Najib told to answer former TNB boss

KUALA LUMPUR - Prime Minister Najib Razak has been told to come clean over the allegation by former Tenaga Nasional Berhad chief executive Ani Arope that the Economic Planning Unit was responsible for a gas subsidy scandal which squandered some RM131.3 billion from national coffers at the end of last year.

DAP secretary general and Penang chief minister Lim Guan Eng said Najib should come forward to explain why Malaysians were 'victimised' for the government's mistake.

“The Prime Minister must answer why Malaysians must pay for the mistake or the imbalanced deals by EPU that is against national interest because it benefited the few IPPs (Independent Power Producers) at the expense of 27 million Malaysians,” Lim said in a statement.

Ani, who resigned as the national power company's executive chairman over disagreement with the government's instruction to TNB to purchase electricity from YTL Power Services, Powertek and Malakoff, had earlier nicknamed EPU the “Economic Plundering Unit” for raising electricity tariffs.

The EPU had forced TNB to sign the purchase deals with the three IPPs during the premiership of Dr Mahathir Mohamad, although TNB had no need for the purchase.

“EPU forced Tenaga to buy electricity from an independent power producer (IPP), believed to be Genting Sanyen, at 14 sen per kilowatt hour (kWh) despite an existing offer of 12 sen/kWh then; other IPPs then were charging 16 sen/kWh.

"This has resulted in Malaysia having the highest energy reserve margin in the world at 52.6% at 2010,” said Lim, adding that should gas prices remain this year, the government would have to fork out RM27 billion for gas subsidy to both the power and non-power sectors.

'No justification to 7% hike'

Lim said there was no justification for the 7 percent hike in electricity, when at the same time TNB had to pay more for natural gas that increased by RM3 per mmBtu, cutting national gas subsidy costs to RM25.64 billion from RM27.22 billion.

Ani (left), who resigned as the national power company's executive chairman over disagreement with the government's instruction to TNB to purchase electricity from YTL Power Services, Powertek and Malakoff, had earlier nicknamed EPU the “Economic Plundering Unit” for raising electricity tariffs.

The EPU had forced TNB to sign the purchase deals with the three IPPs during the premiership of Dr Mahathir Mohamad, although TNB had no need for the purchase.

“EPU forced Tenaga to buy electricity from an independent power producer (IPP), believed to be Genting Sanyen, at 14 sen per kilowatt hour (kWh) despite an existing offer of 12 sen/kWh then; other IPPs then were charging 16 sen/kWh.

"This has resulted in Malaysia having the highest energy reserve margin in the world at 52.6% at 2010,” said Lim, adding that should gas prices remain this year, the government would have to fork out RM27 billion for gas subsidy to both the power and non-power sectors.

'No justification to 7% hike'

Lim said there was no justification for the 7 percent hike in electricity, when at the same time TNB had to pay more for natural gas that increased by RM3 per mmBtu, cutting national gas subsidy costs to RM25.64 billion from RM27.22 billion.

- Harakahdaily