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Monday, June 29, 2015

TNB rescued 1MDB for an undisclosed price

We are very much alarmed that Tenaga Nasional Berhad will get their hands dirty in order to rescue 1MDB.
After exclaiming that TNB will not bail out the debt-infested company, TNB made a U-turn and will buy 1MDB’s stake in the Project 3B after all.
Tenaga Nasional Berhad (TNB) will buy over 1Malaysia Development Berhad (1MDB)’s stake in the Project 3B coal power plant, the Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili confirmed today.
Ongkili told reporters at the Parliament lobby today that TNB is buying over 1MDB’s 70% in the project, held through the state investor’s energy arm, Edra Global Energy Bhd, for an undisclosed price.
“It’s on a willing-buyer-willing-seller basis,” he said.
The Cabinet approved the move as the power plant project has been delayed by 1MDB, which faced cash flow problems as it sat on a RM42 billion debt.
When the fee is undisclosed then automatically people will assume that there is something to hide. Especially when a day later, TNB’s CEO, Datuk Seri Azman Mohamad had said:
“Based on financial analysis, the project is expected to have a positive impact on the earnings of TNB. It is not a bailout of 1MDB. We wish to stress that no premium will be paid for the acquisition of the 70% stake in the project.”
Is TNB working for 1MDB or for the people?
Is TNB working for 1MDB or for the people?
In the first place, when 1MDB withdrew from the Project in March, the Energy Commission should penalise 1MDB  and re-tender the 70% stake of the project. Or at least, award it directly to TNB without TNB buying over the 70% from 1MDB. That would be the most cost effective solution for TNB and the rakyat.
But since TNB is owned by Khazanah Nasional and its Chairman is also the Top Advisor of the troubled 1MDB, then bail out money need to be given under the pretext of, “no premium will be paid for the acquisition”.
Obviously the desperate seller will be more than willing to sell to the ‘willing’ buyer since both entities ultimately report to the same person.
And these people would want to think that the public will be stupid enough and won’t see TNB paying an undisclosed fee as a bail out.
1MDB had not even pumped any money into the project as it was delayed since October 2014 because 1MDB could not get any financing. Who wants to further finance a company which is unable to make loan repayments without getting help from others?
Therefore, if TNB had really paid millions of ringgit to 1MDB for a project which they had not pumped any money into, then truly this country is governed by idiotic people. Even RM100 million ‘compensation’ will be considered excessive and a bail out. The people has the right to know how much is being paid to 1MDB.
Energy Commission could have made this project continue without TNB’s reputation being tarnished and its cash depleted for bailing out a failed company yet they managed to do it at a more costlier way; just so that 1MDB could pay off some loan interests or overheads.
Will electric tariff be hiked soon because ‘revision is due’? Only time will tell.

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