Why Did 1MDB Buy IPP?

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KUALA LUMPUR, July 11: The Federal Government should clarify why RM12 billion of public funds were used to buy Independent Power Producers (IPP) through 1Malaysia Development Berhad (1MDB).

This is in contrast with 1MDB’s goal to serve as a catalyst for new ideas and to drive long-term economic development in this country.

Taiping Parliamentarian, Nga Kor Ming questioned why the Federal Government wants to buy IPP despite knowing that some of the IPP companies are still under review and will terminate the concession agreement soon.

He explained that the decision is also suspicious because 1MDB does not have the experience, expertise and technology to handle the electric power plant in this country.

“Energy is the main source of economic and human development. No one can be casual in operating it,” he said during a press conference at the Parliament lobby today.

In the meantime, 1MDB allegedly bought Tanjong Energy Holdings Sdn Bhd, which is owned by tycoon Tan Sri Ananda Krishnan, for RM8.5 billion.

The most surprising this is 1MDB allegedly offered RM1.2 billion to buy Jimah Teknik and Jimah O&M that has negative reserves of RM367 million.

“This means that the amount of their (Jimah Teknik & Jimah O&M) liability is greater the total assets,” said Kor Ming.

1MDB also purchased Genting Sanyen for RM2.3 billion resulting in the company’s extraordinary profit of RM1.9 billion.

Until last year, Kor Ming claimed that 1MDB is one of the leading producers of energy in the country which is clearly different from its original inception to find sources for economic growth in Malaysia.

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