KUALA LUMPUR — Sapura Energy Bhd (SEB) has a new management in place as part of the terms of its RM1.1 billion capital injection from the government, Prime Minister Datuk Seri Anwar Ibrahim said today in dismissing claims Putrajaya was bailing out those responsible for the company’s financial woes.
He also kept open the possibility of legal action against those responsible, if the findings of a forensic audit and other due diligence reveal any grounds for action.
“It is very important to emphasise that this capital injection does not benefit SEB shareholders or management at all. The previous shareholders are no longer in the management of SEB.
“New professional management has been appointed to implement SEB’s restructuring,” Anwar said in a statement.
Anwar who is also the finance minister, said the forensic audit and additional due diligence had been conducted on SEB “as a prerequisite” to the decision on the RM1.1 billion injection.
“The findings of this due diligence will be shared with the relevant enforcement agencies such as the Securities Commission, to determine whether action needs to be taken against any party,” he added.
He then stressed that the capital injection is specifically for the payment of SEB’s debts with about 2,000 vendors who local oil and gas small and medium enterprises (SMEs).
“The majority of them are Bumiputera companies. This capital injection is part of SEB’s restructuring efforts and is to help and save local workers who have done work but not been paid for their services for a long time. It is important to save the local oil and gas industry ecosystem,” Anwar said in his statement.
The prime minister also spoke on the same points to Finance Ministry staff at their monthly assembly this morning.
“This is not a sunk cost but an injection implemented as a loan so that the new management can improve things and repay the loan,” he told ministry staff.
“Should we condemn the 2,000 SMEs that completed their work but did not receive their pay? So this injection is for them,” Anwar said, adding that if these oil and gas services SMEs were allowed to go bankrupt, the sector would be given over to foreign players.
Anwar also told ministry staff the government specifically ordered for SEB to be led by a new management team, and remained committed to continuing investigations to uncover any mismanagement.
“So, it’s not a bailout of top management, they all have to leave and be replaced by new management,” he said.
Yesterday, government investment arm Permodalan Nasional Bhd (PNB) issued a factsheet to clarify the RM1.1 billion capital injection to the troubled SEB amidst accusations of a bailout.
PNB said the injection was a “repayable lifeline” for Malaysia’ oil and gas ecosystem, also stressing that the “funds are directly and only used to repay local vendors, without benefiting any existing SEB shareholders or financial creditors”. – March 13, 2025