Latest news with #SDB
The Star
2 days ago
- Politics
- The Star
Shafie denies NPL write-off allegation
KOTA KINABALU: Datuk Seri Mohd Shafie Apdal strongly denied allegations that he was involved in the write-off of RM178mil in non-performing loans (NPLs) during his tenure as Sabah chief minister and Sabah Development Bank (SDB) Board of Directors' chairman. The opposition Parti Warisan president described the allegations published by an online portal as 'malicious and baseless', asserting that not a single NPL was written off under his watch. 'These accusations are outright lies, manufactured with the intent to deceive the public and destroy my credibility,' he said in a statement on Thursday (June 19). Shafie clarified that as chief minister, he had no involvement in the day-to-day operations or specific loan arrangements at the bank. 'Public institutions must be governed by professional processes, not political interference. I respected those boundaries and expected the bank's management to uphold their fiduciary duty to the people of Sabah,' he said. He slammed what he called 'calculated distortions' designed to smear him ahead of the looming state election, adding that the claim he wrote off loans to a politically connected firm, CASH Bhd, was entirely untrue. 'In fact, during my administration, I took every step necessary to recover problematic loans, not cover them up. Writing off NPLs recklessly would have been irresponsible and a betrayal of public trust,' he said. Shafie also questioned why the current Gabungan Rakyat Sabah (GRS) government, which has been in power for nearly five years, failed to launch a forensic audit or lodge reports with the Malaysian Anti-Corruption Commission (MACC) in 2021, when the issue supposedly occurred. 'If wrongdoing really occurred, why wait until now to bring it up? This is not about justice, but about politics. This is a desperate attempt to shift blame and distract from their failures,' he stressed. Shafie warned that he will not hesitate to take legal action to protect his name and integrity. 'I welcome any impartial investigation. But I will not remain silent while lies are repeated and recycled for political convenience,' he said.
Focus Malaysia
2 days ago
- Business
- Focus Malaysia
Sabah's GRS gov't steps up accountability with RM1.97b lawsuit against global audit giant EY
THE Sabah state government under Gabungan Rakyat Sabah (GRS) is continuing to signal a firmer commitment towards transparency and accountability in managing state institutions. Towards this end, the Sabah Development Bank (SDB), one of the state's most important financial institutions, has filed a RM1.97 bil lawsuit against global audit giant Ernst & Young (EY), alleging negligence in its audit work between 2017 to 2022, sources told FocusM. According to court documents sighted by FocusM, EY is accused of failing to detect serious financial irregularities during its audits, contributing to the accumulation of more than RM2.2 bil in non-performing loans (NPLs) and substantial losses for SDB. Initiated after an internal review under the Sabah leadership, the lawsuit marks a decisive step by the GRS administration to address long-standing financial problems at the bank. The case also represents a broader effort to safeguard public funds and reinforce integrity across government-linked institutions. In its statement of claim, SDB outlined 17 key points of alleged audit negligence by EY, including: Failure to detect over RM2.2 bil in NPLs Weak internal controls and failure to identify credit risks Reliance on outdated collateral valuation reports which lead to asset misstatements Audits conducted without professional scepticism Use of 'creative accounting' to mask financial weaknesses through loan 'evergreening' practices EY is also accused of having been aware of the true extent of asset impairments since 2017 but failing to advise SDB to make appropriate provisions, allegedly to maintain a positive financial image for the bank in order to support its bond and market borrowings. Clamping down on mismanagement On July 10 last year, State Finance Minister Datuk Masidi Manjun disclosed in the State Legislative Assembly that as of May 2023, a staggering 75% of SDB's RM6.6 bil loan portfolio had turned non-performing or impaired. He revealed that the former management had engaged in 'creative accounting' whereby new loans were issued to delinquent borrowers to repay old debts, thus masking the true extent of the NPL problem. Between 2017 and 2022 alone, the previous leadership allegedly 'fabricated' RM580 mil in book profits by recycling credit and recording unpaid interest as paper gains. Worse, many loans were approved without proper due diligence, allowing unqualified borrowers to tap into public funds. The bank's bond-driven funding model also worsened its liabilities as repayments fell short of bond maturities, thus forcing SDB to borrow further just to stay afloat. While financial mismanagement of this scale would once have been quietly buried, the present administration has chosen transparency. 