Umno thinks banks belong to them or its grandfather’s?

Share to help stimulate good governance, ensure future of people & M’sia

No News Is Bad News

 Facebook image

Umno thinks banks belong to them or its grandfather’s?

KUALA LUMPUR, March 17, 2025: The racial and religious bigoted Umno is getting ridiculous and out of mind.

Former Umno information chief Shahril Hamdan said the Government must push banks for a “haircut” on Sapura Energy Bhd’s loans.

Why don’t you demand the Government to push banks for a “haircut” for all loans taken by individual Malaysians instead?

Do Shahrul and Umno think they own the banks or the banks are his grandfather’s?

The one who should take a cut is Sapura Chief Executive Officer (CEO) Muhammad Zamri Jusoh, who took over from Mohd Anuar Taib on Jan 13, 2025.

Zamri’s salary is believed to be RM200,000 a day when the company is laden with more than RM10 billion in debts!

And, Anuar should be held responsible and accountable for Sapura’s current financial dire straits.

Simply mind-boggling and illogical management and business sense!

And you want the taxpayers to bailout such a company? The banks should instead take bankruptcy proceedings if Sapura fails to settle its debts!

Govt must push banks for ‘haircut’ on Sapura’s loans, says Shahril

Elill Easwaran

-17 Mar 2025, 06:15 PM

The former Umno information chief says the RM1.1 billion injection will not solve the company’s core financial issues.

Former Umno information chief Shahril Hamdan said the government’s support of Sapura Energy Bhd may discourage the banks from accepting a haircut on their loans.

PETALING JAYA: The government must push the banks to accept a “haircut” on Sapura Energy Bhd’s debts and consider an asset-stripping exercise if necessary, says former Umno information chief Shahril Hamdan.

Shahril said the banks need to reduce the debt of the oil and gas (O&G) company by accepting a haircut, or less than what is owed.

“I think we have to push the banks for a haircut, meaning the banks need to reduce the debt. The government has to push for that.

“If an asset-stripping exercise needs to happen, then it must be done,” he said in the latest episode of the Keluar Sekejap podcast.

His comments come after the government injected RM1.1 billion into Sapura Energy, sparking debate over its effectiveness in addressing the company’s financial troubles.

Shahril said the move does not constitute a takeover, contrary to what former prime minister Najib Razak had proposed in 2022 during his debate with Anwar Ibrahim.

“Najib suggested that the government takeover Sapura Energy completely. What’s happening today is not a takeover. It’s a loan.

“RM1.1 billion has been injected into Sapura Energy, but that alone won’t solve the core problem,” he said.

However, he said the government’s support of Sapura Energy may discourage the banks from offering a haircut.

“Sapura Energy probably has around RM10 billion in debt with the banks. In the banking industry, banks have to accept that not all loans will be repaid in full – that’s how the financial system works.

“But, in the case of Sapura Energy, in 2018 Permodalan Nasional Bhd stepped in. Najib then suggested a takeover, and today Anwar is injecting RM1.1 billion.

“So the banks would be wondering … why should we take a haircut when this company is always supported by the government?” he said.

Shahril said Sapura Energy’s business model itself might be flawed, pointing to economy minister Rafizi Ramli’s assertion in 2022 that the company “always chases contracts”.

“To win contracts, they go in at the lowest price, hoping the 10% upfront payment can be used to settle debts. But when the contract amount is too low, margins become very thin, and they end up losing money,” he said.

He recalled that when Anwar was in the opposition, he had called for a forensic audit of Sapura Energy.

“I honestly don’t know if a forensic audit was ever conducted. But if it was, I’m sure it would have revealed the mistakes made by past managements,” he said.

In a Bursa filing last week, Sapura Energy said the finance ministry, through its special purpose vehicle Malaysia Development Holding Sdn Bhd, would be subscribing to its redeemable convertible loan stocks worth RM1.1 billion.

According to The Edge, the funds have been earmarked exclusively for settling Sapura Energy’s arrears with its vendors.

The government’s decision to inject the funds drew accusations that it had bailed out Sapura Energy, a practice Pakatan Harapan leaders had condemned during its time in the opposition.