SEB's top management should stop its witch-hunt on the leakage of the impropriety of the tender process for the 500 kV Backbone Transmission Project

The top management and CEO of Sarawak Energy Berhad (SEB) should stop its witch-hunting against those who have leaked the information to me on the impropriety of the conduct of the tender for the 500 kV Backbone Transmission Project. SEB should instead, take my expose as a lesson to learn and never to repeat such impropriety.

On 15-6-2012, I exposed the impropriety of the tender process of SEB in respect of its 500 kV Backbone Transmission Project which invoved building a 500 kV transmission line from Similajau to Tondong (505 km).

There were 3 main tenderers for the project and I highlighted 2 which are relevant to the controversy, namely Shanghai Electric Group Co. Ltd (Shanghai Electric) and Sinohydro Corporation JV Trenergy Infrastructure Sdn Bhd (Sino-Trenergy JV).

In my letter to SESCO, I pointed out that the tender price submitted by the two are as follows:

  1. Shanghai Electric --- RM1,017 million

  2. Sino-Trenergy JV --- RM1,151 million

I also pointed out that despite the fact that Shanghai Electric's tender price is RM134 million cheaper, SEB is still contemplating awarding the contract to Sino-Trenergy JV.

One interesting fact to note: Datuk Seri Mahmud Abu Berkir Taib, the son of the Sarawak Chief Minister is the shareholder of Trenergy Infrastructure Sdn Bhd holding 1,350,000 shares and that Sarawak Cable Berhad is bidding for the project through Trenergy (as confirmed by the CEO of Sarawak Cable in The Star on 12-6-2012) and shall purchase the entire shareholdings of Trenergy in due course.

A further point to note, SEB is also a shareholder of Sarawak Cable Berhad which is bidding for the 500 kV Backbone Transmission Project offered by SEB through Trenergy.

Since I submitted my letter to enquire with the CEO of SEB on the tender of the said 500 kV Backbone Transmission Project, the CEO has been keeping quiet and non-responsive to my query. This is not normal as on previous occasions, the CEO has been quick to respond to my letters to SEB. This time, there is total silence on this matter.

Till this day, SEB did not decide on the tender. It will be very embarrassing for SEB and its CEO, Tolstein Dale Sjotveit, to award the Project to Sino-Trenergy after the expose that Sino-Trenergy JV's tender price is RM134 million more expensive than that of Shanghai Electric.

However, internally, SEB's top management was going on a witch-hunting spree, terrorising its local engineers and employees looking for the ones who have leaked the information to me. This is typical of “Going after the Whistle-blower instead of the Wrong-doer” practice.

As a result, the acting director for the Project Execution Division, Chua Yaw Chiang, was demoted and transferred out from division. The reason given was that the division which he was in-charge has leaked information (the tender prices for the 500 kV Backbone Transmission Project).

Most unreasonably, the head of the division is not Chua Yaw Chiang, but an ex-patriate engineer by the name of Einar Kilde. Has SEB returned to the White Colony Era whereby the Whites have immunity from all blames and any wrongdoing, a local must take the blame? What is the relationship between the CEO of SEB, Tolstein Dale Sjotveit, and this Einar Kilde that the latter is so protected from blame?

I urge SEB, its Board and its CEO to stop the witch-hunting and adopt a more transparent and fairer process of tender for all SEB's projects. SEB is solely owned by the government of Sarawak and it is the sole electricity supplier in Sarawak, its fund and revenue comes from the people of Sarawak. As Sarawakians, we have a right to know exactly what in going on in SEB.

I also call upon SEB to stop the persecution on Chua Yaw Chiang. He is not the one supplying me with the information and he has done no wrong. He should not be made the scapegoat of SEB's impropriety.

Chong Chieng Jen DAP National Vice Chairman & MP for Bandar Kuching