In his blog post prior to the Budget 2018 announcement, the Prime Minister Dato’ Seri Najib Razak had made the claim that 1MDB’s involvement in the renegotiation of lopsided Power Purchase Agreements (PPAs) had resulted in massive savings for Malaysians. He said that 1MDB’s participation in the energy industry had saved the country RM200 billion over the next 20 years.
However, the Minister of Energy, Green Technology and Water in his winding-up speech in Parliament on 9 November, said that 1MDB’s ownership of Tanjong Energy, Genting Sanyen and Jimah had nothing to do with the increase or decrease of electricity tariff rates or costs because 1MDB maintained the rates as stipulated by the final sales and purchase agreements.
Dato’ Seri Maximus Ongkili has now effectively clarified in Parliament that Najib’s claims are completely ridiculous.
Not only has the Minister stated without 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.
Ongkili said in his speech that the lower capacity rate financial (CRF) of RM6kw per month for 48 months, which resulted in RM1.6 billion in savings was a condition in the tender set by the Energy Commission. It was certainly not because of 1MDB’s noble generosity.
We are thankful that Dato’ Seri Najib finally admitted that those independent power producers (IPPs) were allowed to profit astronomically from the BN government of which he was part of before. However, we can now also confirm that 1MDB has played no role to atone for the the above injustice.
Malaysians haven’t enjoyed a single sen in benefit as electricity tariffs have only increased and not decreased since 1MDB started acquiring these IPPs. Worse, the 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 Dato' Seri Najib Razak to face the facts and deal with the billions of ringgit of losses and damage that 1MDB has caused to the tax-payers in our power sector, amongst other billions of ringgit of losses.
Showing posts with label Energy. Show all posts
Showing posts with label Energy. Show all posts
Tuesday, November 14, 2017
Wednesday, April 22, 2015
Malaysians will pay more for electricity to help bailout 1MDB
During my speech at the DAP Petaling Jaya Fund-Raising Dinner in November 2014, I had told the audience that Malaysians will have to pay higher electricity prices in order to bailout 1MDB. It was the same speech which the Prime Minister, Dato’ Seri Najib Razak has subsequently sued me for defamation.
I had then asserted that Malaysians have pay higher electricity prices because 1MDB was awarded several lucrative independent power producer (IPP) concessions without any open tender. Such direct awards went directly against the publicly stated principles of the Energy Commission to adopt open tender practices in order to promote competition in the industry.
The contracts awarded included a 2,400MW combined-cycle gas-turbine power plant in August 2014 and a 50MW solar farm in March 2014. In addition, 1MDB was also awarded a 2,000MW coal-fired power plant in February, after the lowest tariff bid by YTL Power was controversially disqualified on a technicality.
I had argued that the tariff wil be higher for Malaysians in the future because the Government will award 1MDB will more lucrative tariffs in order to create more profits for the distressed firm to pay of its RM42 billion of monstrous debt. Otherwise, why would the Government eschew the open tender process if 1MDB would offer the lowest possible tariff in the first place?
However, the situation is even worse than I have anticipated, because the Government has agreed to raise the tariff rates for 1MDB power plants even before their construction have even commence.
It was reported on Monday in The Edge Financial Daily that the Energy Commission has already approved an increase in tariff for the solar power plant from 41 sen per kWh to 50 sen per kWh. That represents a whopping 22% hike in electricity tariffs within a year after the project has been awarded via direct negotiations. The power supply will be sold to Tenaga Nasional, which will in turn transfer the cost burden to consumers.
As highlighted by my colleague, the Member of Parliament for Serdang, Dr Ong Kian Ming on Monday itself, the 50 sen tariff rate is higher the 49 sen recently awarded to smaller solar plants sized between 10MW to 30MW via competitive bidding. As he rightly pointed out, the substantially larger 50MW solar farm will naturally enjoy higher economies of scale to offer cheaper prices. In addition, with the rapidly plummeting global solar photovoltaic panel prices, tariffs should be declining over time, and not be increased by a whopping 22%.
Worse, The Financial Daily also reported that 1MDB is in the process of “disposing” its winning bid for the 2,000MW coal-fired power plant which it won via the controversial open tender. This is because the debt-laden and cash-stricken 1MDB has no money to fund the project. Furthermore no bank is willing to lend any more money to the company.
However, instead of cancelling the award due to breach of concession terms, the Energy Commission is allowing 1MDB to profit from the license award by on-selling its rights to Tenaga Nasional Bhd (TNB). To sweeten the deal for TNB to acquire the concession from 1MDB, it is understood that TNB will be allowed to renegotiate the tariff which was set earlier during the bid. Once again, it means higher profits for 1MDB for doing absolutely nothing other than to on-sell the concession, while the rakyat will have to pay for higher electricity rates to TNB.
If the Government is truly concerned with the interest of the ordinary man, then surely the right thing to do will be to cancel all of the above recently awarded power plant concessions to 1MDB, simply because the latter has failed to produce the necessary funds to commence on their construction. The power plants should instead be tendered out in an open and transparent fashion so that the most financial strong and experienced companies which bid at the lowest tariff rates should be awarded the contracts.
However, the Government chose to artificially improve the profitability of 1MDB in order to cover up the billions of ringgit of losses suffered by the company. The losers are Malaysians who are forced to bear higher electricity prices on top of the recently implemented Goods and Services Tax. The above proves that I am right many times over that the men-on-the-street are being robbed with higher electricity prices in order to bailout 1MDB.
I had then asserted that Malaysians have pay higher electricity prices because 1MDB was awarded several lucrative independent power producer (IPP) concessions without any open tender. Such direct awards went directly against the publicly stated principles of the Energy Commission to adopt open tender practices in order to promote competition in the industry.
The contracts awarded included a 2,400MW combined-cycle gas-turbine power plant in August 2014 and a 50MW solar farm in March 2014. In addition, 1MDB was also awarded a 2,000MW coal-fired power plant in February, after the lowest tariff bid by YTL Power was controversially disqualified on a technicality.
I had argued that the tariff wil be higher for Malaysians in the future because the Government will award 1MDB will more lucrative tariffs in order to create more profits for the distressed firm to pay of its RM42 billion of monstrous debt. Otherwise, why would the Government eschew the open tender process if 1MDB would offer the lowest possible tariff in the first place?
However, the situation is even worse than I have anticipated, because the Government has agreed to raise the tariff rates for 1MDB power plants even before their construction have even commence.
It was reported on Monday in The Edge Financial Daily that the Energy Commission has already approved an increase in tariff for the solar power plant from 41 sen per kWh to 50 sen per kWh. That represents a whopping 22% hike in electricity tariffs within a year after the project has been awarded via direct negotiations. The power supply will be sold to Tenaga Nasional, which will in turn transfer the cost burden to consumers.
As highlighted by my colleague, the Member of Parliament for Serdang, Dr Ong Kian Ming on Monday itself, the 50 sen tariff rate is higher the 49 sen recently awarded to smaller solar plants sized between 10MW to 30MW via competitive bidding. As he rightly pointed out, the substantially larger 50MW solar farm will naturally enjoy higher economies of scale to offer cheaper prices. In addition, with the rapidly plummeting global solar photovoltaic panel prices, tariffs should be declining over time, and not be increased by a whopping 22%.
Worse, The Financial Daily also reported that 1MDB is in the process of “disposing” its winning bid for the 2,000MW coal-fired power plant which it won via the controversial open tender. This is because the debt-laden and cash-stricken 1MDB has no money to fund the project. Furthermore no bank is willing to lend any more money to the company.
