Cahaya Mata Sarawak Berhad (CMSB), a public-listed company meaning the 'Light of Sarawak's Eye' and controlled by Chief Minister Abdul Taib Mahmud's family has posted a net loss of RM103 mil for the financial year ending Dec 31 2005.

This was a stark contrast to the previous year when the company reported profits of RM29 mil.

Taib's two sons, Sulaiman and Mahmud Bekir - group chairperson and group deputy chairperson respectively - together with Taib's wife Laila, hold a controlling stake in the company.

In CMSB's unaudited interim report to Bursa Malaysia dated Feb 28, the company reported a total revenue of RM881 mil, down by RM144 mil from the previous financial year.

The company said that the loss was largely due to an impairment of assets arising from the board of director's decision to close down its CMS Steel Bhd's rolling mill in Sejingkat, near Kuching.

It was a move that costs the company RM100 mil, in addition to a provision of RM3 mil for termination benefits.

The steel mill which was declared open by Taib in 1999 will cease operations sometime within the first quarter of this year, according to a report.

Many government projects

The report also reveals that the company had many lucrative long-term state sanctioned projects such as road maintenance, manufacturing and supply of cement.

Large plots of prime land in and around the Kuching area were also said to have been allocated by the government for the company to develop commercial and housing projects.

The group owns two cement plants - in Kuching and Bintulu - and has interests in manufacturing, banking (RHB Bank), construction, securities and derivatives, trading and services.

In general, the report cites a weak economic climate which resulted in losses for most sectors of the group.

Further more, the report reveals that the company had a total short and long-term borrowings, including bonds, amounting to RM859 mil.