Statement by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjong, Lim Kit Siang

Koh Tsu Koon should explain why he had privately abandoned Penang's claim for ex gratia payment from Tenaga for the 10-day power blackout while publicly pretending that the claim is still being pursued actively

After the announcement by Tenaga Nasional that it would make an ex gratia payment for the 17-hour August 10 nationwide blackout tantamount to 10 per cent rebate for a month’s electricity bill - which would be paid out in two months - the Penang Chief Minister, Tan Sri Dr. Koh Tsu Koon asked that Tenaga Nasional give a similar rebate formula for those affected by the 10-day blackout in Penang in June last year.

This request was summarily dismissed by the new Tenaga Nasional Bhd executive chairman, Datuk Dr. Ahmad Tajuddin Ali, who said in Langkawi yesterday that he had met Dr. Koh last week and the Penang Chief Minister had told him that he was satisfied with the investments Tenaga had made in Penang to upgrade the power supply on the island as “ex gratia” for the 10-day power blackout last year. (Star 19.10.96, p.2)

Tajuddin said Tenaga was investing a total of RM1.7 billion in Penang until next year, including the setting up of a 110MW gas turbine generator in Glugor and the laying of additional submarine cables from the mainland to the island. Tajuddin said these investments are more beneficial in the long term to Penang consumers.

While Tenaga’s investments to upgrade the power supply system on the island are welcome, they are not an act of charity on the part of Tenaga, but in execution of Tenaga’s responsibility as the sole monopoly utility company supplying electricity to make sure that it could cope with the increasing power needs of Penang island and state.

Furthermore, Tenaga’s attempt to make up for its past failure to plan ahead to be able to keep abreast with the increasing power needs of Penang is a completely different issue from the enormous losses it had caused to Penang industry, business and users in the 10-day blackout in June last year.

Tenaga’s RM1.7 billion investments to upgrade the power supply system on the island cannot be used as an excuse to escape liability and responsibility for the losses suffered by Penang industry, business and users for the 10-day blackout, which had been estimated to be as high as RM1 billion.

Tajuddin’s revelation that Dr. Koh Tsu Koon had privately abandoned the Penang State Government and State Assembly claim for ex gratia payment in return for the RM1.7 billion Tenaga investments to upgrade the power supply system is most shocking.

The Penang Chief Minister should explain why he had privately abandoned Penang’s claim for ex gratia compensation for the 10-day power blackout last year when publicly he had pretended that the claim was still being pursued actively.

Furthermore, on what authority did the Penang Chief Minister abandon the Penang claim for ex gratia compensation from Tenaga?

I do not know whether Dr. Koh Tsu Koon had received the consent of the Penang State Exco to inform Tajuddin that the State Government had decided to abandon the claim for ex gratia payment in view of Tenaga’s investments to upgrade the power supply system on the island, and if so, he should give the date the State Exco took such a decision and why the people of Penang had not been informed.

The claim, howver, was also the subject of an unanimous Penang State Assembly motion and only the Penang State Assembly can abandon the claim by way of a new motion withdrawing the claim.

In failing to seek the consent of the Penang State Assembly before privately abandoning Penang’s claim for ex gratia compensation from Tenaga Nasional for the 10-day power blackout last year, the Penang Chief Minister has shown no respect to the Penang State Assembly altogether.

(19/10/96)