However, instead of cancelling the award due to breach of concession terms, the Energy Commission is allowing 1MDB to profit from the license award by on-selling its rights to Tenaga Nasional Bhd (TNB). To sweeten the deal for TNB to acquire the concession from 1MDB, it is understood that TNB will be allowed to renegotiate the tariff which was set earlier during the bid. Once again, it means higher profits for 1MDB for doing absolutely nothing other than to on-sell the concession, while the rakyat will have to pay for higher electricity rates to TNB.
If the Government is truly concerned with the interest of the ordinary man, then surely the right thing to do will be to cancel all of the above recently awarded power plant concessions to 1MDB, simply because the latter has failed to produce the necessary funds to commence on their construction. The power plants should instead be tendered out in an open and transparent fashion so that the most financial strong and experienced companies which bid at the lowest tariff rates should be awarded the contracts.
However, the Government chose to artificially improve the profitability of 1MDB in order to cover up the billions of ringgit of losses suffered by the company. The losers are Malaysians who are forced to bear higher electricity prices on top of the recently implemented Goods and Services Tax. The above proves that I am right many times over that the men-on-the-street are being robbed with higher electricity prices in order to bailout 1MDB.
Saturday, March 07, 2015
Dato' Seri Najib Razak's Defamation Suit
I will not be shackled by the defamation suit brought by the Dato’ Seri Najib Razak because I am supported by millions of Malaysians out there who demand good governance, transparency and accountability from the Prime Minister and his Government.
My lawyer, Gobind Singh who is also the Member of Parliament for Puchong, has received the writ served by Dato’ Seri Najib Razak’s lawyers at 4.30pm yesterday evening.
The suit by the Prime Minister accused me of having defamed him in my speech at a DAP Petaling Jaya Fund-Raising Dinner on 3 November 2014 where I spoke extensively on the “mother of the mother of the mother of all scandals”, 1Malaysia Development Bhd (1MDB).
My lawyer, Gobind Singh who is also the Member of Parliament for Puchong, has received the writ served by Dato’ Seri Najib Razak’s lawyers at 4.30pm yesterday evening.
The suit by the Prime Minister accused me of having defamed him in my speech at a DAP Petaling Jaya Fund-Raising Dinner on 3 November 2014 where I spoke extensively on the “mother of the mother of the mother of all scandals”, 1Malaysia Development Bhd (1MDB).
Tuesday, October 14, 2014
1MDB Energy Receives Yet Another Bail Out From The Government
The Government is pulling all stops to bail out 1MDB Energy after multiple Initial
Public Offering postponements with lucrative directly negotiated power contracts at
the expense of higher electricity tariffs in the future.
The Minister of Energy, Green Technology and Water has confirmed in his reply to me on
Thursday last week that the Government has awarded another power plant project via direct
negotiations to 1Malaysia Development Berhad (1MDB). This 2,000MW gas-turbine power
plant sited in Melaka was rumoured to have been awarded in late August this year.
Earlier in April, Tenaga Nasional Bhd (TNB) had signed another power purchase pact with
1MDB on the construction of a solar power plant. 1MDB will design, construct, own, operate and
maintain a 50MW solar photovoltaic energy facility in Kedah and supply electrical power to TNB.
Before that 1MDB was also controversially awarded an RM11 billion 2,000MW coal-fired power
plant in February despite offering a higher power tariff in an “open tender” exercise.
Public Offering postponements with lucrative directly negotiated power contracts at
the expense of higher electricity tariffs in the future.
The Minister of Energy, Green Technology and Water has confirmed in his reply to me on
Thursday last week that the Government has awarded another power plant project via direct
negotiations to 1Malaysia Development Berhad (1MDB). This 2,000MW gas-turbine power
plant sited in Melaka was rumoured to have been awarded in late August this year.
Earlier in April, Tenaga Nasional Bhd (TNB) had signed another power purchase pact with
1MDB on the construction of a solar power plant. 1MDB will design, construct, own, operate and
maintain a 50MW solar photovoltaic energy facility in Kedah and supply electrical power to TNB.
Before that 1MDB was also controversially awarded an RM11 billion 2,000MW coal-fired power
plant in February despite offering a higher power tariff in an “open tender” exercise.
Tuesday, April 15, 2014
Direct Award From Tenaga Nasional To 1MDB
The direct award by Tenaga Nasional Bhd to 1Malaysia Development Bhd (1MDB) of
a 50MW solar power plant proved a desperate attempt by the Najib administration
to bailout the heavily indebted sovereign wealth fund.
It is bad enough for the Malaysian power sector when the Ministry of Energy, Green
Technology and Water (KeTTHA) shifted goalposts with the qualifying criteria to award
1Malaysia Development Bhd with a 2,000MW coal-fired plant on 28th February despite offering
a higher power tariff in an “open tender” exercise.
Yesterday, Tenaga Nasional Bhd (TNB) said it had signed another power purchase pact with
1MDB on the construction a solar power plant. 1MDB will design, construct, own, operate and
maintain a 50 megawatts solar photovoltaic energy facility in Kedah and supply electrical power
to TNB over.
a 50MW solar power plant proved a desperate attempt by the Najib administration
to bailout the heavily indebted sovereign wealth fund.
It is bad enough for the Malaysian power sector when the Ministry of Energy, Green
Technology and Water (KeTTHA) shifted goalposts with the qualifying criteria to award
1Malaysia Development Bhd with a 2,000MW coal-fired plant on 28th February despite offering
a higher power tariff in an “open tender” exercise.
Yesterday, Tenaga Nasional Bhd (TNB) said it had signed another power purchase pact with
1MDB on the construction a solar power plant. 1MDB will design, construct, own, operate and
maintain a 50 megawatts solar photovoltaic energy facility in Kedah and supply electrical power
to TNB over.
Wednesday, March 05, 2014
Dato' Seri Najib's “Kangkung” Economic Model With 1MDB
Dato' Seri Najib Razak is practising “kangkung” economics by awarding lucrative
multi-billion contracts to qualified parties who are not the lowest bidders.
On 28th February, the Energy Commission (EC) confirmed weeks of alleged “baseless speculation”
that 1MDB will be awarded the new Independent Power Producer (IPP) 2,000MW coal-fired
power plant concession. The project is said to be worth RM11 billion.
multi-billion contracts to qualified parties who are not the lowest bidders.
On 28th February, the Energy Commission (EC) confirmed weeks of alleged “baseless speculation”
that 1MDB will be awarded the new Independent Power Producer (IPP) 2,000MW coal-fired
power plant concession. The project is said to be worth RM11 billion.
Monday, March 03, 2014
Project 3B Awarded To 1MDB: An Attempt To Prop Up 1MDB
The Energy Commission’s award of RM11 billion 2,000MW Coal-fired power plant
(“Project 3B”) to 1MDB confirms earlier speculations and the complete lack of
transparency and accountability.
The Ministry of Energy, Green Technology and Water (KeTTHA) openly attacked me on 20th
February that my comments regarding the tender for the 2,000 MW greenfield coal-fired plant or
Project 3B was “baseless and mere speculation”. I had earlier accused the Government of
intending to make the award to 1MDB despite it not submitting the lowest bid for the tender to
supply electricity to Tenaga Nasional (TNB).
However, exactly 8 days later on 28th February, KeTTHA confirmed my “baseless speculation” that
1MDB will be awarded the new Independent Power Producer (IPP) power plant concession.
