Sale of IPPs to China-Qatar group 'goes against policy'

State investment arm 1MDB’s sale of independent power producers (IPPs) held under its subsidiary Edra Global Energy Bhd to China General Nuclear Power Corp (CGN Group) violates Malaysia’s policy restricting the sale of strategic assets to foreign companies, PKR says.

The sale of the IPPs to the China-Qatar consortium would lead to more of such contracts being negotiated with foreign companies, PKR secretary-general Rafizi Ramli said at a press conference today.

“Yesterday, 1MDB announced the sale of its entire equity in all of its power assets held under Edra Energy to a China-Qatar consortium.

“This clearly goes against Malaysia’s policy, on the 49 percent restriction on foreign equity, that strategic assets, such as IPPs, cannot fall into the hands of foreign companies,” Rafizi, the MP for Pandan, added.

In announcing the RM9.83 billion sale,1MDB president Arul Kanda Kandasamy described the purchase by the CGN Group as a clear vote of confidence in the Malaysian economy.

[More to follow]

-Mkini