'Cleaning up the dirt' The move comes as part of a wider approach under Chief Minister Datuk Seri Hajiji Noor's leadership. Based on new report, several individuals, including GRS assemblymen, are expected to be charged in court soon over alleged misconduct involving state-issued mining licenses. Throughout that investigation, the Sabah state government has publicly committed to giving full cooperation to the Malaysian Anti-Corruption Commission (MACC) with no political interference. The MACC has since clarified that the Chief Minister was not among those under investigation, and enforcement officials acknowledged the state's openness during the probe. Together, these developments point to a shift in Sabah's political and administrative culture that prioritises public accountability over political convenience. In SDB's case, EY was continuously appointed as external auditor by the previous state governments. However, it was only after the GRS government took over the state administration and new management was appointed at SDB that the true scale of the losses was uncovered. Since assuming oversight of SDB in mid-2023, the GRS administration has taken steps to overhaul the bank's governance. The bank was formally placed under the Chief Minister's Incorporation and the State Treasury with the new board launching sweeping reforms. These include a full internal audit, re-classification of loans in line with Bank Negara Malaysia (BNM) standards and legal action against 43 NPL borrowers. Professional recovery agencies have been engaged with the board targeting the recovery of RM1 bil in NPLs annually over three years. In the first year alone, SDB recovered RM1.9 bil in legacy loans from government-linked companies (GLCs) while reducing the bank's bond obligations from RM5 bill to RM3.3 bil. In early 2024, SDB rejected RM1.5 bil worth of new loan applications after stricter credit reviews, signalling a renewed focus on financial discipline. Very broadly, this lawsuit sends a clear message that even large corporate players will be held accountable if public interests are harmed. It also underscores the expectation that auditors, banks and other state-linked entities must meet higher governance standards going forward. Looking ahead, the GRS-led government is expected to pursue further improvements to financial oversight across state agencies and government-linked companies. The ultimate aim is to prevent a repeat of past failings, ensure stronger protections for public funds and build public confidence in Sabah's key institutions. As the state continues to focus on economic development, job creation and investor confidence, this latest move shows that governance reforms remain a key part of the agenda. – June 19, 2025 Main image credit: Sabah Development Bank's website
Borneo Post
2 days ago
- Politics
- Borneo Post
Shafie denies RM178 million loan write-off allegation, slams political smear campaign
Shafie KOTA KINABALU (June 19): Warisan president Datuk Seri Panglima Mohd Shafie Apdal has categorically denied what he described as malicious and baseless allegations linking him to the supposed write-off of non-performing loans (NPLs) during his tenure as Chief Minister of Sabah and chairman of the Board of Sabah Development Bank (SDB). 'These accusations are outright lies, manufactured to deceive the public and destroy my credibility,' said Shafie in a statement on Thursday. He asserted that not a single NPL was written off under his watch and stressed that all financial decisions were made through the bank's internal processes and credit evaluation protocols. 'As Chief Minister, I was not involved in the bank's day-to-day operations or specific loan arrangements. Public institutions must be governed by professional processes, not political interference. I respected those boundaries and expected the bank's management to uphold their fiduciary duty to the people of Sabah,' he said. Shafie also rejected claims that he protected cronies or extended special treatment to politically connected borrowers, calling the allegation a 'blatant lie.' 'The claim that I 'wrote off RM178 million in loans to CASH Bhd' is a calculated distortion,' he said, adding that his administration had instead taken all necessary steps to recover problematic loans, not conceal them. 'Writing off NPLs recklessly would have been irresponsible and a betrayal of public trust,' he said. He accused those behind the allegations of being individuals who previously benefited from politically connected loans and who now seek to distort the truth for personal gain. 'These individuals were never interested in recovery or reform. Their only concern has always been protecting their own pockets and avoiding public scrutiny,' he added. Shafie questioned why the Gabungan Rakyat Sabah (GRS) government, despite being in power for nearly five years, had not acted if wrongdoing had truly occurred. 'Why was there no forensic audit in 2021? Why was no report made to the MACC back then? Why is this issue suddenly being raised now when public trust in the government is collapsing?' he asked. 'It is clear that this is not about justice, but about politics. This is a deliberate smear campaign timed to distract the public as the current government struggles,' Shafie said, alleging the government feared accountability ahead of the coming election. 'In order to create a villain, they have conveniently chosen me,' he said. 'Let the people of Sabah see this for what it is: a desperate attempt to shift blame and divert attention from their own failures.' Shafie concluded by stating he welcomes any impartial investigation and will not hesitate to take legal action to defend his name and integrity. 'The people of Sabah are tired of watching another 'wayang kulit'. They want the truth and honest leadership that puts the people first,' he said.
