Sabah Would Consider Taking Over Expensive Baby Sesb If It Is Useful


 
(FILE PHOTO) A technician from Sabah Electricity Sdn Bhd (SESB) examines the electrical box. -NSTP FILEKOTA KINABALU: Sabah government would consider taking over Sabah Electricity Sdn Bhd (SESB) only if it is "growing well and useful", said the state Finance Minister Datuk Seri Masidi Manjun.
Comparing the state utility company to a "very expensive" baby, he said there is a need to conduct due diligence on the company.
"Whether they owe money, whether they (Tenaga Nasional Berhad) are going to sell to us with free debt (SESB), or what?
"The issue of whether it is wise or not (to take it over) does not arise for the time being because we have not taken it over.
"We will (not) take over that very expensive baby unless we feel that that baby doesn't cry too often at night, can grow well and be useful to parents," he told the media after the Finance Ministry night at a hotel here last night.
During the recent state assembly legislative sitting, Sabah Chief Minister Datuk Seri Hajiji Noor had stated that there was a plan to take over SESB within seven years but needed to consider the liabilities and share values of the utility company.
Sabah government currently holds a 17 per cent ownership stake in SESB, while TNB holds the remaining 83 percent.
Last year, SESB chairman Datuk Seri Wilfred Madius Tangau had said that the company is on the verge of insolvency and has been relying on heavy subsidies from the federal government.
Meanwhile, on the mechanism of implementing the state's 40 per cent revenue claim, Masidi said the challenges would be on getting the data and statistics.
Recently, United Progressive Kinabalu Organisation (Upko) president Datuk Ewon Benedick had presented a proposed implementation mechanism on the state rights to Hajiji.
"We have a bit of a problem to get all the data that we require for the purpose of establishing the baseline to calculate the 40 per cent.
"Income tax is one of the revenues, but there are many others," he said. - NST


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