Intelligence And Professionalism The Way Forward

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From Walter Sandosham
The politicians are at it again. This time the political football gaining primetime attention in politics is Sapura Energy.
No doubt it is currently in distress due to the vagaries of the oil and gas (O&G) sector which were accentuated with the effects of Covid-19.
It is on record that Permodalan Nasional Berhad (PNB) has a stake in the corporation and a number of our blue chip local lenders have extended credit facilities to Sapura Energy. Therefore, the ramifications of Sapura Energy going belly up is something that needs to be studied before its effects can be appreciated from a holistic viewpoint.
A young semi-retired politician who is now on a comeback trail is arguing against “bailing” out the corporation. Incidentally, his early career was in the O&G sector. Some opine that had he stayed on, he could have been the head honcho in the sector. It was not to be.
Many recall the breaching of the then BAFIA regulations on the premise that “the end justified the means” in releasing confidential banking customer information.
Comeback kids are dangerous. One has to take their views with some scepticism as the conclusions reached, especially on a political hot potato, may be defective as there may be a bigger agenda.
In this melee, and for one to reincarnate oneself in the political arena, the public may be served information that may not be wholesome, with the person choosing to distill only that which is beneficial to him and not the public.
Many recall the information overload post-May 2018, where various assertions were made on how considerable savings had been made on mega projects. In the interim, projects were stopped and many down the supply chain lurched into bankruptcy.
Recently, a politician who failed to get himself elected into the core of his party leadership proclaimed how he had saved “RM44 billion from three legacy Barisan Nasional projects” while in the finance ministry, where he “rejigged and reworked” the contracts which had been allegedly ballooned by the previous administration.
On closer scrutiny, one will appreciate that in a number of instances, specifications were redone. It appears that his political colleagues did not appreciate this gargantuan effort.
Without full disclosure, one can only speculate on its validity. This is where the rakyat is confused and, to a certain extent, misled due to political gimmickry and shadow play for self-interests.
This is where the fate of Sapura Energy lies. Is it economically senseless to lend it a lifeline?
Allowing this to become political fodder will be at the detriment of the nation akin to the irrational decision to scrap GST, an ill-thought political carrot offered to the public in May 2018 for mileage.
The nation cannot afford more political calisthenics and mind mapping. Personal score-settling does not help the nation move forward.
One can only speculate if the mooting of the idea of a lifeline for Sapura Energy by a personality is what has generated such negativity in the air. If it was proposed by anyone else than the said person, will the merits or otherwise be deliberated differently?
It must be noted that in conformance to accounting standards, high levels of provisions have had a consequential effect on the size of losses reported. When the economy improves and projects get under way, generally provisions are written back. These writebacks ultimately have an effect on the quantum of profits in subsequent years.
In objecting to the idea of a lifeline, there is no constructive alternative offered to the billions that PNB-related investment funds and the banks would lose. This, against the backdrop that there is still a healthy global demand for O&G.
To say that the funds could be better utilised for capacity building and granting of education loans is “crowd-pleasing”, and the effects of the many years of the leakages under the New Economic Policy (NEP) speak for itself.
What is needed for the nation is professional competence in looking at different scenarios and plotting the correct direction, either way. Politics should not be in the equation.
We have had enough of half-truths and emotion guiding the thought process. Intelligence and professionalism is the way forward. - FMT
Walter Sandosam is an FMT reader.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.

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