Dr M Supports Govt S Not Mahathir Era Bailout Aid To Sapura Energy

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The Madani government heavily stressed yesterday that the financial lifeline given to Sapura Energy Berhad was a "strategic investment" and not a bailout like the ones given when Dr Mahathir Mohamad was in power.
Semantics aside, and despite being demonised, Mahathir was supportive of the government's decision to inject RM1.1 billion into Sapura Energy to pay off its debts.
"Maybe it is a 'bailout' but (big) companies need to be bailed out, the failure of such companies has an impact, not just to its owners but also the workers.
"So we have to think about their (workers) problems too," he was quoted as saying by Sinar Harian last night.
However, he stressed that the government should do due diligence and ensure that the money is not misused.
Mahathir's son Mokhzani was a major investor in Sapura Energy from back when it was called SapuraKenchana.
Investor Mokhzani MahathirHowever, Mokhzani sold off his stake in the company in 2017 - at a time when Sapura Energy was struggling but not yet in crisis.
Troubled waters
Sapura Energy landed into trouble around the mid-2010s when tumbling oil prices caused the company to start racking up losses and debt.
By 2019, the company's problems had grown to the point that it was starting to record losses every year.
In 2022 - after three subsidiaries were served winding up petitions - former prime minister Najib Abdul Razak suggested that Petronas bail out Sapura Energy.
PM Anwar Ibrahim and ex-premier Najib Abdul Razak had touched on the Sapura Energy bailout during a debate in 2022Then opposition leader Anwar Ibrahim had opposed the idea, saying that a forensic audit was needed before any talks about a bailout could be initiated.
Mahathir had likewise opposed a bailout at the time, saying efforts should be made to pare down Sapura Energy's debts instead.
RM1.1b investment
On Tuesday, Sapura Energy informed Bursa Malaysia that it had received RM1.1 billion as an investment from Malaysia Development Holding Sdn Bhd (MDH) - a special purpose vehicle under the Minister of Finance (Incorporated).
The investment is to be exclusively used to pay off the oil and gas company's debts to its 2,000 vendors.
Communications Minister Fahmi FadzilGovernment spokesperson Fahmi Fadzil had used the investment condition to differentiate the lifeline from past government bailouts.
“It’s not a bailout like the ones that happened during (Mahathir’s) era. That was a real bailout (and) this is not.
“This is Madani, not Mahathir,” he quipped yesterday. - Mkini

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