KOTA KINABALU: Sabah Umno is urging the state government to take immediate action following the closure of Koperasi Serbaguna Sanya Berhad (Kosan), which has left 230 people without jobs.
Sabah Umno information chief Datuk Suhaimi Nasir was commenting on the company ceasing operations after its contract with the Sabah government ended in April 2024.
"The government should clarify the reasons behind this contract termination and ensure transparency in the process. More importantly, efforts should be made to support the workers and help Kosan explore alternatives for continuity," Suhaimi said in a statement on Tuesday (March 25).
He said Sabah Umno urged for immediate intervention to assist affected workers and ensure Kosan's sustainability.
Meanwhile, Tuaran MP Datuk Wilfred Madius Tangau said he met with former workers and learned that the closure affected two factories, one in Tuaran producing school uniforms and another in Papar manufacturing shoes.
"With no new buyers following the contract termination, Kosan ceased operations and issued termination letters on Oct 14, 2024, impacting 134 employees in Tuaran, 69 in Papar, and the rest at its headquarters," he said on a Facebook post on Sunday (March 23), adding that workers also bemoaned the lack of severance pay.
The Labour Department has since stepped in, directing Kosan to provide compensation alongside Social Security Organisation (Perkeso) benefits.
Kosan has said that financial constraints are limiting its ability to provide payouts.
In an effort to find solutions, Tangau said he had engaged current and former Kosan board members.
One key issue raised is why an extraordinary general meeting (EGM) was not held to address the matter.
"The board has cited cost concerns, stating that an EGM would require at least RM100,000, a sum Kosan currently lacks," Tangau said
"One option is for Kosan to liquidate some assets to meet financial obligations, though the final decision rests with Kosan's members," he said.
The state government has yet to announce any measures to address the situation.