(“Project 3B”) to 1MDB confirms earlier speculations and the complete lack of
transparency and accountability.
The Ministry of Energy, Green Technology and Water (KeTTHA) openly attacked me on 20th
February that my comments regarding the tender for the 2,000 MW greenfield coal-fired plant or
Project 3B was “baseless and mere speculation”. I had earlier accused the Government of
intending to make the award to 1MDB despite it not submitting the lowest bid for the tender to
supply electricity to Tenaga Nasional (TNB).
However, exactly 8 days later on 28th February, KeTTHA confirmed my “baseless speculation” that
1MDB will be awarded the new Independent Power Producer (IPP) power plant concession.
Tuesday, February 18, 2014
Energy Commission Awards Power Plant Project To 1MDB Instead Of Lowest Qualified Bidder
The Cabinet must prioritise the interest of the rakyat and not the profits of its
companies when deciding on the “winner” of the power plant projects.
It has been reported by The Edge Financial Daily over the past 2 weeks that the Energy
Commission has decided to award the latest 2,000MW coal-fired power plant to 1Malaysia
Development Bhd (1MDB).
The paper reported that “according to industry sources, the board of the Energy Commission (EC)
has decided to propose 1MDB as the preferred bidder for the RM11 billion plantingup exercise to
the Ministry of Energy, Green Technology and Water”.
This is despite the fact that the bid submitted by 1MDB at 25.65 sen per kWh is higher than that
submitted by another tenderer, YTL Power at 25.23 sen per kWh. The difference of 0.42 sen per
kWh is estimated to constitute a difference of RM2 billion over the 25 year concession period.
What is more disturbing is the fact that based on documents sighted by The Edge, “the EC’s
technical evaluation committee had recommended YTL Power as the preferred bidder for the
tender in December last year”.
companies when deciding on the “winner” of the power plant projects.
It has been reported by The Edge Financial Daily over the past 2 weeks that the Energy
Commission has decided to award the latest 2,000MW coal-fired power plant to 1Malaysia
Development Bhd (1MDB).
The paper reported that “according to industry sources, the board of the Energy Commission (EC)
has decided to propose 1MDB as the preferred bidder for the RM11 billion plantingup exercise to
the Ministry of Energy, Green Technology and Water”.
This is despite the fact that the bid submitted by 1MDB at 25.65 sen per kWh is higher than that
submitted by another tenderer, YTL Power at 25.23 sen per kWh. The difference of 0.42 sen per
kWh is estimated to constitute a difference of RM2 billion over the 25 year concession period.
What is more disturbing is the fact that based on documents sighted by The Edge, “the EC’s
technical evaluation committee had recommended YTL Power as the preferred bidder for the
tender in December last year”.
Wednesday, July 25, 2012
SEDA Financial Rules Breached?
* Note: Please refer to clarification statement below (13/11/13)
Sustainable Energy Development Authority (SEDA) spent tens of thousands of ringgit to publish a response to our queries over the suspicious awards of Feed-in Approval Holders for solar energy and yet failed to answer the key questions posed.
In a statement issued last Friday and advertorials taken in most mainstream newspapers on Sunday, the Sustainable Energy Development Authority (SEDA) said it “regrets the accusations and allegations by Nurul Izzah Anwar and Tony Pua and is of the view that such allegations are clearly unwarranted and unjustified.”
However, in defending its award of 32.4% of the solar energy quota to 12 companies owned by Suzi Suliana binti Mohd Sidek and her business partners, SEDA has raised further questions, including clear-cut non-compliance with its own application criteria and license requirements. [* this figure is erroneous, it should be 23.6%]
1. Failure to meet pre- and post-application financial requirements
SEDA argued that “companies that apply have no way of knowing whether they would succeed, so it would be unfair to expect them to make huge investments beforehand… Most of the companies that participate in the [Feed-in Tariff] programme formed a special purpose vehicle and some with RM2 paid-up capital because there is no guarantee they will get the quota."
The above statement comes as a complete shock as the application form which I have forwarded to all the press last week, very specifically states that the companies must have secured financing for the project. In fact, the form states that the Applicant’s bank account statement must show “a credit balance of at least 20% of the total capital cost of the renewable energy installation”.
Given that every megawatt of solar energy requires at least RM8 million in investment, Suzi Suliana’s companies secured 45.9MW of Feed-In Approvals (FiA) which will require investments of RM367 million. A 20% “credit balance” would require Suzi’s companies to show at least RM73 million in the company accounts. We challenge SEDA to state that Suzi’s companies have fulfilled the RM73 million cash balance requirements for the application by the 12 successful companies.
It was the further clarified by SEDA that “the successful applicant must have a minimum RM200,000 in paid-up capital or two percent of the project cost, whichever higher”. Otherwise SEDA said the failure to meet any requirement or milestone would result in a revocation of the FiA.
This is where SEDA’s explanations shot itself in the foot and raised more questions than answers. If the applicant must have a minimum of RM200,000 paid up capital after successfully receiving the FiA, why is it that the latest information from the Companies Commission (SSM) showed that at least 9 of the 12 successful companies had paid up capital of only RM100 more than 6 months after they were awarded?
2. Failure to ensure no monopolisation of FiA
SEDA had insisted that the deals were made in a “fair and transparent” manner as the company owned by Suzi and her husband was not the only one that had won more than one of the feed-in tariff (FiT) solar-power contracts.
The above represents a clear admission by SEDA in failing to protect “the need for fair competition and transparency in the implementation of the feed-in tariff system” as specified in the Renewable Energy Act.
The fact that other companies got away with multiple licenses does not in any way absolve SEDA of its award of 32.4% of the solar energy quota to 12 companies owned by Suzi Suliana and her business partners. [* this figure is erroneous, it should be 23.6%]
SEDA has obviously failed to avoid the “monopolisation of the Renewable Energy (RE) quota” as required by the Ministry of Energy, Green Technology and Water. The reason why a cap of 5MW was set for each company was to ensure as many companies as possible have the opportunity to participate in the above programme.
However, by allowing Suzi Suliana and her business partners to circumvent the rules by setting up more than a dozen shelf-companies to secure the FiA, SEDA has either proven itself negligent and incompetent, or worse acted in collusion with the applicants to monopolise the quota. This is despite its promise that “no preferential treatment will be given to any FiT application. All FiT applications will be treated fairly and equally through a transparent application process”.
Conclusion
The award has caused a lot of disquiet and unhappiness in the renewable energy industry with many player claiming foul play and favouritism the in award of the quota. Many who are keen on the FiA were not able to secure any license.
Based on the above clarifications by SEDA, it is now imperative that the award for the FiAH must be rescinded, and the solar energy quota redistributed to companies who truly qualified based on the financial commitment and technical criteria laid down both by the Renewable Energy Act 2011 as well as the existing SEDA guidelines.
We call upon Datuk Peter Chin to reprimand Tan Sri Fong Chan Onn, who is the Chairman of SEDA and his board of directors for failing to adhere to the high standards set out in the Act as well as comply with the Authority’s very own guidelines.
---
13 Nov 2013
I wish to clarify that:
In making and/or publishing the above, my statements therein were directed towards the implementation of Feed-in Tariff system implemented and administered by the Sustainable Energy Development Authority (“SEDA”);
My intention in making those statements was to question SEDA on issues relating to the Feed-in Tariff application and approval process.
