http://dapmalaysia.org  

Datuk Dr Lim Keng Yaik Must Explain Why Tenaga Nasional Bhd's Estimated 2004 Return Of Investment To The Government Has Dropped 90% From Its Earlier Estimate Of RM 74.5 Million To Only RM 7.2 Million Press Statement by Lim Guan Eng (Petaling Jaya, Saturday): Energy, Water and Communications Minister Datuk Dr Lim Keng Yaik must explain why Tenaga Nasional Bhd's estimated 2004 return of investment to the government has dropped 90% from its earlier estimate of RM74.5 million to only RM 7.2 million. Giving a return of investment of only RM 7.2 million to the government is shockingly low when Tenaga is expected to make more than RM 1.1 billion net profit in 2004. The economic growth rate for 2003 is worse than 2004 and Tenaga still managed to record a net profit of RM 1.1 billion in 2003. According to the Ministry of Finance Report Of Estimates of Government's Revenue 2005, Tenaga had contributed only RM 38.9 million in 2003 in returns of investment when it earned RM 1.1 billion in 2003. For 2003, Petronas contributed RM 5.1 billion in return of investment to the government. Tenaga's contribution to the government of only RM 38.9 million is too low when the government owns up to 80% of Tenaga and Tenaga has the third largest capitalisation in the KLSE at RM 31.5 billion as at 30.8.2004. What is more unusual is that Tenaga was originally estimated to contribute returns of RM 74.5 million for 2004 before it was revised downwards by 90% to only RM 7.2 million. In contrast Petronas original return of investment to the government in 2004 of RM 5.6 billion was revised upwards by 68% to RM 9.1 billion. Datuk Dr Lim Keng Yaik must explain the reason for the downward revision of over 90%. It is just not acceptable that our country's supplier of electricity, owned up to 80% by the government with tens of billions of ringgit in assets gives a return to the government of only RM 7.2 million. Is there something wrong with Tenaga as revealed by the recent expose that 6 companies owes Tenaga more than RM 587 million for more than 13 months and yet electricity is not cut. On 11 September 2004, it was reported in the Malay Mail that CLSA Ltd, the Asian Investment banking arm of France's Credit Agricole SA, recommended investors buy shares in Tenaga Nasional Bhd and Telekom Malaysia Bhd saying "these organisation have been so badly run that any change will go to the bottom line." In other words, Tenaga and Telekom have been so badly run that things just can not get any more worse. Datuk Dr Lim should restore investors' confidence in Tenaga as well as fully explain to the people why they get back so little for so much invested. (18/9/2004) * Lim Guan Eng, DAP Secretary-General