India.com
4 days ago
- Politics
- India.com
5 lethal weapons that helped Israel carry out attacks and hit important targets in Iranian cities like Tehran Isfahan, Shiraz, and..., weapons are...
F-35I Adir (File) Tensions between Israel and Iran grew much worse after June 13, 2025, when Israel started a major military attack called 'Operation Rising Lion.' This attack showed just how strong and advanced Israel's military really is. Israel hit Iran's nuclear plants, army bases, and even top leaders. More than 400 people died in these attacks. Iran tried to fight back with missiles and drones, but its response was weak. Now, let's look at five such weapons that helped Israel carry out these attacks and hit important targets in cities like Tehran. 1. F-35I 'Adir' Stealth Fighter Jet One of Israel's strongest weapons is the F-35I Adir jet. It is a stealth jet, which means it can fly without being seen on enemy radar. Some key features: It can fly 2,200 kilometers without needing to refuel. It can go up to Mach 1.6 speed (that's 1.6 times the speed of sound). It can carry up to 8,160 kg of bombs and missiles. It uses smart Israeli bombs called Spice precision-guided bombs. During the operation, more than 200 F-35I jets attacked over 100 important targets in Iran, including the Natanz and Fordow nuclear plants. Because of its stealth, Iran's air defense systems could not detect them. The jets were able to destroy underground buildings, military command rooms, and other key sites in Iran. Thanks to the F-35I's advanced technology, Israel gained full air control over Tehran, attacking major targets without much risk to its own forces. Israel also used some very smart and powerful weapons in its attack on Iran. Two of these were the GBU-39/B Small Diameter Bomb (SDB) and the Jericho-3 ballistic missile. 2. GBU-39/B Small Diameter Bomb (SDB) This is a very smart bomb that weighs around 250 pounds. Even though it is small in size, it is very powerful and can hit targets up to 110 kilometers away. It uses GPS and internal navigation to reach its target with great accuracy. One amazing thing about this bomb is that it can break through up to 3 feet of reinforced concrete. Because it is small, fighter jets like the F-16 and F-35 can carry many of these bombs at once. During the attacks in June 2025, these bombs were used to hit: Missile launchers Nuclear research centers Command centers 3. Jericho-3 Ballistic Missile The Jericho-3 is a long-range missile made by Israel. It can travel between 4,800 to 6,500 kilometers, and carry a payload of up to 1,300 kilograms. This missile can be loaded with normal or even nuclear warheads (Israel is believed to have around 90 nuclear weapons). It uses a guidance system to find its way to the target and may also have GPS help. Although it's not clear if this missile was used in the June 2025 attack, its long range makes it possible to hit Tehran, Isfahan, Shiraz, and other major Iranian cities. 4. Spike Anti-Tank Missiles These are special missiles made to hit targets even when they are not directly in front (called Non-Line-of-Sight or NLOS). They can strike from as far as 30 kilometers away and use infrared and electro-optical technology to find and lock on to their targets. Spike missiles can be launched from vehicles, helicopters, or even drones, and they are powerful enough to destroy armored targets like tanks or bunkers. In the June 2025 strikes, these missiles were used to kill top Iranian military leaders, including: IRGC Commander Hossein Salami, Chief of Staff Mohammad Bagheri, 9 nuclear scientists 5. Heron TP Drones (Unmanned Aerial Vehicles) The Heron TP is a large and powerful Israeli drone. It has a wingspan of 26 meters, ability to fly at 45,000 feet and more than 30 hours of flight time. This drone can carry up to 1,000 kg of equipment like cameras, sensors, and even