Friday 12 Apr 2024
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YTL Power International Bhd’s decision to withdraw from the Project 4A power project after it was controversially awarded — without an open tender — to it and its consortium partners is the right one.

So, who is to blame for the fiasco? YTL? Its partner, Johor royalty-linked SIPP Energy Sdn Bhd?

We think not.

The responsibility for this farce rests solely with the Energy Commission (EC) and the Ministry of Energy, Green Technology and Water for breaking their own rule that all projects should be awarded on an open tender basis.

Corporations and businesses will do their best to get the best deals they can in the easiest way possible. So, the regulators and authorities have to ensure that things are done in an appropriate manner and rules are followed, not broken.

In this instance, there has been a clear failure of responsibility on the part of the EC and the ministry. We hope they will proceed with an open tender if Project 4A needs to go ahead.

This article first appeared in The Edge Malaysia Weekly, on June 23 - 29, 2014.

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