1MDB: The people may have to pay higher electricity tariff rates

PETALING JAYA, 20 Nov: The people may face paying higher electricity charges in the next few years of the Federal Government awards 1Malaysia Development Berhad (1MDB) the contract to build and manage the power plants and sell electricity to pay off their debts.

The Member of Parliament for Petaling Jaya Utara (DAP), Tony Pua, explained that this is because 1MDB has to settle their loan of RM42 billion and they will transfer the burden of the debt to the people.

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“The risk to the economy is huge because it will have a domino effect of 1MDB defaults.

“That is why the government is rapidly trying to find money to help 1MDB pay off its debts,” he said during the 1MDB: A Country in Debt forum last night.

The PKR Vice-President, Rafizi Ramli, said that if 1MDB cannot pay their debts and if it falls, it could drag the economy down with them because the debt, which amounts to almost RM20 billion, is guaranteed by Putrajaya.

He said that this would mean that the central government must step in and pay 1MDB’s debts if the company fails to do so.

Rafizi said that part of the contract has higher electricity tariffs than normal, which will eventually be transferred to the consumer.

According to previous reports, 1MDB was awarded the coal power plant project worth RM11 billion at the beginning of this year in an open tender which became controversial.

NS

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