While I had in my statements directed questions and comments against Suzi Suliana binti Mohd Sidek and her husband Todd Michael Morath (“Sun Energy Shareholders”) which may suggest that companies associated with them had obtained Feed-in Tariff approvals from SEDA by virtue of their relationship with Suzi Suliana binti Mohd Sidek’s father, Tan Sri Mohd Sidek bin Hassan (“Tan Sri Sidek”) and/or some form of undue or preference treatment, I now confirm as follows:
Contrary to what may have been suggested, I do not know of any evidence that suggests any foul play involving and/or any undue or preferential treatment to, and/or favouritism to the Sun Energy Shareholders and/or companies associated with the Sun Energy Shareholders by SEDA in the award of any Feed-in Tariff approvals whether by virtue of their relationship with Tan Sri Mohd Sidek bin Hassan or otherwise.
I also accept that I was mistaken and wrong in reporting that the Sun Energy Shareholders and business partners were awarded 32.4% of Feed-in Approvals of the total quota allocated to companies producing between 1MW to 5MW. In particular I recognize that:
(i) the persons mentioned by me as business partners of the Sun Energy Shareholders, namely Lim Boon Huay and Yap Kian Mun were merely incorporators of shelf companies and do not have any association or businesses with the Sun Energy Shareholders;
(ii) the Sun Energy Shareholders have no connection whatsoever with Semangat Sarjana Sdn Bhd, Kenari Pasifik Sdn Bhd Tiara Insight Sdn Bhd, Ambang Fiesta Sdn Bhd, Gaya Dunia Sdn Bhd and Rentak Raya Sdn Bhd; and
(iii) I did not state that the Sun Energy Shareholders’ ultimate and only business partner in respect of the Feed-in Approvals obtained was SunEdison, a global player in solar energy, which has significant experience and track record in solar power generation.
I did not contact the Sun Energy Shareholders, Tan Sri Mohd Sidek bin Hassan or Lim Boon Huay and Yap Kian Mun to verify or confirm my statements prior to or after making them.
I wish to repeat and re-emphasise that my statements were at all material times directed against SEDA on issues relating to the Feed-in Tariff application and approval process which I believe were made in the public interest in my capacity as a Member of Parliament, and clarify that I did not mean to disparage the character of or allege any wrong-doing by Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan.
For avoidance of doubt, I retract all insinuations of undue or preferential treatment, foul play and/or favouritism against Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan that may have been suggested in my statements.
In recognition of the above, I shall:
(i) qualify all my statements as published on the internet with reference to my clarifications herein which shall be appended as a note to the same; and
(ii) remove all comments made by visitors to my blog that concern Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan in relation to my statements.
Sustainable Energy Development Authority (SEDA) spent tens of thousands of ringgit to publish a response to our queries over the suspicious awards of Feed-in Approval Holders for solar energy and yet failed to answer the key questions posed.
In a statement issued last Friday and advertorials taken in most mainstream newspapers on Sunday, the Sustainable Energy Development Authority (SEDA) said it “regrets the accusations and allegations by Nurul Izzah Anwar and Tony Pua and is of the view that such allegations are clearly unwarranted and unjustified.”
However, in defending its award of 32.4% of the solar energy quota to 12 companies owned by Suzi Suliana binti Mohd Sidek and her business partners, SEDA has raised further questions, including clear-cut non-compliance with its own application criteria and license requirements. [* this figure is erroneous, it should be 23.6%]
1. Failure to meet pre- and post-application financial requirements
SEDA argued that “companies that apply have no way of knowing whether they would succeed, so it would be unfair to expect them to make huge investments beforehand… Most of the companies that participate in the [Feed-in Tariff] programme formed a special purpose vehicle and some with RM2 paid-up capital because there is no guarantee they will get the quota."
The above statement comes as a complete shock as the application form which I have forwarded to all the press last week, very specifically states that the companies must have secured financing for the project. In fact, the form states that the Applicant’s bank account statement must show “a credit balance of at least 20% of the total capital cost of the renewable energy installation”.
Given that every megawatt of solar energy requires at least RM8 million in investment, Suzi Suliana’s companies secured 45.9MW of Feed-In Approvals (FiA) which will require investments of RM367 million. A 20% “credit balance” would require Suzi’s companies to show at least RM73 million in the company accounts. We challenge SEDA to state that Suzi’s companies have fulfilled the RM73 million cash balance requirements for the application by the 12 successful companies.
It was the further clarified by SEDA that “the successful applicant must have a minimum RM200,000 in paid-up capital or two percent of the project cost, whichever higher”. Otherwise SEDA said the failure to meet any requirement or milestone would result in a revocation of the FiA.
This is where SEDA’s explanations shot itself in the foot and raised more questions than answers. If the applicant must have a minimum of RM200,000 paid up capital after successfully receiving the FiA, why is it that the latest information from the Companies Commission (SSM) showed that at least 9 of the 12 successful companies had paid up capital of only RM100 more than 6 months after they were awarded?
2. Failure to ensure no monopolisation of FiA
SEDA had insisted that the deals were made in a “fair and transparent” manner as the company owned by Suzi and her husband was not the only one that had won more than one of the feed-in tariff (FiT) solar-power contracts.
The above represents a clear admission by SEDA in failing to protect “the need for fair competition and transparency in the implementation of the feed-in tariff system” as specified in the Renewable Energy Act.
The fact that other companies got away with multiple licenses does not in any way absolve SEDA of its award of 32.4% of the solar energy quota to 12 companies owned by Suzi Suliana and her business partners. [* this figure is erroneous, it should be 23.6%]
SEDA has obviously failed to avoid the “monopolisation of the Renewable Energy (RE) quota” as required by the Ministry of Energy, Green Technology and Water. The reason why a cap of 5MW was set for each company was to ensure as many companies as possible have the opportunity to participate in the above programme.
However, by allowing Suzi Suliana and her business partners to circumvent the rules by setting up more than a dozen shelf-companies to secure the FiA, SEDA has either proven itself negligent and incompetent, or worse acted in collusion with the applicants to monopolise the quota. This is despite its promise that “no preferential treatment will be given to any FiT application. All FiT applications will be treated fairly and equally through a transparent application process”.
Conclusion
The award has caused a lot of disquiet and unhappiness in the renewable energy industry with many player claiming foul play and favouritism the in award of the quota. Many who are keen on the FiA were not able to secure any license.
Based on the above clarifications by SEDA, it is now imperative that the award for the FiAH must be rescinded, and the solar energy quota redistributed to companies who truly qualified based on the financial commitment and technical criteria laid down both by the Renewable Energy Act 2011 as well as the existing SEDA guidelines.
We call upon Datuk Peter Chin to reprimand Tan Sri Fong Chan Onn, who is the Chairman of SEDA and his board of directors for failing to adhere to the high standards set out in the Act as well as comply with the Authority’s very own guidelines.
---
13 Nov 2013
I wish to clarify that:
In making and/or publishing the above, my statements therein were directed towards the implementation of Feed-in Tariff system implemented and administered by the Sustainable Energy Development Authority (“SEDA”);
My intention in making those statements was to question SEDA on issues relating to the Feed-in Tariff application and approval process.
While I had in my statements directed questions and comments against Suzi Suliana binti Mohd Sidek and her husband Todd Michael Morath (“Sun Energy Shareholders”) which may suggest that companies associated with them had obtained Feed-in Tariff approvals from SEDA by virtue of their relationship with Suzi Suliana binti Mohd Sidek’s father, Tan Sri Mohd Sidek bin Hassan (“Tan Sri Sidek”) and/or some form of undue or preference treatment, I now confirm as follows:
Contrary to what may have been suggested, I do not know of any evidence that suggests any foul play involving and/or any undue or preferential treatment to, and/or favouritism to the Sun Energy Shareholders and/or companies associated with the Sun Energy Shareholders by SEDA in the award of any Feed-in Tariff approvals whether by virtue of their relationship with Tan Sri Mohd Sidek bin Hassan or otherwise.
