One of PM Anwar Ibrahim and some Ministers FLAWS - We never get clear answers, and the issue of 'BAIL OUT' of GLCs is a major concern.
In Debt, but high salary for CEO and others. No profits, but how come dividends? How much peoples' monies recovered from these 'Bail Outs' - Are 'bail outs' really FREE MONEY for the undeserving?
Parliament fails to Monitor these GLCs - We need an independent, transparent Royal Commission of Inquiry - which will inquire fast, be opemn to the public and issue a PUBLIC REPORT fast - no delays like the Wang Kelian RCI.
Sapura is not wholly owned by the Government, so a 'BAIL OUT' benefits other shareholders too (irrespective that they are foreign or local shareholders) - is it right for such individuals to benefit from government 'Bail Outs' - so many past 'bail outs' benefit OTHERS, including maybe foreigners????
ROYAL COMMISSION OF INQUIRY for Sapura Energy Berhad 'bail out'?
WHY? It is OUR money, and the question is whether it was being spent correctly?
Paying Debtors is NOT an investment? Had Sapura been declaring/paying out DIVIDENDS when it was indebted, when Dividends are usually division of annual profits amongst shareholders? Why is the CEO or upper management being paid so high when they failed to generate profits?
Sharil[CEO], who took home RM55 million in bonus payments and RM16.56 million in salary and other emoluments in FY2018, has come under the scrutiny of shareholders, including the Employees Provident Fund (EPF). Excluding an intellectual property rights payment of RM43.4 million, Shahril’s compensation amounted to RM71.92 million in FY2018, when Sapura Energy incurred a net loss of RM2.5 billion on revenue of RM5.89 billion. The loss was mainly attributed to a RM2.1 billion impairment provision for the company’s drilling segment. - Edge, 2/8/2018
Shahril has denied the allegations, with his lawyers stating that it was publicly known that his total remuneration between 2013 and 2021 was RM486.25 million..- FMT,14/4/2023
If 'total remuneration between 2013 and 2021 was
RM486.25 million' - That means, by admission, CEO Shahril gets about RM60 million annually as remuneration, about RM5 million per month? Is this not TOO MUCH - when our Minimum Wage is RM1,700, and the Prime Minister of Malaysia only gets only RM22,826.65 PLUS RM16,000[not including other allowances]
Section 6 Remuneration of Members of the Administration (MEMBERS OF PARLIAMENT (REMUNERATION) ACT 1980
(1) The remuneration of the Members of the Administration shall consist of- (a) in the case of the Prime Minister, a monthly salary of twenty-two thousand eight hundred and twenty-six ringgit and sixty-five sen
Should not the salary of Government owned or linked entities CEOs or upper management be CAPPED at maybe RM17,000 Plus a certain percentage of annual profits as annual BONUS. Thus, if they make more profits, the higher the Bonus, and if the entity suffers losses, no BONUS. This will motivate them to do a better job - so, does a monthly renumeration of RM5 million make any sense???
Should all GLCs be subject to annual audits by the AUDITOR GENERAL - who will also highlight wrong decisions/actions. Every year, the Auditor's report highlights wrongdoings - but sadly, there seems to be no action taken that we know of.
The other problem with GLCs is the 'politically appointed Directors and Chairman', who sometimes simply do not understand their duty and responsibility. How come the 1MDB and/or SRC Directors and CEO yet to be charged in court for the losses suffered by the 2 companies - The 'policy' of free from civil and/or criminal liability for Directors, and just the receipt of allowance and benefits must change...??? Should the Minister who appointed Directors be made personally liable for their performance, failures?
Sapura Energy Bhd 'SCANDAL' - and questionable 'bail out' or 'investment' of RM1.1 Billion is a lot of money.
Worse, when PM/Finance Minister says it was to pay of the company's debts to its vendors - but have the debts even been proven yet. Has the vendors even commenced a legal suit and got a court judgment yet - which will then make it proven debts.
Then Anwar justifies the repayment of the debt because the majority of the vendors are Bumiputra companies, but Zaid Ibrahim criticizes this .
Former law minister Zaid Ibrahim has urged Prime Minister Anwar Ibrahim to quit using the bumiputera community as a tool to justify foolish decisions.
