MACC probing alleged bribery, misappropriation at Sapura Energy

 

MACC chief Azam Baki said the probe papers were opened under the MACC Act 2009 and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

PETALING JAYA: 

The Malaysian Anti-Corruption Commission has opened two investigation papers following information on bribes and misappropriation involving Sapura Energy Berhad.

A MACC source said the investigation is based on an initial probe opened at the end of 2023, which also involves claims made related to the company.

“These two investigation papers are focused on money laundering activities and misappropriation related to claims made around 2018 when the company was known as Sapura Kencana Petroleum Berhad,” said the source.

“In addition to corruption, the investigation will focus on issues related to governance weaknesses and management shortcomings.”

MACC chief commissioner Azam Baki confirmed the probe and said the investigation papers were opened under the MACC Act 2009 and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

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

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

Permodalan Nasional Bhd (PNB), the existing significant shareholder of Sapura Energy, said the funds invested would be exclusively and directly used to repay the oil and gas firm’s local vendors.

It said this was crucial to ensure the financial survival of Malaysian service providers within the O&G ecosystem, pointing out that Sapura Energy had more than 2,000 vendors.

Many of these vendors were small and medium-sized enterprises and made up about 59,000 workers in the O&G sector, it said.

Sapura Energy’s financial trouble started in the mid-2010s due to falling oil prices, leading to annual losses and mounting debt.

In 2023, external auditors Ernst & Young flagged concerns over Sapura Energy’s ability to continue operating. Last month, the company secured creditor approval for a debt restructuring plan, which was cleared by the courts last Thursday. - FMT