How 1MDB Made Petronas And TNB Richer After Losing More Than RM150 Billion Over 20 Years

Most Malaysians do not know that, since 1992, Mahathir’s IPPs have been robbing TNB of an estimated RM150 billion. In fact, Kit Siang revealed this greatest robbery in Malaysian history in 2013. One of the primary reasons for setting up 1MDB was to take back the IPPs and save TNB more than RM10 billion a year. In the same process Petronas also saved billions in fuel subsidies. This is something Mahathir does not want Malaysians to know, which is why he attacked 1MDB in 2015.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

Najib Tun Razak said, for 15 years up to 2012, the national petroleum company was forced to subsidise gas that it supplied to independent power producers (IPP). This led to Petronas incurring losses of over RM10 billion every year.

However, Najib said, a little over six years ago, 1MDB took over many of the IPPs and became the second largest IPP company in the country. This, he said, allowed the government to initiate open tenders for IPP agreements.

Najib said after 2012, rates for gas supplied to IPP were increased in stages and allowed Petronas to reduce losses incurred from its gas subsidies to between RM1 billion and RM2 billion every year from RM13 billion to RM15 billion a year previously. (READ MORE HERE)

Kit Siang revealed that Mahathir’s IPPs was Malaysia’s greatest robbery in history, estimated at RM260 billion today

On 11 October 2013, this was what Lim Kit Siang said, as reported by Malaysiakini:

In his book published by the Fulbright Alumni Association of Malaysia, former Tenaga Nasional Bhd (TNB) executive chairperson Ani Arope reveals how, after the landmark blackout in Peninsular Malaysia in 1992, TNB was forced to surrender the land it had acquired in Paka (Terengganu) and Pasir Gudang (Johor) to a third party for power plants.

TNB was robbed of an estimated RM150 billion over more than 20 years

This started the era of the independent power producers (IPPs) and the first was YTL Power Generation Sdn Bhd.

This was followed by a slew of other IPPs – Powertek Bhd, Genting Sanyan Power Sdn Bhd, Segeri Energy Ventures Sdn Bhd, Malakoff Bhd, Tanjung plc, EPE Power Sabah Energy Corp, Alpha Intercount’l Bhd, Sutera Bhd, Cergas Unggul Sdn Bhd and Ekran Corp.

Although Ani had felt that the power purchase agreements with YTL for a period of 21 years – from 1994 to 2015 – were “too darn generous”, he was pressured to ink the deal, which had been drafted by the Economic Planning Unit (EPU).

Then prime minister Dr Mahathir Mohamad was the man who “engineered” the rise of IPPs.

Ani Arope revealed that Mahathir’s IPP was a rip-off and Malaysia was robbed of billions every year for more than 20 years

“There was no negotiation; absolutely none. Instead of talking directly with the IPPs, TNB was sitting down with the EPU. And we were harassed, humiliated and talked down every time we went there.

“After that, my team was disappointed. The EPU just gave us the terms and asked us to agree. I said no way I would,” Ani reveals in his recently released memoirs.

Ani, who was under a lot of pressure to sign the agreements, felt the deal was morally wrong and lopsided.

“If it is legal and not fair, I will not do it. If it is fair and illegal, I still won’t do it. It has to be legal and fair,” he says. (READ MORE HERE)

Tenaga Nasional Berhad’s key financials 2012-2017