Media statement by Lim Guan Eng in Kuala Lumpur on Monday, 13^th June 2011: 

Malaysians have no faith that a BN Cabinet Committee to evaluate gas subsidies and TNB's Power Purchase Agreement with the independent power producers (IPPs) will side with the people when no action was taken on the RM 52 billion Bumi shares scandal 

Malaysians have no faith that a special BN Cabinet committee formed to evaluate gas subsidies and TNB's power purchase agreement with IPPs will side with the people when no action was previously taken on the RM52 billon bumi shares scandal. Only a Royal Commission of Inquiry or a bi-partisan committee comprising of both BN and PR elected representatives can instill public confidence that Malaysians will not lose out on renegotiating the IPPs as they have lost out when Tun Dr Mahathir Mohamad imposed these lopsided gas subsidies and unfair contracts in favour of IPPs.

The government had given out RM54 billion in bumi shares but only RM2 billion remained, the RM52 billion cashed out by the few UMNO and BN leaders for dishonest profit. If the RM52 billion of bumi shares were still retained, bumi corporate equity would now easily exceed 40%.

The same reason that BN refuses to act against those responsible for the RM52 billion bumi shares scandal is the same reason why Malaysians have no faith that BN will side with the people in negotiating with the IPPs. Those involved in the RM52 billion bumi shares scandal and the IPPs are all cronies of BN or enjoy the billion ringgit subsidies courtesy of political patronage.

For this reason Prime Minister Datuk Seri Najib Razak's assurances that his government will not look after the interests of IPPs but will side with the people, sounds hollow and unconvincing when the BN government refused to punish and force the perpetrators of the RM52 billion bumi shares scandal to cough out their ill-gotten gains and give back to the poor bumis and Malays.

That is why DAP supported the proposal by Gua Musang MP Tengku Razaleigh Hamzah to set up a Royal Commission of Inquiry(RCI) to review the IPP's agreements and gas subsidies in the interests of 27 million Malaysians. Why is it that Tengku Razaleigh Hamzah is the only BN MP who can see the adverse impact of subsidy cuts and rising power prices on the cost of living of ordinary Malaysians?

Are the other BN MPs so beholden to IPPs that they are willing to cut subsidies for the poor but not even touch the tens of billions of ringgit of gas subsidies enjoyed the IPPs, thus allowing billions of ringgit in annual profits? The RCI or bipartisan committee of both BN and PR leaders is crucial to ensure that there is no cover-up and a full disclosure of the power purchasing agreements between TNB and the various IPPs.

*Lim Guan Eng, Penang Chief Minister, DAP Secretary General & MP for Bagan