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State minister: RM2.2b owed to Sabah Development Bank by GLCs as of Q3 2023

Publish date: Thu, 30 Nov 2023, 09:21 AM

KOTA KINABALU, Nov 29 — Some RM2.2 billion in outstanding debt was owed by government linked companies (GLCs) to Sabah Development Bank (SDBank) as of the third quarter of the year, the Sabah state assembly was told today.

Sabah Finance Minister Datuk Seri Masidi Manjun said RM1.2 billion is the remaining debt owed by Sabah International Petroleum (SIP), which has been taken over by SMJ Energy Sdn Bhd, and RM700 million has been settled in the first phase.

“SIP had no ability to repay the loan and eventually was unable to operate,” he said in reply to a query from Datuk Seri Mohd Shafie Apdal (Warisan-Senallang) who wanted to know how much is GLCs’ unpaid debt to SDBank, including SIP’s, and why the state government has to shoulder the burden.

Masidi said it is the state government’s responsibility to ensure SDBank remains relevant through a comprehensive restructuring.

Among the efforts to strengthen corporate governance is the full ownership of SDBank under the Chief Minister (Incorporation) Ordinance and the appointment of professional board members and management to enhance SDBank’s structure and management.

He said if SDBank were not restructured and could not operate, it would have a negative impact on the status and credibility of the state. — Bernama

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