KOTA KINABALU: A decision on the future of cash-strapped Sabah Electricity Sdn Bhd (SESB) will be made within the next four months, Datuk Seri Dr Maximus Ongkili said.
With the state’s key power producer in insolvency, the Energy, Green Technology and Water Minister said his ministry, the Finance Ministry and Tenaga Nasional – which is the main shareholder of SESB – were in discussions on the future of SESB.
He said the company was having cashflow problems and was not bankrupt, as SESB had assets.
“It is insolvent as it can’t meet current expenses, although it has a back-up of about RM8bil in assets.
“Its problem is that it doesn’t have the cash flow,” he told reporters here after announcing that electricity tariff rates for Peninsular Malaysia, Sabah and Labuan would be maintained.
On whether SESB would be returned to the Sabah government, he said: “As a Sabahan, I think it is good to come back to Sabah.”
SESB was taken over by the Federal Government in 1994 before TNB took 82% stakes in the company, while the state retains a share of 18%.