Ongkili denies using ‘bankruptcy’ in statement on SESB

KOTA KINABALU: Minister of Energy, Green Technology and Water (KeTTHA) Datuk Seri Panglima Dr Maximus Johnity Ongkili has denied using the word “bankruptcy” in his recent statement regarding the status of Sabah Electricity Sdn Bhd (SESB).

He said all parties should know the difference between the words ‘insolvent’ and ‘bankrupt’ because the words he used in his statement was insolvent.

“I issued the comment based on a response to a statement issued by chairman and chief executive officer of Tenaga Nasional Berhad (TNB) in an annual general meeting with stakeholders held recently to discuss the future fate of SESB.

“I did not issue that statement at will but as a regulator I had to respond,” he told this to reporters at a press conference here yesterday.

Ongkili said it was true that the talks were held between TNB, the Ministry of Finance and the KeTTHA and until now there was no conclusion yet.

“I explained the matter but I did not use the word bankrupt. We must understand the difference between the two words. Insolvent here I mean SESB cannot make payments such as loan payments and immediate needs.

“SESB has assets worth RM8 billion but it has cash flow problems, therefore, cannot afford to spend on immediate needs,” he said.

“Bankruptcy means no cash and assets as a whole, but SESB had high asset value.”

He said the main objective now was to ensure SESB, as a utility provider in Sabah, is fully functional.

“The cost of supply in Sabah is very high compared to Peninsular Malaysia, here we are faced with the challenges of hillside or different terrain. Connection of electricity in the interior takes a high cost while the payments by consumers are minimal as there are not so many people in the area.

“The small amount of payments by the population is not enough to cover high maintenance costs, but all these costs are taken into consideration as well as acting fairly on the regulators with reasonable results,” he said.

“The government is always responsible for maintaining sustainable tariffs and not burdening the people at the same time,” he explained.