Fahmi said that the money the government poured into the integrated oil and gas services company was a “strategic investment”.

“It’s not a bailout like the ones that occurred during Dr Mahathir Mohamad’s time,” he said, referring to Mahathir’s first stint as prime minister.

“This is Madani, not Mahathir.”

It was alleged that Mahathir’s administration had engaged in several bailout efforts, particularly during and after the 1997 Asian financial crisis.

Among them include the Malaysian Airline System, which was then owned by Tajudin Ramli, and shipping assets Konsortium Perkapalan Bhd.

In a Bursa filing yesterday, Sapura Energy said that the finance ministry, via its special purpose vehicle Malaysia Development Holding Sdn Bhd, would be subscribing to its redeemable convertible loan stocks worth RM1.1 billion.

The funds, according to The Edge, have been earmarked exclusively for settling Sapura Energy’s arrears with its vendors.

The government’s decision to inject the funds drew accusations that it had bailed out Sapura Energy, a practice which Pakatan Harapan leaders had condemned when it was in the opposition.

Sapura Energy’s financial trouble started in the mid-2010s due to falling oil prices, leading to annual losses and mounting debt.

In 2023, external auditors Ernst & Young flagged concerns over Sapura Energy’s ability to continue operating. Last month, the company secured creditor approval for a debt restructuring plan, which was cleared by the court last Thursday.

Fahmi said that the government’s investment comes with “specific conditions”, as it is not free money.

“Among the conditions imposed is that the funds must be used to manage Sapura Energy’s outstanding payments to more than 2,000 Bumiputera vendors,” he said.

He added that the government takes a case-by-case approach in assisting troubled government-linked companies.

“In Sapura Energy’s case, the goal is to place the company in a more sustainable position. Sapura has a crucial role in the oil and gas sector.”