. 

A crowd of around 400 arrived at the Malaysia Tourism Centre here for the debate between parliamentary opposition leader Datuk Seri Anwar Ibrahim and former prime minister Datuk Seri Najib Razak. 

Subject to strict security checks, guests comprising government and opposition politicians and fellow party members, academics, journalists and members of the public trickled in from 7pm, finding their seats in the complex’s Tuanku Abdul Razak hall. 

Among the faces present include Umno president Datuk Seri Zahid Hamidi, party secretary-general Datuk Seri Ahmad Maslan, Datuk Seri Mohamed Khaled Nordin, Datuk Seri Tajuddin Abdul Rahman, Datuk Seri Noh Omar and Perak Menteri Besar Datuk Seri Saarani Mohamad. 

From the opposition, attendees include PKR’s Fahmi Fadzil, Sivarasa Rasiah and Adam Adli, along with DAP’s secretary-general Anthony Loke, Nga Kor Ming and Young Syefura Othman. 

Interestingly, chants of “reformasi” rang loud within the hall during the arrivals of both Najib and Anwar. 

Tensions were tangible to the point that the emcee for the night had to remind the crowd that the day’s agenda is for a silent debate, which bars chanting, cheering, and applause. 

The debate began just several minutes after 9pm, with the first topic for the night centred on Sapura Energy. – The Vibes, May 12, 2022

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