missiles (like the Israeli-made 'Ankor' missiles). In the attack on Iran, Heron TP drones were used to: Watch Iran's skies closely and send back real-time data Help F-35I fighter jets by giving them important information during the strikes Destroy mobile missile launchers Keep pressure on Iran by flying near important cities like Tehran Israel even set up a drone base near Tehran, which gave them an edge in the battle. Why Iran's Defense Failed 1. Old and Outdated Defense Systems Iran still depends on older missile defense systems like: The Russian S-300 Iran's homemade Bavar-373 Old Soviet-era equipment These systems couldn't detect or stop Israel's stealth aircraft (like the F-35I) or small smart bombs like the GBU-39/B. Israel even destroyed four S-300 systems, including one near Natanz (a key nuclear site). 2. Weak Short-Range Missiles Iran's short-range air defense missiles were not enough to stop high-speed or long-range Israeli attacks. Because of this, Israel was able to control the airspace over Tehran, allowing them to attack key locations like the Ministry of Defense and nuclear sites without much resistance.
Daily Express
06-06-2025
- Business
- Daily Express
Sabah Development Bank Berhad's shift to ‘Sabah First' policy paying off
Published on: Friday, June 06, 2025 Published on: Fri, Jun 06, 2025 Text Size: Financing is given to developers within Sabah who bring direct impact to our people,' Chua emphasized. Kota Kinabalu: Early success in Sabah Development Bank (SDB) recovery as reported by The Edge demonstrates a significant shift compared to previous approaches that often disadvantaged the state. 'Since the GRS Government took over the state administration, we have been well aware of the scale of challenges we inherited. Many GLCs and state institutions were in financial decline due to policies that did not prioritise Sabah. Advertisement 'If Sabah is to continue progressing, the foundation of administration must be fixed — starting with transparency, integrity and policies that are genuinely based on Sabah's interests,' said Star Deputy President Datuk Kenny Chua. The former Assistant Finance Minister said SDB's recovery began in the second half of 2023 through a three-year transformation plan under the new leadership of the Board of Directors and a renewed management team. The Edge reported that SDB had succeeded in reducing its bond obligations from RM5 billion in July 2023 to RM3 billion, while the overall capital ratio rose from 7.9 per cent at the end of 2023 to 19.6 percent by the end of 2024. 'Today, we see very clear results — non-performing loans have been recovered, bond obligations reduced, capital ratios strengthened and, most importantly, the disbursement of loans now truly supports Sabah's development in sectors like water supply, energy, and infrastructure that directly benefit the people of this state.' He said that SDB's current approach is very different from the past. 'SDB no longer channels loans to big tycoons in Peninsular Malaysia who ultimately failed to repay and burden Sabah. Now, our focus is clear — 'Sabah First'. Financing is given to developers within Sabah who bring direct impact to our people,' he emphasized. He said SDB's success marks the beginning of GRS's economic reform agenda. 'What we see at SDB today is only the beginning. Many more reform measures will be introduced. What's important is that our approach is now clear — Sabah First. The absolute priority is projects that truly benefit the people of Sabah. 'I am confident that, in time, the people of Sabah will see and feel the real results of all the plans under the Sabah Maju Jaya 1.0 Development Plan. This is our promise — to continue implementing reforms to build a stronger, more competitive Sabah that is rooted in the interests of its people,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
