Why RM100 million grant for profit-bound firm, asks PKR’s Rafizi

A PKR lawmaker has questioned Putrajaya’s intentions of allegedly awarding a RM100 million grant to a firm that is already on the road to profit as the grant comes on the back of taxpayers.

Party strategic director Rafizi Ramli (pic) said NSE Resources Sdn Bhd's commercial gasifier in Kertih, Terengganu, is set to rake RM78 million in total revenue by 2023.

NSE Resources was said to obtain a RM100 million research and development (R&D) grant from Putrajaya on the recommendation of the prime minister and is set to make RM68 million a year once its commercial project takes off next year.

Rafizi added that the company was also set to make an operational profit of RM27 million and RM31 million for the same period respectively, and it did not need to pay back the grant.

Rafizi, who is also the Pandan MP, wanted to know why Putrajaya awarded the grant to the company, calling on the prime minister to explain the situation. 

"NSE Resources is set to rake in huge profits every year from its project without forking out any capital because it is fully borne by the taxpayers through the grant.

"I want the prime minister to explain why he and the Science, Technology and Industry (Mosti) minister approved the RM100 million grant to fund the project which will only enrich the cronies," Rafizi said at a press conference at the Parliament lobby today.

For the past few months, the PKR strategist questioned Prime Minister Datuk Seri Najib Razak's alleged interference in the approval of the R&D grant to NSE Resources through a letter signed by minister Datuk Dr Ewon Ebin on January 21.

The approval letter from the ministry had apparently referred to a letter from Najib's office dated November 21 last year, after NSE Resources wrote to the prime minister on November 15.

Rafizi's continued sniping at NSE Resources had raised the ire of the company's chief executive officer Azhar Anuar, who had threatened to sue the former.
In an interview with Star Online on April 25, Azhar had said he had "no choice" but to consider taking legal action against Rafizi as his allegations had affected the company's name and reputation.

He also denied his 12-year-old company had ties with Najib or Umno.

Putrajaya also denied Rafizi’s allegations, with the ministry's deputy minister Datuk Abu Bakar Mohamad Diah revealing a list of more than 4,000 grant recipients by Mosti which did not include NSE Resources.

Abu Bakar also questioned the authenticity of the letters produced by Rafizi.

"The ministry's records do not show any single private firm which was awarded more than RM3 million, out of the total RM2.9 billion allocated under the 9th Malaysia Plan," he was quoted as saying by Malaysiakini.

However, Rafizi rebutted Abu Bakar’s denial, saying the list he showed was from the 9th Malaysia Plan for the period of 2006 to 2010, whereas the information he exposed was a grant approved by the ministry on January 21 this year.

- TMI