* 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
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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.