This came following the premier’s move to inject RM1.1 billion into debt-ridden Sapura Energy Bhd, justifying it by saying bumiputera vendors would be affected if it was not done.“Stop using bumiputera as a tool. Stop being racist. Being stupid is bad enough.“Whenever bumiputera leaders seek to justify a stupid decision, they always use bumiputera as the reason for it. It's ridiculous.“Do you mean the prime minister will not invest in Sapura if the vendors are Chinese? So, does it become strategic only if bumiputera are involved?” Zaid asked on Facebook today. - Malaysiakini, 13/3/2025
Is Sapura Energy a wholly government owned company? It seems not, just that it is
Malaysia Development Holding Sdn Bhd’s (MDH) RM1.1 billion subscription of Sapura Energy Bhd’s redeemable convertible loan stocks is a strategic investment and not a bailout, Communications Minister Datuk Fahmi Fadzil said today.The MDH is a special purpose vehicle of the Finance Ministry...Fahmi said Sapura Energy was also required to earmark the funds solely for settlement of liabilities to over 2,000 local vendors, of which 80 per cent were Bumiputera enterprises.
Prime Minister Datuk Seri Anwar Ibrahim had said that the RM1.1bil capital injection into Sapura Energy was not a bailout but was specifically for paying the company’s debts to vendors.
What exactly is the STATUS of Sapura Energy? It was under PN17 Financial Distress
PN17 stands for Practice Note 17/2005 and is issued by Bursa Malaysia; relating to companies that are in financial distress. Companies that fall within the definition of PN17 will need to submit their proposal to the Approving Authority to restructure and revive the company in order to maintain the listing status.
The company said last month it had managed to secure creditors’ approval for its proposed debt restructuring scheme that would include its 22 subsidiaries as it aims to repay the RM10.8 billion owed to nine lenders of its multi-currency financing facilities, and RM1.5 billion in outstanding trade creditor payments.
What is 'debt restructuring scheme' - well, it is an agreement by majority creditors, requiring a certain number/percentage of creditors approval - maybe like 80% but not 100% just like what is proposed for the Urban Renewal Act, where an agreement by a majority will affect the minority that did not agree.
Sapura Energy Bhd (KL:SAPNRG) said the Kuala Lumpur High Court has approved its debt restructuring plan....Under the restructuring scheme, preferred unsecured creditors will receive full cash payments within 90 days after the restructuring effective date, expected to be in August 2025, subject to the fulfilment of certain conditions.Meanwhile, certain Malaysian O&G sector service firms classified as ecosystem creditors will have their claims settled using funds from a white knight investor.For unsecured creditors, their claims will be settled through a combination of financial instruments, including debt, sustainable debts, redeemable convertible unsecured Islamic debt securities and new ordinary shares. About 7% of the unsecured debt will be permanently waived.
Should not Finance Minister Anwar Ibrahim explain this to the people, everyone including all them PKR members deemed not smart or 'capable enough' to elect the PKR top leaders - and thus their right revoked, and only 'smart' delegates get to choose top PKR leaders...
In a case, I know, Company X was owed RM10 million, but after the 'debt restructuring plan', which requires the consent of not all, but just a majority of the creditors, the end result was that Company X would just receive 10% or RM1million of debt due and payable. That was most unjust, as Company X, who had bank loans could not settle its debts and ended up being wound-up. Director who stood guarantee for Company X also ended up bankrupt...so, great injustice. So, will the VENDORS of Sapura receive all that is owed, or just a percentage?
So, what really was the amount that Sapura Energy owed its majority Bumiputra Vendors before the 'debt restructuring scheme' or agreement? After that agreement, it was said that the debt now to other creditors became RM1.5 Billion, so was the original debt more, maybe RM10.5 billion. Most likely, these vendors would be that other 'outstanding trade creditor'.
So, that means that even if PM Anwar Ibrahim used the RM1.1 billion to pay these Bumiputra and non-Bumiputra vendors, it may just a repayment of a small part of DEBT really owed by Sapura to them, because of that subsequent unjust 'debt restructuring agreement or scheme' - Here is one thing that PM Anwar must really clarify?
Should the Government of Malaysia use Malaysian's monies to settle debts owed by Sapura to its Vendors?
Earlier, in Anwar's premiership, it also used about RM8.3.Billion to write of FELDA Settler's Debts?? 'The Malaysian government is writing off RM8.3 billion (S$2.4 billion) of debts held by land settlers in Felda plantations, as Prime Minister Anwar Ibrahim moves to boost support among rural Malays ahead of the Aug 12 elections involving six states. [Straits Times, 18/11/2024] Why only Felda Settler's Debts, when it will be better to write off DEBTS of Malaysian Hardcore Poor and B40? Can the government use OUR MONEY for such purposes, to get support for upcoming elections?
How did the FELDA Settlers end up with such high debts to FELDA? Most other rubber/oil palm smallholders do well - why was FELDA settlers, who are plantation smallholders, end up with such HIGH Debts to FELDA? Was it because of FELDA's wrongdoings - no investigations, no identification of wrongdoers/crime perpetrators, no action against the wrongdoers - just pumped in money???
