Fishy Share Transaction

Sarawak Energy Berhad (SEB) sold 59,000,000 Encorp Shares at the price of RM86.1 million to a RM2 company. The RM2 company re-sold 40,000,000 of the said shares to a third party at the price of RM120 million within 24 hours, making an instant profit of RM33.9 million and still having19,000,000 Encorp shares.

SEB's majority shareholder is Sarawak State Government. As the holding company of SESCO, SEB derives its revenue mainly from the electricity tariffs paid by Sarawakians. We Sarawakians pay the most expensive domestice electricity tariff in the whole of Malaysia. April this year, the government allowed SEB to increase the industrial tariff by more than 30%. All said, SEB owes its assets and revenue to the people of Sarawak.

The questions that SEB must answer to all Sarawakians in respect of this fishy share transaction are:

1. Did SEB know about the price that the ultimate purchaser of the shares offer before selling the share to the RM2 company?

2. Why did SEB sell such a huge number of shares involving such large amount to a RM2 company?

3. Is it a siphoning of SEB assets (which supposedly belongs to Sarawkians) to a few individual well-connected ones?

4. Beside this transaction, is SEB disposing its other assets clandestinely to enrich a few individual well-connected ones?

5. Is this the main reason why the Sarawak government privatise SESCO, so that such transaction need not be reported to the Dewan Undangan Negeri. This share transaction was picked up by The Edge because it involves a substantial transaction of a public listed company's shares. If it were other assets, the public will never know about it.

If SEB does not provide answers to the above question, Awang Tengah will face the grill in the coming DUN sitting.

Chieng Jen