Rafizi’s day in court will put Sapura Energy under scrutiny

 

Former Sapura Energy Berhad CEO Shahril Shamsuddin, upset with remarks by Rafizi Ramli, has taken the former Pandan MP to court.

Rafizi had issued the statements because he disagreed with Najib Razak’s suggestion on March 21 that the government inject funds to save Sapura Energy.

He said he would defend his remarks about Shahril’s remuneration in court, adding that what he had said was to “protect public interest”.

Many Malaysians would welcome the trial so that Sapura’s alleged mismanagement will be put to public scrutiny. They want to know if the alleged excesses of its former CEO and the failure of the board and managers to save the company from near bankruptcy are true.

The oil and gas company had achieved an unprecedented rise since its founding in 2012, but by 2015, trouble was brewing.

Attempts to turn the company around were made by corporate board members, who previously worked in other big-name companies like Petronas Carigali and Royal Dutch Shell. They were unsuccessful.

In 2019, Sapura was given a cash injection of RM2.68 billion by Permodalan Nasional Berhad (PNB) in return for a 40% stake in the firm. Why should the rakyat agree to yet another cash injection? Why waste more good money?

Despite the continuing resurgence of crude oil prices (after the dip in prices over five years ago), and PNB’s help only three years ago, why is Sapura’s performance still bad?

Najib wants to save Sapura from bankruptcy, but who will help the rakyat if the government has no money? We are aware that the country is heavily in debt. Why should a nation in debt help out rich people and their ailing companies, so they do not go broke?

Many Malaysians are out of jobs, and businesses have been forced to shut down. Many struggle just to put food on the table, with some holding two or three jobs to earn enough. To survive, many have used up their life savings and are now digging deep into their EPF reserves.

With the trial – if it takes place – the rakyat will be able to know how public listed companies are run. They will be able to find out about the wastage, the exorbitant salaries and perks, the poor decision making, the choice of investments, and the losses incurred.

Last year, The Edge reported that speculation was rife that Sapura’s shareholders were furious with Shahril’s remuneration package. His take-home pay was said to be RM84.24 million in 2017 and RM71.92 million in 2018.

In March 2021, Anuar Taib, who has about 30 years’ experience in the oil and gas industry in Sarawak Shell Bhd, was appointed Sapura Energy’s CEO to try and save the company.

One year later, despite the cash injections, the change in members of the board, a new management team, refinancing, and selective bidding for jobs, he warned that the group may have to make tough calls if it is unable to reach workable compromises with its customers to recover or limit losses.

If the government agrees to save Sapura with public funds, the rakyat may wonder why the company should be bailed out yet again. It is not as if it has not been helped before; PNB already gave it a cash injection in 2019.

Perhaps the trial – if it takes place – will throw light on what really went wrong. - FMT

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.