Sabah Finance Ministry says no conflict of interest in SMJE payment of SIP's debts

KOTA KINABALU: Sabah's Finance Ministry refutes claims of a conflict of interest over state-owned SMJ Energy Sdn Bhd's (SMJE) payment of Sabah International Petroleum Sdn Bhd's (SIP) debts following its acquisition.

The Ministry's permanent secretary, Datuk Mohd Sofian Alfian Nair, explained that the state-supported corporate exercise not only reduced the high interest costs of SIP's legacy debts but also strategically re-capitalised Sabah Development Bank Bhd (SD Bank) by redeeming SIP's debts owed to the bank.