I also accept that I was mistaken and wrong in reporting that the Sun Energy Shareholders and business partners were awarded 32.4% of Feed-in Approvals of the total quota allocated to companies producing between 1MW to 5MW. In particular I recognize that:
(i) the persons mentioned by me as business partners of the Sun Energy Shareholders, namely Lim Boon Huay and Yap Kian Mun were merely incorporators of shelf companies and do not have any association or businesses with the Sun Energy Shareholders;
(ii) the Sun Energy Shareholders have no connection whatsoever with Semangat Sarjana Sdn Bhd, Kenari Pasifik Sdn Bhd Tiara Insight Sdn Bhd, Ambang Fiesta Sdn Bhd, Gaya Dunia Sdn Bhd and Rentak Raya Sdn Bhd; and
(iii) I did not state that the Sun Energy Shareholders’ ultimate and only business partner in respect of the Feed-in Approvals obtained was SunEdison, a global player in solar energy, which has significant experience and track record in solar power generation.
I did not contact the Sun Energy Shareholders, Tan Sri Mohd Sidek bin Hassan or Lim Boon Huay and Yap Kian Mun to verify or confirm my statements prior to or after making them.
I wish to repeat and re-emphasise that my statements were at all material times directed against SEDA on issues relating to the Feed-in Tariff application and approval process which I believe were made in the public interest in my capacity as a Member of Parliament, and clarify that I did not mean to disparage the character of or allege any wrong-doing by Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan.
For avoidance of doubt, I retract all insinuations of undue or preferential treatment, foul play and/or favouritism against Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan that may have been suggested in my statements.
In recognition of the above, I shall:
(i) qualify all my statements as published on the internet with reference to my clarifications herein which shall be appended as a note to the same; and
(ii) remove all comments made by visitors to my blog that concern Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan in relation to my statements.
Friday, July 13, 2012
SEDA Fails to Explain Dubious Approval to Sidek's Daughter's Companies
* Note: Please refer to clarification statement below (13/11/13)
The explanation by Sustainable Energy Development Authority (SEDA) Chairman Tan Sri Fong Chan Onn that the selection process for Feed-in Approval Holders (FiAH) to supply solar energy is “above board” beyond belief and insults the intelligence of ordinary Malaysians
The Sustainable Energy Development Authority of Malaysia (SEDA Malaysia) is a statutory body formed under the Sustainable Energy Development Authority Act 2011. The key role of SEDA is to administer and manage the implementation of the feed-in tariff (FiT) mechanism which is mandated under the Renewable Energy Act 2011.
Under this mechanism, individuals and companies with factories and open land as well as companies in the renewable energy sector could apply to SEDA to become a Feed-in Approval Holder which then gives them the right to sell power generated from renewable energy sources to Tenaga Nasional Berhad.
In our press conference held on Tuesday, we have pointed out that 45.9MW or 32.4% of the allocation to supply solar power has gone to 12 companies owned by Suzi Suliana bt Mohd Sidek and her husband, Todd Michael Morath, as well as 2 business partners. [* this figure is erroneous, it should be 23.6%] Their ownership is hidden via a complex layer of holding companies and joint ventures. Their combined allocation is much larger than established companies of Cypark and Petronas Power which received 9.2% and 7.1% of the allocation respectively.
Suzi Suliana happens to be the daughter of Tan Sri Mohd Sidek Hassan, the recently retired Chief Secretary to the Government, and newly appointed chairman of Petronas Bhd.
The Star reported that SEDA Chairman Tan Sri Dr Fong Chan Onn had claimed that “the selection was above board as it was done through an online system”. More specifically, Tan Sri Dr Fong explained that “the companies had met all the necessary technical criteria as well as financial commitments”.
If the above is indeed the case, then SEDA under Tan Sri Dr Fong’s chairmanship must be extremely incompetent because all of the companies which were awarded the combined total of 45.9MW of solar generated electricity were set up only a few weeks before the 2 December 2011 application deadline. In fact, at least 8 out of the 12 of companies which was successful was set up only on 11 November 2011.
A random check on two companies – Synergy Must Sdn Bhd and Trinity Creations Sdn Bhd – showed that they had only RM100 in paid-up capital each.
How is it that these companies with no capital, no track record and in all likelihood no employees as at the point of time of application, met “all the necessary technical criteria as well as financial commitments”? Hence the only conclusion we can arrive at given Tan Sri Dr Fong’s reply, is that he is either completely blind, or is lying through his teeth.
What is scandalous is the fact that the quota for solar energy supply is much sought after by industry players due the more lucrative feed-in tariffs offered by the Government. In fact the demand far outstripped the available quota to the extent that the quota was fully taken up within 2 hours of the application being open.
The Renewable Energy Act 2011 had sought to protect “the need for fair competition and transparency in the implementation of the feed-in tariff system” while the Ministry of Energy, Green Technology and Water wants to “avoid any monopolisation of the Renewable Energy (RE) quota”.
And yet what we see is the complete opposite where companies set up by a kin of a top Government official being given the opportunity to secure the largest chunk of the lucrative solar energy supply quota.
We call upon SEDA to re-open the bidding process for the solar energy quota to ensure that all players are given fair treatment, while those who can’t possibly meet “all the necessary technical criteria as well as financial commitments” are knocked out from the qualification process
---
13 Nov 2013
I wish to clarify that: In making and/or publishing the above, my statements therein were directed towards the implementation of Feed-in Tariff system implemented and administered by the Sustainable Energy Development Authority (“SEDA”);
In making and/or publishing the above, my statements therein were directed towards the implementation of Feed-in Tariff system implemented and administered by the Sustainable Energy Development Authority (“SEDA”);
My intention in making those statements was to question SEDA on issues relating to the Feed-in Tariff application and approval process.
While I had in my statements directed questions and comments against Suzi Suliana binti Mohd Sidek and her husband Todd Michael Morath (“Sun Energy Shareholders”) which may suggest that companies associated with them had obtained Feed-in Tariff approvals from SEDA by virtue of their relationship with Suzi Suliana binti Mohd Sidek’s father, Tan Sri Mohd Sidek bin Hassan (“Tan Sri Sidek”) and/or some form of undue or preference treatment, I now confirm as follows:
Contrary to what may have been suggested, I do not know of any evidence that suggests any foul play involving and/or any undue or preferential treatment to, and/or favouritism to the Sun Energy Shareholders and/or companies associated with the Sun Energy Shareholders by SEDA in the award of any Feed-in Tariff approvals whether by virtue of their relationship with Tan Sri Mohd Sidek bin Hassan or otherwise.
I also accept that I was mistaken and wrong in reporting that the Sun Energy Shareholders and business partners were awarded 32.4% of Feed-in Approvals of the total quota allocated to companies producing between 1MW to 5MW. In particular I recognize that:
(i) the persons mentioned by me as business partners of the Sun Energy Shareholders, namely Lim Boon Huay and Yap Kian Mun were merely incorporators of shelf companies and do not have any association or businesses with the Sun Energy Shareholders;
(ii) the Sun Energy Shareholders have no connection whatsoever with Semangat Sarjana Sdn Bhd, Kenari Pasifik Sdn Bhd Tiara Insight Sdn Bhd, Ambang Fiesta Sdn Bhd, Gaya Dunia Sdn Bhd and Rentak Raya Sdn Bhd; and
(iii) I did not state that the Sun Energy Shareholders’ ultimate and only business partner in respect of the Feed-in Approvals obtained was SunEdison, a global player in solar energy, which has significant experience and track record in solar power generation.
