Two articles basically tells of the inner workings of "the machinery". In Sabaruddin's case, its a bit hard to stomach since he was in the cabinet before, and now spilling the beans, and we are not sure if its because NOW his chairmanship of Bank Rakyat was not renewed. I place much more credence on Ani Arope's account, which if true, ... in any developed country would have seen an immediate Royal Commission (really independent ones) and many heads being rolled. Plus in my view Ani Arope is among the very few upstanding guys among GLC leaders past and present.
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From Selangor Kini:
Former CEO of TNB reveals 1992 ‘Blackout’ was the government’s plan to create IPPs
KUALA LUMPUR, 22 May: The ‘Blackout’ incident that happened across the country in 1992 was a plan aimed to create Independent Power Producers (IPP) in the country.
The former Chief Executive Officer of Tenaga Nasional Bhd (TNB), Tan Sri Ani Arope, revealed this in his 143-page book ‘Memoirs of Tan Sri Ani Arope’.
The book tells the beginning of IPPs.
The Economic Planning Unit (EPU), which was under the power of Dr Mahathir Mohamad at the time, forced TNB to hand over land in Paka, Terengganu and Pasir Gudang, Johor, to third parties to construct power plants.
“TNB had plans in place to pump out more energy by building plants in Pasir Gudang and Paka. Financing was no problem and our credit standing was very high. We had the land acquired and were ready to move in and plant up.
“But we were told by the Economic Planning Unit (EPU) that it had its own plans. We cautioned EPU that if those plants, which would take two years to complete, were not built, Malaysia would get another major blackout,” he said.
He said this in an interview with Starbiz recently about what actually happened in 1992, quoted by Keadilan Daily.
He said that when they have a place with 250 engineers, it does not make sense to say (the blackout) is because of poor planning.
Ani said that TNB produced energy at 8 sen per unit (kwh) and could deliver electricity at 17 sen per unit. After the event however, IPPs produced electricity at 23 sen per unit, causing TNB to charge the consumer at no less than 30 sen per unit.
He said that there was no negotiation and the agreement resulted in 20 million consumers in the years to have no choice but to pay higher electricity tariff.
“After that, my team was disappointed. The EPU just gave us the terms and asked us to agree. I said no way I would,” he said, and he was forced to resign shortly after the incident.
He thought that the agreement was morally wrong and unfair.
Based on the Petronas annual report in 2008, IPPs received gas subsidies amounting to RM8.1 billion, while TNB received RM5.7 billion.
This caused TNB shares to plummet from 20 sen in 1993 to 10 sen in 1994.
TNB raised the electricity tariff to maintain profitability.
The former Chief Executive Officer of Tenaga Nasional Bhd (TNB), Tan Sri Ani Arope, revealed this in his 143-page book ‘Memoirs of Tan Sri Ani Arope’.
The book tells the beginning of IPPs.
The Economic Planning Unit (EPU), which was under the power of Dr Mahathir Mohamad at the time, forced TNB to hand over land in Paka, Terengganu and Pasir Gudang, Johor, to third parties to construct power plants.
“TNB had plans in place to pump out more energy by building plants in Pasir Gudang and Paka. Financing was no problem and our credit standing was very high. We had the land acquired and were ready to move in and plant up.
“But we were told by the Economic Planning Unit (EPU) that it had its own plans. We cautioned EPU that if those plants, which would take two years to complete, were not built, Malaysia would get another major blackout,” he said.
He said this in an interview with Starbiz recently about what actually happened in 1992, quoted by Keadilan Daily.
He said that when they have a place with 250 engineers, it does not make sense to say (the blackout) is because of poor planning.
Ani said that TNB produced energy at 8 sen per unit (kwh) and could deliver electricity at 17 sen per unit. After the event however, IPPs produced electricity at 23 sen per unit, causing TNB to charge the consumer at no less than 30 sen per unit.
He said that there was no negotiation and the agreement resulted in 20 million consumers in the years to have no choice but to pay higher electricity tariff.
“After that, my team was disappointed. The EPU just gave us the terms and asked us to agree. I said no way I would,” he said, and he was forced to resign shortly after the incident.
He thought that the agreement was morally wrong and unfair.
Based on the Petronas annual report in 2008, IPPs received gas subsidies amounting to RM8.1 billion, while TNB received RM5.7 billion.
This caused TNB shares to plummet from 20 sen in 1993 to 10 sen in 1994.
TNB raised the electricity tariff to maintain profitability.
From Malaysian Insider:
Former Bank Rakyat chairman Tan Sri Sabbaruddin Chik has spilled the beans on cronyism and abuse of high office in Putrajaya by revealing that his tenure was not extended due to a RM40 million loan application made by a person linked to Putrajaya.
Sabbaruddin told The Malaysian Insider that the individual had used his political connections to settle a loan amounting to RM32 million without any interest calculated.
"The individual who owed the money should not be discussing it with a minister. His debt is with Bank Rakyat, why does he need to see a minister?"
"When the minister found out, he said 'I can sack all of you'," Sabbaruddin said, referring to Hasan.
Sabbaruddin told the Bank Rakyat board of directors to initially reject the compromise offered by the individual to settle his outstanding debt.
The individual had offered 120 post-dated cheques to be cashed in by the bank over a 10-year period.
"Ten years to pay off a debt without interest, that means the bank will be the big loser in the end," Sabbaruddin said.
According to Sabbaruddin, after the decision was made, Hasan was dissatisfied and refused to sign the letter extending his tenure as Bank Rakyat chairman.
"My term ended on April 8 and Bank Negara had agreed to extend my contract, but Hasan refused to sign it," Sabbaruddin said.
He also revealed that Hasan had a meeting with the individual without Bank Rakyat's knowledge in January.
"It was only after that we discovered that the two had met, as cheques for January, February and March had been prepared, waiting to be cashed."
The Malaysian Insider understands that the debtor is the owner of a carpet firm in the capital who has sparked controversy in the past.
Sabbaruddin also showed The Malaysian Insider a letter signed by Hasan instructing Bank Rakyat to proceed according to the terms of the compromise, clearly revealing the January meeting.
The incident reached boiling point when Bank Rakyat managing director Mustafa Razak was instructed to raise the issue before the board of directors. The board was instructed to agree with the method of repayment in March. Sabbaruddin also said a new chairman has yet to be appointed to Bank Rakyat since the termination of his contract.
Attempts by The Malaysian Insider to contact Hasan failed as he is currently abroad on a working trip.
The same debtor had sparked controversy on the eve of the 13th general election last year when he attempted to file a lawsuit against Putrajaya for violating the terms and conditions of a land deal in Bukit Raja, Selangor. However, the suit was withdrawn the same day.
Soon after, a company owned by the Lembaga Angkatan Tentera Malaysia (LTAT), Boustead Holdings Bhd, announced it was purchasing 80% of shares in the company owned by the debtor, Astacanggih Sdn Bhd.
Boustead Holdings Bhd also bought a piece of land worth RM130 million which was owned by Awan Megah Sdn Bhd, which is owned by Umno Selangor's Senator Datuk Raja Ropiaah Abdullah. – May 26, 2014.
http://malaysiafinance.blogspot.com/2014/05/the-land-of-no-repercussions-if-you-are.html
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Jonathan Keung
people ( well connected )or on the right track ( opps ! ) right doesn't means correct. will always seem somehow treated differently. we have in the past see how enforcement agencies have different set of rules for different people.
Ani Arope ( if i am not wrong ) was Ex Guthrie head honcho. this are the gentlemen of the past. our country needs more brave people of this kind ( without fear or favour) to speak out the inequality
2014-05-27 09:14