The opaque and secretive manner in which the entire RM13.6 billion Bakun dam project had been approved and implemented, lacking the most elementary ingredients of accountability and transparency, has again been highlighted by the issue of the RM1 billion project management fees as main promoter for Bakun project.
At the signing ceremony between Bakun Hydro-Electric Corporation Bhd and ABB-CBPO Consortium for the construction of the Bakun dam project, the Prime Minister, Datuk Seri Dr. Mahathir Mohamed was asked by reporters about a statement by Ekran Bhd that it would receive RM1 billion for its past efforts and future role as project manager. Dr. Mahathir said: “I really don’t know if they are going to get RM1 billion as management fees. I think the consortium members are very hard-headed businessmen and will not be diddled into paying out what Ekran does not deserve.”
Last Monday, the Asian Wall Street Journal had reported “deep disagreements” between the shareholders of Bakun’s operating company over the share of potential profits from the hydropower project, that Tenaga Nasional Bhd and Malaysia Mining Corp. Bhd. - both minority shareholders in the operating company called Bakun Hydro-Electric Corp. Sdn. Bhd - had protested Ekran’s demand for project management fees of over one billion ringgit as the main promoter of the Bakun dam.
Ekran, which will hold a controlling stake in the operating concern, was reported to have taken the position that its claims to the RM1 billion project management fees were non-negotiable because the original award for Bakun was secured by the company.
The RM1 billion project management fees as main promoter for Bakun is clearly excessive which will finally be paid by the Malaysian consumers. It is really unthinkable that anyone should be able to get RM1 billion just for promoting the Bakun dam project.
If there is anyone who is responsible for promoting Bakun, it is none other than Dr. Mahathir himself, who was even present for the signing ceremony on the ABB construction contract for Bakun yesterday. For this reason, if there is to be a RM1 billion management fees as main promoter for Bakun, the payment should be made into the Treasury and not into Ekran.
Malaysians are entitled to be given the full facts about the dispute over the RM1 billion Bakun promotion fees - and what the government is doing to ensure that no one should be allowed to get away with RM1 billion at the people’s expense.
(3/10/96)