Pua: Ongkili's answer on 1MDB power buy proves Najib's claim 'baseless'

Energy, Green Technology and Water Minister Maximus Ongkili's confirmation that 1MDB has no role in reducing electricity tariffs or costs proves the prime minister's claim to be "completely baseless", DAP lawmaker Tony Pua said today.

Pua noted how Najib Abdul Razak had, in a blog post prior to the Budget 2018 announcement, claimed that 1MDB’s involvement in the renegotiation of power purchase agreements had resulted in massive savings for Malaysians.

Najib had said that 1MDB’s participation in the energy industry would save the country RM200 billion over the next 20 years.

Ongkili said in Parliament last week that the non-revision of the electricity tariff since 2012 had nothing to do with 1MDB's acquisition of three power plants - Tanjong Energy, Genting Sanyen and Jimah.

"Ongkili (photo) has now effectively clarified in Parliament that Najib’s claims are completely ridiculous.

"Not only has the minister stated without a doubt that 1MDB’s participation has had no effect on the tariff rates or energy costs, he added that the cost savings that Najib has accredited to 1MDB have nothing to do with them either," Pua said.

The Petaling Jaya Utara MP pointed out how the minister had said that the lower capacity rate financial of RM6 per kilowatt for 48 months, which resulted in RM1.6 billion in savings, was a condition in the tender set by the Energy Commission.

Thankful that Najib finally admitted

"It was certainly not because of 1MDB’s noble generosity. We are thankful that Najib finally admitted that those independent power producers were allowed to profit astronomically from the BN government.

"However, we can now also confirm that 1MDB has played no role to atone for the above injustice," added Pua.

Malaysians, he said, have not enjoyed a single sen in benefit as electricity tariffs have only increased since 1MDB started acquiring the independent power producers.

"Worse, 1MDB’s RM12.1 billion misadventure in the power sector resulted in multi-billion ringgit losses when it was forced to dispose of its entire energy interests to a China outfit for a mere RM9.83 billion.

"It is time for Najib to face the facts and deal with the billions of ringgit of losses and damage that 1MDB has caused to the taxpayers in our power sector, among other billions of ringgit in losses," Pua said.

Ongkili had insisted that the power tariff and power cost had nothing to do with the acquisition of the power plants as 1MDB purchased them and maintained the tariff after liberalisation, as stipulated under the final sales and purchase agreement of the independent power plants.

According to him, the electricity tariff in Peninsular Malaysia was fixed under the mechanism of Incentive-Based Regulation (IBR) since 2014.

- Mkini