PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has emphasised that the RM1.1 billion injection into Sapura Energy Bhd is a loan, not a sunk cost, and must be repaid.
“Is this a sunk cost? No.
“This injection serves as loan capital to hopefully enable the new management to operate more effectively, turn a profit, and repay the RM1.1 billion.
“It is not merely a fund injection but a structured loan,” said Anwar, who is also Finance Minister, at the Ministry of Finance (MOF) Joint Assembly today.
He said the decision followed a rigorous process, including a forensic audit by international accounting firm, Ernst & Young, to assess the company’s real challenges.
Anwar said the funds were channelled specifically to vendors who had completed work but had not been paid, rather than directly to Sapura Energy.
“The RM1.1 billion is meant for vendors. Of the roughly 2,000 vendors, 80 per cent are Bumiputera.
“Why should they be penalised? This is their right, and they must be paid.
“If we allow Sapura Energy to go bankrupt, what will happen? It is the only Malaysian oil and gas company capable of operating at this level.
“If it shuts down, all downstream activities and lower-tier operations will be taken over by foreign companies,” he said.
Anwar said the decision to assist Sapura Energy was not about rescuing a large company or its management.
Instead, he stressed that the previous leadership, including the chairman and senior management, must step down and be replaced by a new team.
“We will ensure that all investigations, including those into possible malpractice and abuse of power, continue.
“That is not our concern. What matters is that vendors receive what they are owed,” he said.
Anwar also reaffirmed his long-standing opposition to corporate bailouts.
“I have been one of the toughest critics of bailouts since the beginning of my involvement in government.
“But in this case, we made a careful decision, taking into account the interests of local vendors and ensuring stronger management moving forward.
“Do not claim that Anwar has betrayed trust or become a tool of big business. That is a lie born of ignorance and a refusal to acknowledge the facts.
“When we criticised Sapura Energy three or four years ago, you may recall my debate with Datuk Seri Najib Tun Razak. I said, ‘Do not bail them out’,” he added.
On Tuesday, it was reported that Sapura Energy had secured RM1.1 billion in investment through the subscription of redeemable convertible loan shares (RCLS) at nominal value by Malaysia Development Holdings Sdn Bhd (MDH).
Sapura Energy said it had entered into a conditional financing agreement with MDH, marking a significant step in its financial restructuring and reinforcing its commitment to long-term sustainability.
MDH, a special purpose vehicle of the Minister of Finance (Incorporated), stated that the funds would be used solely to settle liabilities owed by the Sapura Energy Group to Malaysian service providers operating in or supporting the oil and gas sector. – BERNAMA
