Shafie Apdal in May during a Buka Puasa event with the employees of SFI promised that salaries would be paid and that the state would look after them. It seems those were merely empty promises because since then the employees have constantly been subject to financial woes due to late salary payments.

This is not only unbecoming of the chief minister, but it reflects negatively on Shafie’s sincerity in helping the people of rural Sabah, especially Sipitang.

The State Government claims to prioritise the economic prosperity of the people of Sabah – but these are just ‘false hopes’ and nothing that is happening on the ground can substantiate that fact.

Look at Sabah Forest Industries (“SFI”) in Sipitang. Over a thousand employees are in a dilemma because Grant Thornton Consulting (“GTC”), the receiver manager of the company continuously delayed salary payments to employees. This is not uncommon. As a result, the employees are unable to support themselves and their families – especially after being promised to being looked after by GTC, a statement that was echoed by the state.

After the state government inexplicably refused to issue new timber licenses to Pelangi Prestasi Sdn Bhd (“PPSB”) –   despite signing the Sale & Purchase Agreement in April last year and paying a deposit payment of RM120 million – GTC, the ultimate management of SFI, is now responsible for employee salaries. GTC failed.   

PPSB had been paying the employee salaries since March 2018, up until March 2019 – they had even paid the employees the backpay owed them from January of 2018 by GTC, something PPSB was neither required nor needed to do.

Without a legal owner to bail the ailing SFI, GTC, who is now responsible for decision-making at the company, has failed to pay existing employees of SFI their salaries. It’s clear that GTC has been less than honest about its ability to handle SFI without the help of a legal owner – they are essentially incapable of carrying out their receivership responsibilities.

Yet, GTC, together with the Sabah state government, killed a deal that would have directly benefitted the villagers of Sipitang. PPSB has already proven that it is capable of paying the salaries of employees, and had promised future investment in local infrastructure and community growth.

What reason did GTC in behaving such a manner? Clearly, they were not acting in the best interests of SFI’s shareholders and employees when they literally went behind PPSB’s back, after a Sale & Purchase Agreement had already been signed, to call off the venture and seek a new buyer.

GTC appears to have acted upon instructions of the Sabah state government. Because would a responsible Receiver Manager consulting firm have turned down a purchase offer by a reputable company that had already proven its capability in supporting the SFI staff? As a receiver manager, isn’t securing a premium buyer for the ailing SFI part of its responsibilities?

GTC obviously has to relook its agenda vis-à-vis its purpose/function. Is GTC working in the best interest of SFI, meaning Maybank Trustee (GTC’s appointor), the owners/shareholders and employees or is the consulting firm working in the best interests of the Sabah State Government?  

And is the State Government committed to socio-economic development of the state and working in the best interests of the people? Based on its actions, this would seem highly unlikely.