Minister of Energy, Green Technology and Water confirms that 1MDB had no role in reducing electricity tariffs or costs, proving PM’s claim of massive savings completely baseless.

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.