I did not contact the Sun Energy Shareholders, Tan Sri Mohd Sidek bin Hassan or Lim Boon Huay and Yap Kian Mun to verify or confirm my statements prior to or after making them.
I wish to repeat and re-emphasise that my statements were at all material times directed against SEDA on issues relating to the Feed-in Tariff application and approval process which I believe were made in the public interest in my capacity as a Member of Parliament, and clarify that I did not mean to disparage the character of or allege any wrong-doing by Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan.
For avoidance of doubt, I retract all insinuations of undue or preferential treatment, foul play and/or favouritism against Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan that may have been suggested in my statements.
In recognition of the above, I shall:
(i) qualify all my statements as published on the internet with reference to my clarifications herein which shall be appended as a note to the same; and
(ii) remove all comments made by visitors to my blog that concern Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan in relation to my statements.
The explanation by Sustainable Energy Development Authority (SEDA) Chairman Tan Sri Fong Chan Onn that the selection process for Feed-in Approval Holders (FiAH) to supply solar energy is “above board” beyond belief and insults the intelligence of ordinary Malaysians
The Sustainable Energy Development Authority of Malaysia (SEDA Malaysia) is a statutory body formed under the Sustainable Energy Development Authority Act 2011. The key role of SEDA is to administer and manage the implementation of the feed-in tariff (FiT) mechanism which is mandated under the Renewable Energy Act 2011.
Under this mechanism, individuals and companies with factories and open land as well as companies in the renewable energy sector could apply to SEDA to become a Feed-in Approval Holder which then gives them the right to sell power generated from renewable energy sources to Tenaga Nasional Berhad.
In our press conference held on Tuesday, we have pointed out that 45.9MW or 32.4% of the allocation to supply solar power has gone to 12 companies owned by Suzi Suliana bt Mohd Sidek and her husband, Todd Michael Morath, as well as 2 business partners. [* this figure is erroneous, it should be 23.6%] Their ownership is hidden via a complex layer of holding companies and joint ventures. Their combined allocation is much larger than established companies of Cypark and Petronas Power which received 9.2% and 7.1% of the allocation respectively.
Suzi Suliana happens to be the daughter of Tan Sri Mohd Sidek Hassan, the recently retired Chief Secretary to the Government, and newly appointed chairman of Petronas Bhd.
The Star reported that SEDA Chairman Tan Sri Dr Fong Chan Onn had claimed that “the selection was above board as it was done through an online system”. More specifically, Tan Sri Dr Fong explained that “the companies had met all the necessary technical criteria as well as financial commitments”.
If the above is indeed the case, then SEDA under Tan Sri Dr Fong’s chairmanship must be extremely incompetent because all of the companies which were awarded the combined total of 45.9MW of solar generated electricity were set up only a few weeks before the 2 December 2011 application deadline. In fact, at least 8 out of the 12 of companies which was successful was set up only on 11 November 2011.
A random check on two companies – Synergy Must Sdn Bhd and Trinity Creations Sdn Bhd – showed that they had only RM100 in paid-up capital each.
How is it that these companies with no capital, no track record and in all likelihood no employees as at the point of time of application, met “all the necessary technical criteria as well as financial commitments”? Hence the only conclusion we can arrive at given Tan Sri Dr Fong’s reply, is that he is either completely blind, or is lying through his teeth.
What is scandalous is the fact that the quota for solar energy supply is much sought after by industry players due the more lucrative feed-in tariffs offered by the Government. In fact the demand far outstripped the available quota to the extent that the quota was fully taken up within 2 hours of the application being open.
The Renewable Energy Act 2011 had sought to protect “the need for fair competition and transparency in the implementation of the feed-in tariff system” while the Ministry of Energy, Green Technology and Water wants to “avoid any monopolisation of the Renewable Energy (RE) quota”.
And yet what we see is the complete opposite where companies set up by a kin of a top Government official being given the opportunity to secure the largest chunk of the lucrative solar energy supply quota.
We call upon SEDA to re-open the bidding process for the solar energy quota to ensure that all players are given fair treatment, while those who can’t possibly meet “all the necessary technical criteria as well as financial commitments” are knocked out from the qualification process
---
13 Nov 2013
I wish to clarify that: In making and/or publishing the above, my statements therein were directed towards the implementation of Feed-in Tariff system implemented and administered by the Sustainable Energy Development Authority (“SEDA”);
In making and/or publishing the above, my statements therein were directed towards the implementation of Feed-in Tariff system implemented and administered by the Sustainable Energy Development Authority (“SEDA”);
My intention in making those statements was to question SEDA on issues relating to the Feed-in Tariff application and approval process.
While I had in my statements directed questions and comments against Suzi Suliana binti Mohd Sidek and her husband Todd Michael Morath (“Sun Energy Shareholders”) which may suggest that companies associated with them had obtained Feed-in Tariff approvals from SEDA by virtue of their relationship with Suzi Suliana binti Mohd Sidek’s father, Tan Sri Mohd Sidek bin Hassan (“Tan Sri Sidek”) and/or some form of undue or preference treatment, I now confirm as follows:
Contrary to what may have been suggested, I do not know of any evidence that suggests any foul play involving and/or any undue or preferential treatment to, and/or favouritism to the Sun Energy Shareholders and/or companies associated with the Sun Energy Shareholders by SEDA in the award of any Feed-in Tariff approvals whether by virtue of their relationship with Tan Sri Mohd Sidek bin Hassan or otherwise.
I also accept that I was mistaken and wrong in reporting that the Sun Energy Shareholders and business partners were awarded 32.4% of Feed-in Approvals of the total quota allocated to companies producing between 1MW to 5MW. In particular I recognize that:
(i) the persons mentioned by me as business partners of the Sun Energy Shareholders, namely Lim Boon Huay and Yap Kian Mun were merely incorporators of shelf companies and do not have any association or businesses with the Sun Energy Shareholders;
(ii) the Sun Energy Shareholders have no connection whatsoever with Semangat Sarjana Sdn Bhd, Kenari Pasifik Sdn Bhd Tiara Insight Sdn Bhd, Ambang Fiesta Sdn Bhd, Gaya Dunia Sdn Bhd and Rentak Raya Sdn Bhd; and
(iii) I did not state that the Sun Energy Shareholders’ ultimate and only business partner in respect of the Feed-in Approvals obtained was SunEdison, a global player in solar energy, which has significant experience and track record in solar power generation.
I did not contact the Sun Energy Shareholders, Tan Sri Mohd Sidek bin Hassan or Lim Boon Huay and Yap Kian Mun to verify or confirm my statements prior to or after making them.
I wish to repeat and re-emphasise that my statements were at all material times directed against SEDA on issues relating to the Feed-in Tariff application and approval process which I believe were made in the public interest in my capacity as a Member of Parliament, and clarify that I did not mean to disparage the character of or allege any wrong-doing by Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan.
For avoidance of doubt, I retract all insinuations of undue or preferential treatment, foul play and/or favouritism against Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan that may have been suggested in my statements.
In recognition of the above, I shall:
(i) qualify all my statements as published on the internet with reference to my clarifications herein which shall be appended as a note to the same; and
(ii) remove all comments made by visitors to my blog that concern Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan in relation to my statements.
