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KOTA KINABALU: A Sabah PPBM leader is puzzled how former Prime Minister Shafie Apdal may have given the go-ahead for a RM 300 million loan from the Sabah Development Bank Sdn Bhd (SDB) to the low-cost airline AirAsia.
The head of Kota Kinabalu’s PPBM division, Faisyal YH Diego, questioned the logic behind the previous state government’s move to approve a loan to an indebted airline.
“As we all know, their creditors are on their heels. The airline was reported to be bogged down with RM65 billion in debt, ”he said in a statement today.
He also challenged Shafie to explain why the Warisan-led government made a 300 million ringgit loan to an indebted airline when the people of Sabah needed it most.
Faisyal said the loan was reportedly approved because AirAsia had promised to carry out a project that could create 100,000 jobs in Sabah.
“Who are they kidding? An airline that laid off 2,400 of its own workers promised to create 100,000 jobs with a 300 million ringgit loan?
And they want to do this in times of crisis? Do you think Sabahans are gullible enough to really believe this?
Shafie had welcomed any investigation into the state bank’s 300 million ringgit loan to AirAsia today, saying that neither he nor anyone in the previous administration had anything to hide about the approved loan. He added that “nothing was hidden” also in the whole process.
“This is because the loan was not approved overnight. Instead, SDB had carried out its own investigation and a thorough risk assessment before deciding to approve the loan.
“AirAsia is a publicly traded company with Bursa Malaysia, therefore approval for any transaction worth RM300 million will only be given after the borrower complies with all loan conditions,” Shafie said in a statement.
Meanwhile, Faisyal said just over a year ago, Shafie had stated that the Sabah money should only be used to develop the state before ordering SDB to stop investing in property development projects on the peninsula.
“He said Sabah needed the money more. Given this recent development with AirAsia, did Shafie consider lending Sabah money to a risky debtor as “developing the state”?
“On the other hand, lending an absurd amount of money in a time of crisis was not only reckless but almost inexplicable,” he said.
