Syed Mokhtar and the BN's 25 sen Rip-Off

The morning papers announced that Malakoff is to be awarded a project to build a 1,000 MW power plant. The plant will be given a 15 year concession to sell the power at 25 sen per kwh to TNB. It is enough to make you choke on your roti canai.

Ani Arope had noted with indignation that the IPPs when they first signed the now infamous IPP agreement had been allowed to sell the power at 14 and 16 sen per kwh. And now, amid all the outrage and anger over the electricity tariff hike and the IPPs with their RM19 billion subsidies, the government chooses to do this? The disdain in which they hold the electorate is simply astounding!

In the first place, why a coal-fired plant? It is an inefficient and polluting fuel which is being replaced by wind, water and gas fuelled plants. And why is it even necessary when we have a 42% electricity reserve margin. Let them build plants if they want but only purchase if they supply their electricity at competitive rates, which should be 6 sen a kwh, not a ludicruous 25 sen. The same goes for the rest of these IPPs.

UMNO's crony system

MMC, Malakoff’s parent company, is owned by Syed Mokhtar, who is one of the richest businessman in Malaysia. This deal will make him richer still. He already owns at least 6 IPPs in Malaysia, all with agreements which make them no-lose enterprises.

The full details of what those agreements net Syed Mokhtar; the government is not willing to reveal. Transparency is not their cup of tea, especially when the truth is ugly.

This seems to be what big business is all about in Malaysia. Be closely connected with the Prime Minister or the powers-that-be, bankroll them perhaps, and they will hand you public money through the back door. In other words, cronyism!

But the brazen nature of this deal, coming in the middle of severe public discontent over the tariff hikes, stands out even in Malaysia. Wiser men would have laid low for a while.

The philosopher might wonder at the avariciousness of man and the never-ending desire for more no matter how it beggars their fellows.

We will no doubt receive some unconvincing justification for this deal from the BN.

Greed is good, we may be told. - Malaysia Chronicle