Now, the same is happening to Sapura -- HOW many companies in Malaysia did the government 'bail-out' or provide additional 'investment"? How much such monies did the Malaysian government recover back? How much did it LOSE? Blame will definitely lie on the Prime Minister, the Finance Minister and the government of the day...or 'do we sweep under the carpet such wrongs that saw Malaysians lose so much of our money' ?
Should not the GOVERNMENT be using government monies to settle debts of the Hard Core Poor like in the case of - Hardcore Poor - Threatened With Door Removal by Local Council If Rent not Paid? Embarassing how Anwar's government treats the very poor? Anthony Loke's Constituency? Minister Nga - is this how Local Council behaves?
How the Malaysian Government USES the peoples' money(not Anwar's or PH's money) is important. Too many 'BAIL OUTS' - and too little explanation of how the debt came to be. Those responsible(including the Finance Minister and/or other Ministers, who also 'politically appoint Directors and/or CEOs) is never revealed. MONEY pumped in but problems that caused the LOSS not dealt with - and the persons responsible NOT PENALISED] WHY?WHY?
A RCI can also make recommendations on who should be penalized in criminal courts, or civil courts? Who is the MINISTER who picked bad Directors and Management that caused such losses foolishly...??
PM Anwar must STOP spending monies as he pleases - it is OUR MONEY. Government continues to borrow more - increasing our Malaysian RM1.5 Trillion Debt. In 2023, Anwar as Finance Minister failed to stop DEBT increase, only reduced it by about RM90 plus billion in 2023, in 2024, how much more... If Anwar Ibrahim continues to be Prime Minister and Finance Minister, he would just leave Malaysia in more debt than when he came in as Prime Minister - thus, he would have FAILED...FAILED.
Old BN Regime caused Malaysia to end up with so much UNPAID DEBT - If Anwar just succeeds in increasing Malaysia's DEBT, he is a FAILURE. Only if Anwar can reduce DEBT will he be considered a better PM and a better government...
Felda's debt issue: Settlers' debt only written off in financial year ending 2022, says Anwar
The unity government has followed through on its commitment to address the financial issues, amounting to billions of ringgit, faced by the Federal Land Development Authority (Felda).
Prime Minister Datuk Seri Anwar Ibrahim claimed Felda did not receive any funds under the 2021 and 2022 budgets by the Perikatan Nasional (PN) and Barisan Nasional-Perikatan Nasional (BN-PN) government, respectively.
He claimed whilst there was an agreement to allocate an annual grant of RM990 million to Felda for a period of 10 years, it was however not fully implemented by both previous federal governments.
He asserted the settler's loans remained in Felda's financial books until on or after the formation of the unity government and were only written off by Felda in the financial year ending 2022.
Who owns SAPURA? From media reports, it seems PNB owns 40%, ...
‘No free lunches’: Fahmi says government funds for Sapura Energy a strategic investment, not a bailout
PUTRAJAYA, March 12 — Malaysia Development Holding Sdn Bhd’s (MDH) RM1.1 billion subscription of Sapura Energy Bhd’s redeemable convertible loan stocks is a strategic investment and not a bailout, Communications Minister Datuk Fahmi Fadzil said today.
The MDH is a special purpose vehicle of the Finance Ministry.
Fahmi said Sapura Energy was also required to earmark the funds solely for settlement of liabilities to over 2,000 local vendors, of which 80 per cent were Bumiputera enterprises.
Fahmi said the matter was deliberated at the Cabinet meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim earlier today.
“In the case of Sapura Energy, this is not a bailout because it (the investment) comes with specific conditions.
“Sapura will also release a statement later today to clarify the matter,” he told reporters at a press conference at the Ministry of Communications, here, today.
Asked on the Madani government’s stance on bailouts, Fahmi said: “We will look on a case-to-case basis but based on the principles of Madani government, which is there are no free lunches.”
In a filing with Bursa Malaysia on Tuesday, Sapura Energy announced that MDH will be subscribing to its redeemable convertible loan stocks worth RM1.1 billion on certain conditions.
Expressing its gratitude to the government, the integrated oil and gas services provider said the funding marked a crucial step in restoring the financial stability of local vendors within the oil and gas ecosystem. - Malay Mail, 12/3/2025
PM Anwar: RM1b Sapura injection to pay what’s owed to Bumi vendors, not bail out execs
PUTRAJAYA, March 13 — Prime Minister Datuk Seri Anwar Ibrahim today defended the move to inject RM1.1 billion into Sapura Energy, saying this is to pay what is owed to mostly Bumiputera vendors rather than save the troubled oil-and-gas firm’s top executives.
The Malaysia Development Holding Sdn Bhd’s (MDH) infusion of funds into the publicly listed Sapura as led to perception of a government bailout of the firm, which Anwar previously rejected while in the Opposition.
