Bandar Kuching MP Dr Kelvin Yii today urged the Sarawak government to reveal the exposure and quantum of possible losses to the state treasury as well as government-linked bodies and corporations following a court ruling allowing the winding-up of energy services group Serba Dinamik Holdings Bhd over debts of some RM5 billion.
Yii, the DAP Youth chief, said the High Court's decision to allow a petition by six financial institutions to wind up Serba Dinamik Holdings and its three companies – Serba Dinamik International Ltd, Serba Dinamik Sdn Bhd and Serba Dinamik Group Bhd – was concerning as the Sarawak government held "significant shares" in the company.
"Based on its Integrated Report 2021, the state financial secretary is the second biggest shareholder with 159.5 million shares and 36 million warrant holdings while state-linked Bintulu Development Authority is the 12th biggest shareholder with 21 million shares and six million warrant holdings," he said.
"That is about 30% of the total shares of the company owned by bodies linked to the Sarawak government."
In a statement, Yii said he had raised the issue in May 2022, but that Deputy Premier Douglas Uggah Embas had answered in the state legislative assembly that the company was "only going through a series of interim or short-term setbacks".
He said Uggah had added that the company was looking into a turnaround and restructuring plan, but had not revealed the total amount invested by the Sarawak government or its possible losses.
"Fast forward less than a year, we see how the High Court has now allowed the winding up of the company and huge debts crippling the company," he said.
Yii urged the state government to reveal the details and quantum of losses suffered, and whether any proactive measures were taken at the start to protect Sarawak's interests.
He also asked about the government's plan to recoup such losses and ensure zero repeat of such scandals.
"On a longer term basis, to ensure greater transparency of all Sarawak investments and even government-linked bodies such as Petros, DBOS and many others, it is vital that all their financial reports are tabled in the legislative assembly annually for greater scruitiny and accountability.
"Good governance is fundamental to ensure that the future of Sarawak and Sarawakians is protected," he said.