KUALA LUMPUR (March 22): PKR vice president Rafizi Ramli has called on Putrajaya not to heed former premier Datuk Seri Najib Razak's call to bail out cash-strapped Sapura Energy Bhd, saying public funds should not be used to protect a handful of elites.

In a statement, Rafizi said that while he sympathises with Sapura Energy's employees who face an uncertain future, the spending of billions of the people's money for the benefit of a small group of corporates is unfair, especially so amid the current business climate which has been difficult for all.

"Even more so when an amount exceeding billions in ringgit had already been injected into Sapura over a decade ago. Even though it had received the injection of the people's funds, Sapura still faced financial troubles despite the high crude oil prices," he said.

"If Najib's suggestion is entertained, the rakyat's money, which could be used for other purposes such as capacity building among small entrepreneurs and the youth, and for the granting of education loans, would instead only benefit the elite," said Rafizi.

He added that he will present the figures in the coming days to remind the people to not "fall for Najib's economic management ideas".

In a Facebook posting on Sunday (March 20), Najib suggested that the government should protect Sapura Energy from bankruptcy by providing loans or getting Petroliam Nasional Bhd or Khazanah Nasional Bhd to take over ownership of the group from Permodalan Nasional Bhd.

He argued that the people would face big losses if Sapura Energy was not saved, citing RM4 billion in losses to holders of Amanah Saham Bumiputera and RM10 billion in losses to Maybank, as well as the 10,000 employees that would lose their jobs.

Sapura Energy is currently undertaking a massive debt restructuring involving banks, vendors and contractors.

The court has granted an order under Section 366 of the Companies Act that will enable it and its subsidiaries to summon meetings with its creditors to consider and approve a proposed scheme of arrangements and compromises as part of its debt restructuring plan.

Sapura Energy has also obtained a restraining order under Section 368 — effective for three months from March 10 — to restrain and suspend legal proceedings against it while enabling the group and its subsidiaries to engage with its creditors without being disrupted by the threat of litigation.

Sapura Energy's share price closed unchanged at 3.5 sen, giving the company a market capitalisation of RM559.27 million.