The allegation over the involvement of Tenaga Nasional Berhad to take over the coal mining plant 2,000 megawatt also known as Project 3B from 1Malaysia Development Berhad (1MDB) is testimony of the instability of the government-owned strategic investment company .

Former Batu Kawan UMNO vice-president, Datuk Seri Khairuddin Abu Hassan said the decision comes as no surprise as 1MDB is unable to cover up its own weaknesses, especially on the aspect of financial.

“I personally laud the takeover from TNB to ensure a continuous power supply for the future of Malaysia. This is important especially when TNB is the national’s power company. The question remains, however on where the fund had gone to and 1MDB’s financial status?

“In the past, 1MDB president, Arul Kanda Kandasamy issued a statement stating that 1MDB’s steady financial status but what is happening now is proof that the real issue and 1MDB’s debts are still left unanswered,” said Khairuddin.

Khairuddin was commenting a report published in daily stating that TNB had taken over the greenplant project from 1MDB as the project needed to get off the ground promptly. The report also highlighted, 1MDB and its business partner, Mitsui & Co Ltd was granted the RM11bil. through a controversial open project in February, beating TNB, Malakoff Corp Bhd and YTL Power International.

The report also cited a source stating that talks between TNB and Mitsui & Co Ltd to start the project had taken place.

It has also discussed with the engineers fromToshiba Corp, IHI Corp dan Hyundai Group, the companies which were granted the engineering project, Acquisition and Construction for the project.

TNB had reportedly allocated a whopping RM500mil. to kick start the project soon, especially after 1MBD’s debt woes had taken a few notches higher, to date, said the source.

Khairuddin also stressed that the rakyat wish to know 1MDB’s state of finance which had been allotted for the power plant project.

“We want to know what had happened to the 1MDB money and where the fund is now to execute the 3B Project.

“In this issue, the Energy, Green Technology and Water (KeTTHA) Ministry is guilty and an explanation on discussions approval for 1MDB to clinch the contract, is due.

“This means, KeTTHA along with Energy Commission of Malaysia are forced to use national fund as well as the rakyat’s money to save 1MDB,” he explained.

Khairuddin said that the Malaysia Anti-Corruption Commission (MACC) along with the Royal Malaysia Police should get involved in probing the cause of the direct negotiations that took place before the contract was awarded.

“There are so many companies with the expertise and good track record that were rejected. What are the guarantee that the TNB takeover will bore good profits and returns?

“The contract takeover was solely based on 1MBD terms. Financial auditing to win the contract by 1MDB was based on its cash flow,” said Khairuddin, adding that TNB should be transparent in providing comprehensive explanation towards the prospects of the takeover.

“TNB should give its assurance that the takeover won’t be a burden to the future of its financial status … it’s a case of once bitten, twice shy if the statement boast some truths.”