YTL International Power Bhd. should explain and clarify in full disclosure, based on principles of transparency and best business practices about its majority holding in the company called SIPP Power Sdn. Bhd. SIPP Energy Sdn. Bhd. received a letter from the Energy Commission (EC)very recently for the development of the new Pasir Gudang power plant.
SIPP Energy is the 30% shareholder in SIPP Power. Search in Suruhanjaya Syarikat Malaysia (SSM) shown that HRH Sultan Ibrahim Ibni Almarhum Sultan Iskandar, Sultan Johor is the majority (51%) shareholder of SIPP Energy.
Majority (3 out of 5) of SIPP Power Directors are siblings of YTL International Power Bhd. Managing Director Tan Sri Francis Yeoh and executives within the YTL Group.
Francis Yeoh currently is the market talk, where his “Capital Cronyism” statements recently which he said to about 200 participants of a forum organised by the Performance Management and Delivery Unit (PEMANDU) of the Prime Minister’s Department. It invited overwhelming negative reaction, considering that he contradicts his own company’s history and current business operations.
Probably he would like to also explain the proposed contract to produce power from this combined cycle power plant which is believed to be for 21 years, from the scheduled date of commercial operational which was reported to be in June 2018.
In would be interesting to know what is the formula and rate for the power produced by this plant, which would be undertaken by TNB Distribution. Considering this is direct negotiated deal, it is expected that bigger transparency would be demanded from the Malaysian public.
Of course, in the bigger scheme of things the relationship, role and structure of SIPP Power Sdn. Bhd. to the new Pasir Gudang combine cycle power plant aka Project 4A, since it is believed the EC letter was sent to SIPP Energy Sdn. Bhd. and was expected to reply within 14 days.
Again as we stated yesterday, a lot at stake in this.