Explain move to buy three IPPs, govt told

Three independent power producers have been bought for RM12bil by a government agency which has no experience in the field, said DAP MP for Taiping Nga Kor Ming.

KUALA LUMPUR: DAP MP for Taiping Nga Kor Ming has questioned the move of an untried government agency, 1Malaysia Development Berhad (1MDB), to acquire three independent power producers (IPP) in the past one year for a whopping RM12bil.

1MDB has acquired the assets of Tanjong Energy Holdings Sdn Bhd for RM8.5bil in March 2012, Genting Sanyen for RM2.3bil and Jimah Energy for RM1.2bil last week.

Nga said 1MDB had no experience in running power plants before.

The country might face a major blackout should 1MDB failed to discharge its duty as a power supplier, he told reporters at the Parliament lounge today.

He also raised doubts about the transactions, which were made in a hurry, despite the government knowing that some of the IPPs’ contracts were about to expire.

Nga said the government had overpaid Jimah Energy which posted an after tax profit of only RM11.8mil.

“Judging by the RM1.2mil acquisition price and the company’s current profit, it will take more than 100 years for 1MDB to fully recover its investment,” he added.

He urged the Public Account Committee to investigate the matter and asked the finance minister, who is also the prime minister, to give full disclosure of such major spending.

“The government is duty bound to be transparent, especially when it is seeking the house’s approval for another supplementary bill of RM12.17bil,” he said.