Chong: Cost of state govt’s acquisition of Bakun misleading
KUCHING: Bandar Kuching MP Chong Chieng Jen has labelled the state government’s claim that the acquisition price for the whole of Sarawak Hidro Sdn Bhd’s (SHSB) equity share is RM2.5 billion as ‘most misleading’.
“This figure is not the actual costs involved in the acquisition of ownership of the Bakun Dam. The actual costs of the acquisition should be RM8.6 billion and could even be more.
“As at Dec 31, 2015, the total liability of SHSB was RM6.15 billion. When the state government acquired the shares of SHSB, it also takes over the responsibility for the repayment of this RM6.15 billion debt.
“Based on the financial report, therefore, the total costs for the ownership of the Bakun Dam would be the purchase price of RM2.5 billion, the RM6.15 billion debt and the annual operating costs of the dam which, for 2015, was RM600 million,” he said in a press statement yesterday.
Chong, also state DAP chairman and Kota Sentosa assemblyman, said the net asset of SHSB was only RM1.526 billion based on its 2015 financial statement.
“Given that SHSB has only one customer which is Sarawak Energy Berhad ( SEB), it has no intangible asset such as business goodwill. Why is the state government using RM2.5 billion to purchase a company which only has a net asset of RM1.526 billion? What was the additional RM1 billion payment for?
“As ultimately the general public of Sarawak will be made to foot the bill for the costs of acquisition of Bakun Dam, Chief Minister Datuk Amar Abang Johari Tun Openg must provide detailed answers to the following three questions before the state government proceeds with the acquisition of SHSB.”
He added the price per KWH electricity sold to Syarikat Sesco Berhad is only RM0.067 sen per KWH, what would be the costs of generation of electricity per KWH (inclusive of the financial costs), if the state government were to take over SHSB?
He said after the state government acquired the equity in SHSB, all the financial costs, operation costs, maintenance costs and other
This figure is not the actual costs involved in the acquisition of ownership of the Bakun Dam. The actual costs of the acquisition should be RM8.6 billion and could even be more. As at Dec 31, 2015, the total liability of SHSB was RM6.15 billion. Chong Chieng Jen, Bandar Kuching MP
contingency costs would be factored into the costs of electricity of Sesco.
As such, he said the state government must tell all Sarawakians whether the costs per KWH of electricity would be lower or higher with the acquisition of SHSB.
“If it were higher, then there is no justification for the acquisition. If it were lower, how much is the costs reduction?
“Short of clear answers to all these questions prior to the acquisition of SHSB’s equity, the whole exercise will be seen as a bail- out by the state government of the federal government which is now short of fund to repay its debts,” said Chong.