Tuesday, July 10, 2012
Tan Sri Sidek Hassan's Daughter Won Lion's Share of Solar Energy Quota
* Note: Please refer to clarification statement below (13/11/13)
The Sustainable Energy Development Authority of Malaysia (SEDA Malaysia) is a statutory body formed under the Sustainable Energy Development Authority Act 2011. The key role of SEDA is to administer and manage the implementation of the feed-in tariff (FiT) mechanism which is mandated under the Renewable Energy Act 2011. The authority comes under the purview of the Ministry of Energy, Green Technology and Water.
The FiT is to encourage and develop the use of renewable energy in the country and is funded by the public via the consumer through a 1% increase in electricity rates for those consuming more than 300kWh. Under this mechanism, individuals and companies with factories and open land as well as companies in the renewable energy sector could apply to SEDA to become a Feed-in Approval Holder which then gives them the right to sell power generated from renewable energy sources to Tenaga Nasional Berhad.
For solar power generated with photovoltaic, approximately 80% of the quota set is awarded to companies to each produce 1MW up to 5MW of electricity per 6 months. The rest are awarded to individuals and small companies producing less than 500kW. The limit to each company is set to protect “the need for fair competition and transparency in the implementation of the feed-in tariff system” as stated in the Act.
The Ministry of Energy, Green Technology and Water further adds that “in order to avoid any monopolisation of the Renewable Energy (RE) quota, SEDA Malaysia’s online system will track the RE installation/plant’s milestones via the submitted work plan”.
It also states that “no preferential treatment will be given to any FiT application. All FiT applications will be treated fairly and equally through a transparent application process”.
On the surface, no one particular company secured more than 10% of the quota allocation. Out of 32 companies awarded, the biggest recipients are Cypark Resources Bhd (9.2%) and Petronas Power Sdn Bhd (7.1%), and they are established players in the power industry.
However, upon closer scrutiny, 32.4% of the allocation has gone to 12 companies owned by Suzi Suliana bt Mohd Sidek and her husband, Todd Michael Morath, as well as 2 fellow shareholders*. Their ownership is hidden via a complex layer of holding companies and joint ventures.
Suzi Suliana who is also the daughter of Tan Sri Mohd Sidek Hassan, the recently retired Chief Secretary to the Government, and newly appointed chairman of Petronas Bhd.
Suzi Suliana (99.999%) and Todd Morath (0.001%) together owns 100% of Sun Energy Ventures Sdn Bhd, which then owns 98% of 3 companies – Hundred Tech Sdn Bhd, Indo Eagle Sdn Bhd and Sharp Crest Sdn Bhd, which holds 51% stakes in 9 companies which secured 32.6MW of the total quota allocated to companies given allocation between 1MW to 5MW.
According to SSM records, Suzi Suliana’s fellow shareholders of Diversified Harvest, Corporate Season and Silverstar Pavillion, Lim Boon Huay and Yap Kian Mun* then separately owns 100% of Semangat Sarjana Sdn Bhd, Kenari Pasik Sdn Bhd and Tiara Insight Sdn Bhd, which then owns 99.999% of 3 companies – Ambang Fiesta Sdn Bhd, Gaya Dunia Sdn Bhd and Rentak Raya Sdn Bhd – which secured 13.3MW of the solar power quota.
Together they control 45.9MW or 32.4% of the total quota allocated to companies producing 1MW to 5MW, much larger than established companies of Cypark and Petronas Power.
What is more shocking is the fact that all of these companies except for Sun Ventures (May 2010) and Uptown Sdn Bhd (September 2011), all the other companies involved were set up only in November 2011, or less than 1 month before applications for the permits were supposed to have been given out on the 2nd December 2011.
This only proves that none of these companies have any track record or experience with solar power generation, but they were still given the lion’s share of the lucrative solar power quota.
The award has also created a lot of disquiet and unhappiness in the renewable energy industry with many player claiming foul play and favouritism the in award of the quota. We call upon Tan Sri Fong Chan Onn, who is the Chairman of SEDA as well as Datuk Peter Chin, who is the Minister in-charge to explain the above award, which has raised doubts about the integrity and competency of the newly establish SEDA.
*Note: Lim Boon Huay and Yap Kian Mun has since sought to clarify that they are merely in the business of selling shelf company which were initially registered in their names, and are not related in anyway to the businesses set up by Suzi Suliana. As of today, their names remains as shareholders of the above named companies, and we'll update accordingly as and when the "real" shareholders of the companies - Semangat Sarjana Sdn Bhd, Kenari Pasik Sdn Bhd and Tiara Insight Sdn Bhd - surfaces.
-----
13 November 2013:
I wish to clarify that:
In making and/or publishing the above, my statements therein were directed towards the implementation of Feed-in Tariff system implemented and administered by the Sustainable Energy Development Authority (“SEDA”);
My intention in making those statements was to question SEDA on issues relating to the Feed-in Tariff application and approval process.
While I had in my statements directed questions and comments against Suzi Suliana binti Mohd Sidek and her husband Todd Michael Morath (“Sun Energy Shareholders”) which may suggest that companies associated with them had obtained Feed-in Tariff approvals from SEDA by virtue of their relationship with Suzi Suliana binti Mohd Sidek’s father, Tan Sri Mohd Sidek bin Hassan (“Tan Sri Sidek”) and/or some form of undue or preference treatment, I now confirm as follows:
Contrary to what may have been suggested, I do not know of any evidence that suggests any foul play involving and/or any undue or preferential treatment to, and/or favouritism to the Sun Energy Shareholders and/or companies associated with the Sun Energy Shareholders by SEDA in the award of any Feed-in Tariff approvals whether by virtue of their relationship with Tan Sri Mohd Sidek bin Hassan or otherwise.
I also accept that I was mistaken and wrong in reporting that the Sun Energy Shareholders and business partners were awarded 32.4% of Feed-in Approvals of the total quota allocated to companies producing between 1MW to 5MW. In particular I recognize that:
(i) the persons mentioned by me as business partners of the Sun Energy Shareholders, namely Lim Boon Huay and Yap Kian Mun were merely incorporators of shelf companies and do not have any association or businesses with the Sun Energy Shareholders;
(ii) the Sun Energy Shareholders have no connection whatsoever with Semangat Sarjana Sdn Bhd, Kenari Pasifik Sdn Bhd Tiara Insight Sdn Bhd, Ambang Fiesta Sdn Bhd, Gaya Dunia Sdn Bhd and Rentak Raya Sdn Bhd; and
(iii) I did not state that the Sun Energy Shareholders’ ultimate and only business partner in respect of the Feed-in Approvals obtained was SunEdison, a global player in solar energy, which has significant experience and track record in solar power generation.
I did not contact the Sun Energy Shareholders, Tan Sri Mohd Sidek bin Hassan or Lim Boon Huay and Yap Kian Mun to verify or confirm my statements prior to or after making them.
I wish to repeat and re-emphasise that my statements were at all material times directed against SEDA on issues relating to the Feed-in Tariff application and approval process which I believe were made in the public interest in my capacity as a Member of Parliament, and clarify that I did not mean to disparage the character of or allege any wrong-doing by Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan.
For avoidance of doubt, I retract all insinuations of undue or preferential treatment, foul play and/or favouritism against Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan that may have been suggested in my statements.
In recognition of the above, I shall:
(i) qualify all my statements as published on the internet with reference to my clarifications herein which shall be appended as a note to the same; and
(ii) remove all comments made by visitors to my blog that concern Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan in relation to my statements.
