Pua dares gov’t to declassify IPP contracts

Regina Lee | May 28, 11

The DAP has challenged the BN-led federal government to declassify the Independent Power Producer (IPP) agreements amidst the massive subsidy cutting exercise in the country.

The party’s publicity secretary and Petaling Jaya Utara MP Tony Pua said that this should be done to “justify the government’s refusal to restructure these wildly unfair contracts which allow them to make astronomical returns at the expense of the people”.

Earlier this week, MCA president Dr Chua Soi Lek had waved off opposition insistence that the government stop subsidising independent power plants (IPPs) and Tenaga Nasional Bhd before slashing those covering fuel and sugar.

He said that this cannot be done as the government had signed deals with various power producers many years ago and this can only be renegotiated after the contracts lapse.

“As the government is tied to lots of agreements, the subsidies for IPPs cannot be immediately abolished, (just because) DAP says or Anwar (Ibrahim) says,” he was reported to have said at a press conference.

To that, Pua said that there is little point in arguing with Chua on the Purchasing Power Agreements (PPA) that nobody outside the cabinet has access to.

“I’d instead challenge Chua to prove his point that the government is completely helpless after signing the PPAs by demanding that these agreements be declassified for public scrutiny,” said Pua in a statement this morning.

He also said that the government should follow the precedent set by the 2009 declassification of the highway toll concession agreements.

That move opened the opportunity for close scrutiny of the agreements by researchers as well as Pakatan Rakyat lawmakers.

“The declassification of the highway toll concession agreements also proved the lies of the former works minister Samy Vellu who had for years claimed that the government would have to pay hundreds of billions of ringgit in compensation should these contracts be terminated.

“He hid his arguments behind the Official Secrets Act (OSA) which prevents the public from finding out the real truth,” said Pua.

‘Chua, don’t be another Samy’

“It is only with the declassification of the PPAs from the OSA that Chua can prove that he is not another Samy Vellu who tried to protect the interest of the crony concessionaires while hiding behind the OSA.”

He also declared that they have no confidence that the BN has the political will to ‘negotiate’ with these IPPs to restructure the terms of their contracts as announced by Minister in the Prime Minister’s department Idris Jala.

“The BN government had talked about renegotiating these contracts for more than six years now with absolutely nothing to show,” Pua said.

Penang Chief Minister Lim Guan Eng had earlier claimed that the government dishes out RM19 billion in fuel subsidies to IPPs as well as government-owned Tenaga, gobbling up the majority of fuel subsidies given out by the government.

However, Energy, Green Technology and Water Minister Peter Chin Fah Kui denied the estimation, saying that the RM19 billion is instead the profit that Petroliam Nasional Bhd (Petronas) had to forgo for having to sell gas below the market price to the IPPs and Tenaga.

“If the Najib administration has the political will and is really sincere about renegotiating these contracts, it would not have taken him more than two years.

“It is only after being placed under pressure by the rakyat over the government’s attempts to cut subsidies for the man-on-the-street and not those for the large corporate cronies like the IPPs recently, that the recycled ‘renegotiation’ announcement was made,” said Pua.

  1. #1 by dagen on Sunday, 29 May 2011 - 10:54 am

    So because gobermen is tied to lots of agmt, it doesnt not mean the IPP agmts cannot be disclosed. Arguing it otherwise is stupid. Umno may as well say the govermen has to operate from putrajaya therefore it does not mean the umno gobermen must reveal those secrets. Or that jib was in the states recently and so the secrets must not be revealed. Or that in view of the Datuk T sex tape involving a man I believe to be tamby with an indon pros, the IPP agmts cannot now be revealed. Stupid arguments. Stupid umno logic. If it is important enough, the umno gobermen must reveal the IPP agmt. No two ways about it. And if it is necessary, all the other agmts too must be revealed. And the point is this. In view of the current price increases due to subsidies cut, the people (umno’s true and only master) wants umno to disclose those agmts. It has become necessary for umno to do so.

  2. #2 by shakarul on Sunday, 29 May 2011 - 11:18 am

    The main purpose of OSA is prevent the Rakyat from knowning how they loot the country’s coffer. Do you think they will declassify the IPP’s agreement? The only way is to boot them out in the coming GE13.

  3. #3 by k1980 on Sunday, 29 May 2011 - 11:27 am

    Russia shows the way— prison for former policemen, prosecutors, tax inspectors, customs agents and judges.

    I propose that whipping be added to the menu when similar prisons are set up here.


  4. #4 by Winston on Sunday, 29 May 2011 - 11:51 am

    Haven’t we been told frequently enough that the government has nothing to hide?
    Looks like they have plenty to hide!!
    In fact, every agreement that they signed is hidden.
    Behind the OSA.
    For over five decades!!!
    That’s how much they’ve been hiding.
    Time to boot them out and the new government to reveal what’s behind the veil.

  5. #5 by waterfrontcoolie on Monday, 30 May 2011 - 7:54 am

    This is the ONLY nation, claiming to practise democracy, to put national agreements which have direct impacts on the pockets of its citizens under a Secret Act. It is obvious from day one, those agreements were designed to enslave and cow its population. And now the parties who have benefitted from them are telling us that their interets is the same with the people’s.! We all know that such rethorics will continue so long they are THERE. Tony, they will not do it, least of all when GE is on the way; though we all support you making a stand on it. Amany of the IPPs’ contract were signed at 13 -17 cents per unit when the real cost of production was about 10 cents.; meaning they all had a guarantee margin of 30 to 70%! Who do you think would have a hand in the spoils?? Even the then Chair of TNB had to go!

  6. #6 by born in Malaya on Monday, 30 May 2011 - 10:03 am

    Ya, just like the highway owners, guaranteed profit business for UMNOs cronies, a business with guarantee profit is similar to corruption. Siphoning the rakyat’s wealth to their cronies, this is another UMNO’s speciality.

You must be logged in to post a comment.