Friday 29 Mar 2024
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KUALA LUMPUR (Oct 30): Following the investigation by the Malaysian Anti-Corruption Commission (MACC) into its RM300 million loan from Sabah Development Bank Bhd (SDB), AirAsia Group Bhd has come out to clarify that the transaction was completed in accordance with all relevant laws, policies and procedures.  

In a filing with Bursa Malaysia today, AirAsia stressed all discussions and negotiations with SDB and its officials were conducted in an appropriate manner, and on an arm's length basis.  

It explained that the loan from SDB is to be utilised for AirAsia's expansion plans to transform Kota Kinabalu into an international hub for its passenger and logistics operations. 

"With the facilities, AirAsia’s contribution is expected to double within the next 10 years and help Sabah regain its position as a top tourism destination, post-Covid-19," said the airline.  

Besides that, AirAsia highlighted that the loan would also be used to develop and enhance cold chain facilities in Sabah that would increase the marketability of the state’s fresh produce domestically and internationally through the group’s OURFARM digital food supply platform.   

"This would potentially result in increased profits for farmers and fishermen in the state. This is in line with Sabah's mission of becoming a top food producing state in Malaysia and contribute towards the country's food security," it added.  

AirAsia went on to say that the loan has been approved by SDB, given the projects are intended to bring about significant positive socio-economic impacts to Sabah.  

"Besides their strategic values, the components of these projects also provide solid commercial basis and merits as reflected in the terms and conditions imposed upon AirAsia," it added.  

On Wednesday, MACC director for Sabah S Karunanithy confirmed that the agency has begun an investigation into the RM300 million loan from SDB to AirAsia.  

Recently-installed Chief Minister Datuk Seri Hajiji Noor was reported to have ordered a forensic investigation by an independent audit firm into the bank's decision, and called in the MACC. 

The investigation was said to be looking into how the funds were disbursed quickly within a few days of the installation of the state government during the previous general election.  

Former Sabah Chief Minister Datuk Seri Shafie Apdal said in a statement that he welcomed the investigation and that there was nothing hidden behind the loan. 
"The application was not made overnight but instead SDB had carried out the best and most thorough investigation and consideration before the approval was given," he said. 

In its statement today, AirAsia said the application had taken five months to complete.  

Edited ByS Kanagaraju
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