Speaking at the Ministry of Finance's monthly assembly here, Anwar said channelling money into Sapura Energy “was not an easy decision”, but was necessary to prevent a financial ripple effect in the oil and gas supply chain.
Anwar also noted that the infusion was through MDH’s subscription of Sapura’s redeemable convertible loan stocks.
“Will this money be burnt just like that? No. This injection is meant as a capital loan for the new management, with the hope it would manage the company better and make profits so it could then repay this RM1.1 billion injection,” said Anwar, who is also the finance minister.
“When we criticised Sapura Energy years ago what did I say? I said don’t bail out because the same management is still there, their salaries are millions of ringgit. Then I asked where the forensic audit was. Now we brought in EY and put in a proper and transparent process before the decision (to inject money) was made,” he added.
Sapura Energy, a publicly listed firm now under PN17 status, has faced financial issues as since the turn of the decade.
The company said last month it had managed to secure creditors’ approval for its proposed debt restructuring scheme that would include its 22 subsidiaries as it aims to repay the RM10.8 billion owed to nine lenders of its multi-currency financing facilities, and RM1.5 billion in outstanding trade creditor payments.
In a Bursa filing Tuesday, Sapura Energy said the finance ministry, via its special purpose vehicle MDH, would be subscribing to its redeemable convertible loan stocks worth RM1.1 billion.
The latest round of fund injection and court-approved debt restructuring plan will be a part of Sapura Energy’s regularisation plan, as the company works to exit its PN17 status and reposition itself for long-term growth.
“I’d like to tell you that this decision was not at all easy,” Anwar said about the funding as he addressed MoF staff this morning.
“I was among those who vehemently opposed bailing out large companies,” he added.
“Back in 1997/1998, I was those who opposed the bail out of a shipping company linked to the son of a prime minister, so, I do have experience in this, because we were bailing out people who live lavishly yet manage a company incompetently.”
Rafizi secures discovery of ex-Sapura Energy CEO’s salary documentation
Court rules that Shahril Shamsuddin’s salary and allowances between 2009 and 2021 are crucial for Rafizi Ramli’s defence to the suit.
Rafizi’s lawyer Navpreet Singh said judge Lailatul Zuraida Harron granted the application during a case management today.
The court ruled that the documents sought by Rafizi were relevant to the issues for determination in a defamation case filed by Shahril against Rafizi, Navpreet said.
Rafizi, who is the economy minister, filed an application last year seeking to secure documents from Sapura Energy on Shahril’s remuneration and allowances from 2009 to 2021.
He said that the documents are necessary for his defence.
Shahril filed the lawsuit in May 2022 claiming that Rafizi had made libellous statements concerning his remuneration.
Shahril had taken offence to a claim by Rafizi that Sapura Energy’s majority shareholders, led by Shahril, had taken out a total of RM1.33 billion, made up of RM1.1 billion in salaries and the remainder in other payments and dividends.
Rafizi had claimed that this was triple the sum of RM440 million which the company paid out to the remaining shareholders in dividends.
Shahril has denied the allegations, with his lawyers stating that it was publicly known that his total remuneration between 2013 and 2021 was RM486.25 million.- FMT,14/4/2023
KUALA LUMPUR (March 6): Sapura Energy Bhd (KL:SAPNRG) said the Kuala Lumpur High Court has approved its debt restructuring plan.
The court granted an order to approve the oil and gas (O&G) services outfit’s schemes of arrangement, which will take effect once a copy of the court order is lodged with the Companies Commission Malaysia (SSM), Sapura Energy said in a bourse filing on Thursday.
This follows creditors’ approval of its debt restructuring plan earlier in February after 52 court-convened meetings.
In conjunction with the order approving the debt restructuring plan, Sapura Energy said the court also granted an order preventing any legal action being initiated against the company until the restructuring effective date.
“The scheme companies have instructed their respective company secretaries to proceed with the lodgement of the court order with SSM. The company will make an announcement upon the lodgement of the court order with SSM,” it added.
Under the restructuring scheme, preferred unsecured creditors will receive full cash payments within 90 days after the restructuring effective date, expected to be in August 2025, subject to the fulfilment of certain conditions.
Meanwhile, certain Malaysian O&G sector service firms classified as ecosystem creditors will have their claims settled using funds from a white knight investor.
For unsecured creditors, their claims will be settled through a combination of financial instruments, including debt, sustainable debts, redeemable convertible unsecured Islamic debt securities and new ordinary shares. About 7% of the unsecured debt will be permanently waived.
Shares in Sapura Energy ended unchanged at 3.5 sen on Thursday, valuing the company at RM562.76 million.
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