Datuk Seri Masidi Manjun. -filepic
KOTA KINABALU: Sabah has no plans to terminate the previously debt-ridden Sabah International Petroleum (SIP) as its RM1.2bil unpaid loans have been settled and can operate on its own, said state Finance Minister Datuk Seri Masidi Manjun.
He said the RM1.2bil debt incurred due to unpaid loans, not financial leakages.
Masidi said as far as he knew, there were no leaks involved in this matter, and if there was any, it was for the related authorities to investigate.
Mismanagement in the form of unpaid loans totalling RM900mil has since been paid off via sukuk bonds, said Masidi during the question and answer session at the state Legislative Assembly sitting here on Monday (Nov 18).
He said following a restructuring involving fundraising via sukuk bonds, SIP is now debt-free, can run on its own and is a subsidiary of the state-owned SMJ Energy Sdn Bhd (SMJE).
He said although the Sukuk Wakalah programme has been oversubscribed by 3.9 times, SMJE has no plans at the moment to use the balance of the RM10bil sukuk.
“SMJE has since acquired a balanced portfolio and is capable of using internally generated cash to fund its current operations.
“So for the time being, Sabah has no plans to shut down SIP because it is no longer a burden to the state and it can generate positive and stable cash flow in its operations,” he said.
The question was raised by Senallang assemblyman Datuk Seri Mohd Shafie Apdal who also wanted to know how much dividends SIP has paid to the state after it was taken over by SMJE.
On the dividends paid to the state, Masidi said the SMJE had paid RM50mil to the state last year and there will be another payment by year-end.
When responding to questions from Shafie on why the state does not merge all oil and gas related companies such as the Sipitang Oil & Gas Industrial Park (SOGIP) and SIP if it wanted to save on operational costs and other expenses, he said a new company such as SMJE would allow a clean start.
He also stated that the SIP was allowed to continue operations because they have their own expertise in the field of oil and gas, which could benefit the state in the long run if it were managed properly.
