Sabah Finance Ministry says no conflict of interest in SMJE payment of SIP's debts

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Sabah & Sarawak ข่าว

Sabah,Finance Ministry,SMJE

KUALA LUMPUR: The recent weakness seen on the domestic market is likely to extend itself following a hawkish outlook in the US Federal Reserve's recent economic survey.

KOTA KINABALU: Sabah's Finance Ministry refutes claims of a conflict of interest over state-owned SMJ Energy Sdn Bhd's payment of Sabah International Petroleum Sdn Bhd's debts following its acquisition.

The Parti Warisan president raised questions about the debt payment, noting that SMJE's technical adviser is also the SD Bank executive chairman. In clarifying the matter, Mohd Sofian insisted there was"absolutely no element of a conflict of interest in this corporate exercise when SMJE, SIP, and SD Bank are all ultimately owned by the State government of Sabah."

"It is supported by experienced independent directors from both the oil and gas and investment fields to ensure professional management," he said. "It should be noted that SMJE achieved the most competitive rates for the issuance of the first tranche of the sukuk of RM900mil, which was 3.9 times oversubscribed and described by an online business portal as the most successful non-IPO fundraising in 2023," he elaborated.He said SMJE will generate significant revenue through dividends, cash flow from existing operations, and reduced debt servicing costs.

He also pointed out the consistent cash flow from SIP's floating production, storage, and offloading facilities , where he said RM271mil had been channelled to SMJE since the acquisition.

 

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