Controversial Johor power plant under scrutiny after royal flap, Yeoh crony remark

By admin-s On Jun 16, 2014

(TMI) – A controversial multi-billion ringgit Johor power plant deal is coming under close scrutiny as part of a backlash against tycoon Tan Sri Francis Yeoh’s (pic) now famous speech on cronyism and widespread concern over legislation that would have given the Sultan of Johor executive powers in the state, say sources.

Yeoh’s YTL Power International Bhd, the Johor ruler’s SIPP Energy Sdn Bhd and national electricity provider Tenaga Nasional Bhd have been awarded the Track 4A combined gas cycle project that could generate up to 1,400 megawatt (MW) of power under a controversial directly-negotiated deal.

There have been allegations of secretive meetings in London attended by officials from the consortium and a senior minister of the Najib administration. Also being openly talked about is the involvement of a family member of Prime Minister Datuk Seri Najib Razak in the promotion of the new IPP or independent power producer.

But it is only in recent days have the press started lifting the veil on the award of the project. At the same time, members of the Energy Commission have been on the defensive over the award of the Track 4A power plant through direct negotiation, instead of conducting an open tender.