The Sustainable Energy Development Authority of Malaysia (SEDA Malaysia) is a statutory body formed under the Sustainable Energy Development Authority Act 2011. The key role of SEDA is to administer and manage the implementation of the feed-in tariff (FiT) mechanism which is mandated under the Renewable Energy Act 2011. The authority comes under the purview of the Ministry of Energy, Green Technology and Water.
The FiT is to encourage and develop the use of renewable energy in the country and is funded by the public via the consumer through a 1% increase in electricity rates for those consuming more than 300kWh. Under this mechanism, individuals and companies with factories and open land as well as companies in the renewable energy sector could apply to SEDA to become a Feed-in Approval Holder which then gives them the right to sell power generated from renewable energy sources to Tenaga Nasional Berhad.
For solar power generated with photovoltaic, approximately 80% of the quota set is awarded to companies to each produce 1MW up to 5MW of electricity per 6 months. The rest are awarded to individuals and small companies producing less than 500kW. The limit to each company is set to protect “the need for fair competition and transparency in the implementation of the feed-in tariff system” as stated in the Act.
The Ministry of Energy, Green Technology and Water further adds that “in order to avoid any monopolisation of the Renewable Energy (RE) quota, SEDA Malaysia’s online system will track the RE installation/plant’s milestones via the submitted work plan”.
It also states that “no preferential treatment will be given to any FiT application. All FiT applications will be treated fairly and equally through a transparent application process”.
On the surface, no one particular company secured more than 10% of the quota allocation. Out of 32 companies awarded, the biggest recipients are Cypark Resources Bhd (9.2%) and Petronas Power Sdn Bhd (7.1%), and they are established players in the power industry.
However, upon closer scrutiny, 32.4% of the allocation has gone to 12 companies owned by Suzi Suliana bt Mohd Sidek and her husband, Todd Michael Morath, as well as 2 fellow shareholders*. Their ownership is hidden via a complex layer of holding companies and joint ventures.
Suzi Suliana who is also the daughter of Tan Sri Mohd Sidek Hassan, the recently retired Chief Secretary to the Government, and newly appointed chairman of Petronas Bhd.
Suzi Suliana (99.999%) and Todd Morath (0.001%) together owns 100% of Sun Energy Ventures Sdn Bhd, which then owns 98% of 3 companies – Hundred Tech Sdn Bhd, Indo Eagle Sdn Bhd and Sharp Crest Sdn Bhd, which holds 51% stakes in 9 companies which secured 32.6MW of the total quota allocated to companies given allocation between 1MW to 5MW.
According to SSM records, Suzi Suliana’s fellow shareholders of Diversified Harvest, Corporate Season and Silverstar Pavillion, Lim Boon Huay and Yap Kian Mun* then separately owns 100% of Semangat Sarjana Sdn Bhd, Kenari Pasik Sdn Bhd and Tiara Insight Sdn Bhd, which then owns 99.999% of 3 companies – Ambang Fiesta Sdn Bhd, Gaya Dunia Sdn Bhd and Rentak Raya Sdn Bhd – which secured 13.3MW of the solar power quota.
Together they control 45.9MW or 32.4% of the total quota allocated to companies producing 1MW to 5MW, much larger than established companies of Cypark and Petronas Power.
What is more shocking is the fact that all of these companies except for Sun Ventures (May 2010) and Uptown Sdn Bhd (September 2011), all the other companies involved were set up only in November 2011, or less than 1 month before applications for the permits were supposed to have been given out on the 2nd December 2011.
This only proves that none of these companies have any track record or experience with solar power generation, but they were still given the lion’s share of the lucrative solar power quota.
The award has also created a lot of disquiet and unhappiness in the renewable energy industry with many player claiming foul play and favouritism the in award of the quota. We call upon Tan Sri Fong Chan Onn, who is the Chairman of SEDA as well as Datuk Peter Chin, who is the Minister in-charge to explain the above award, which has raised doubts about the integrity and competency of the newly establish SEDA.
*Note: Lim Boon Huay and Yap Kian Mun has since sought to clarify that they are merely in the business of selling shelf company which were initially registered in their names, and are not related in anyway to the businesses set up by Suzi Suliana. As of today, their names remains as shareholders of the above named companies, and we'll update accordingly as and when the "real" shareholders of the companies - Semangat Sarjana Sdn Bhd, Kenari Pasik Sdn Bhd and Tiara Insight Sdn Bhd - surfaces.
-----
13 November 2013:
I wish to clarify that:
In making and/or publishing the above, my statements therein were directed towards the implementation of Feed-in Tariff system implemented and administered by the Sustainable Energy Development Authority (“SEDA”);
My intention in making those statements was to question SEDA on issues relating to the Feed-in Tariff application and approval process.
While I had in my statements directed questions and comments against Suzi Suliana binti Mohd Sidek and her husband Todd Michael Morath (“Sun Energy Shareholders”) which may suggest that companies associated with them had obtained Feed-in Tariff approvals from SEDA by virtue of their relationship with Suzi Suliana binti Mohd Sidek’s father, Tan Sri Mohd Sidek bin Hassan (“Tan Sri Sidek”) and/or some form of undue or preference treatment, I now confirm as follows:
Contrary to what may have been suggested, I do not know of any evidence that suggests any foul play involving and/or any undue or preferential treatment to, and/or favouritism to the Sun Energy Shareholders and/or companies associated with the Sun Energy Shareholders by SEDA in the award of any Feed-in Tariff approvals whether by virtue of their relationship with Tan Sri Mohd Sidek bin Hassan or otherwise.
I also accept that I was mistaken and wrong in reporting that the Sun Energy Shareholders and business partners were awarded 32.4% of Feed-in Approvals of the total quota allocated to companies producing between 1MW to 5MW. In particular I recognize that:
(i) the persons mentioned by me as business partners of the Sun Energy Shareholders, namely Lim Boon Huay and Yap Kian Mun were merely incorporators of shelf companies and do not have any association or businesses with the Sun Energy Shareholders;
(ii) the Sun Energy Shareholders have no connection whatsoever with Semangat Sarjana Sdn Bhd, Kenari Pasifik Sdn Bhd Tiara Insight Sdn Bhd, Ambang Fiesta Sdn Bhd, Gaya Dunia Sdn Bhd and Rentak Raya Sdn Bhd; and
(iii) I did not state that the Sun Energy Shareholders’ ultimate and only business partner in respect of the Feed-in Approvals obtained was SunEdison, a global player in solar energy, which has significant experience and track record in solar power generation.
I did not contact the Sun Energy Shareholders, Tan Sri Mohd Sidek bin Hassan or Lim Boon Huay and Yap Kian Mun to verify or confirm my statements prior to or after making them.
I wish to repeat and re-emphasise that my statements were at all material times directed against SEDA on issues relating to the Feed-in Tariff application and approval process which I believe were made in the public interest in my capacity as a Member of Parliament, and clarify that I did not mean to disparage the character of or allege any wrong-doing by Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan.
For avoidance of doubt, I retract all insinuations of undue or preferential treatment, foul play and/or favouritism against Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan that may have been suggested in my statements.
In recognition of the above, I shall:
(i) qualify all my statements as published on the internet with reference to my clarifications herein which shall be appended as a note to the same; and
(ii) remove all comments made by visitors to my blog that concern Suzi Suliana binti Mohd Sidek, Todd Michael Morath and/or Tan Sri Mohd Sidek bin Hassan in relation to my statements.
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