Sapura Energy's old top management booted - Anwar

Sapura Energy's old top management booted - Anwar

Qistina Nadia Dzulqarnain
Published: Mar 13, 2025 10:05 AM
Updated: 6:11 PM


Summary

• Anwar Ibrahim says Sapura Energy's old management was booted out as a pre-condition before the government channeled any aid to the company.

• He says a forensic audit has also been carried out while investigations are ongoing.

Editor's note: The headline of this article has been amended to reflect that change in management has been carried out.


The prime minister revealed that there has been a complete overhaul of Sapura Energy Bhd’s top leadership as it was one of Putrajaya’s conditions prior to channeling the RM1.1 billion into the financially strapped company.

Anwar Ibrahim insisted that the cash injection was not intended to be a bailout to “save” the company and its top executives.

“The senior management must all leave - that was our condition. They must be replaced with new leaders,” Anwar told a monthly assembly with Finance Ministry staffers in Putrajaya today.

“Investigations into whether there was any misappropriation, abuse of power or oversteps are being continued, (based on) my checks two or three days ago. (But) that’s none of our business,” he added.

In a statement released after his speech, Anwar said that in the restructuring exercise, the previous main shareholders were no longer involved in the management of Sapura Energy, and that a professional new management team had replaced it.

Though not named, a major shareholder in the company was its former CEO Shahril Shamsuddin - who retired in 2021.

Ex-Sapura Energy CEO Shahril Shamsuddin


His brother, Shahriman Shamsuddin is still on the board of directors.

Tough decision

In his speech, Anwar referenced his debate three years ago with former prime minister Najib Abdul Razak, during which the then-opposition leader had criticised a proposal for the government to bail out the debt-addled firm.

“During the debate, I said no to a bailout (as) its management was still there, earning millions of ringgit (while) there was no forensic audit.

“So, we brought in (external auditors) Ernst & Young. All rules were transparently carried out before we made this decision (to inject RM1.1 billion),” Anwar said, noting that the call was not easy as he has been a strong opponent of bailouts.

The premier added in his statement later that the findings of such due diligence will be shared with the relevant enforcement agencies, including the Securities Commission, to determine whether action is required against any parties.

He said his firm stance against the act can be traced back to his experience in the late 1990s when he had opposed the bailout of a shipping company “linked to a prime minister’s child”.

“(Back then, the government was) bailing out people who lived lavishly with every convenience, but managed their companies incompetently and caused massive losses, which the government shouldered without any of the conditions we have set now,” Anwar added.

‘Consider it a loan’

Stressing that the funding from Malaysia Development Holding Sdn Bhd (MDH) is intended to pay off Sapura Energy’s dues to around 2,000 vendors, Anwar said the injection can be considered a loan to be repaid by the oil and gas company’s future management.

“Will this funding be ‘burned’ (hangus) funds? No, (because) the injection will be made into capital for a loan so that (Sapura Energy’s) new leadership can hopefully manage it better (by) generating a profit and repaying the RM1.1 billion injection,” he explained.

Sapura Energy landed into trouble around the mid-2010s when tumbling oil prices caused the company to start racking up losses and debt.

By 2019, the company's problems had grown to the point that it was starting to record losses every year.