Industrial Development Minister Datuk Seri Panglima Raymond Tan Shu Kiah assured the 3,500 staff of Sabah Electricity Sendirian Berhad (SESB) of continued employment and the company will not be closed.

Speaking to reporters after attending the District Council Action Meeting at the Sandakan Municipal Council (SMC) here yesterday, Raymond said he had informed all government officers attending the meeting on SESB's current status.

"The government is clear on its decision not to shut down SESB. We also assured all its 3,500 staff to continue working diligently to improve our electricity supply as retrenchment issue does not arise.

"Based on the SESB's financial record since 2004, it is still making profit. So, there is no such thing as shutting down SESB due to financial constraints" he explained.

Raymond gave a similar assurance early this month that SESB would not shut down despite the power company is on the verge of insolvency.

SESB is an 80%-owned subsidiary of Tenaga Nasional Berhad and 20% by the Sabah government.

SESB managing director Adb Razak Salim also told the staff at their annual gathering in Kota Kinabalu two days ago that the SESB would operate as usual and that there would be no lay-offs.

On other development, Raymond said Sandakan faced no water supply shortage although it had received 420 reports of water leakage.

"The Water Department should deal with this issue by taking immediate action as these leakages are causing losses" he added.

Apart from electricity and water issues, among other issues discussed at the meeting was sewerage problem, Raymond said.

He said sewerage was now being monitored by the Public Works Department (PWD). However, he hoped that SMC could assist PWD with related assets to solve the sewerage problems.

"We did receive complaints from the public relating to sewerage problems and public did not know that sewerage maintenance is now under the PWD.

"However, the SMC should assist PWD in terms of related assets" he added.

SMC President Datuk James Wong, his deputy president, Haji Hamsan Haji Awang Supain and representatives from government agencies also attended the meeting.