Call for probe into TNB's failed venture in Indonesia

A lawmaker Thursday demanded an investigation into the national energy company Tenaga Nasional Bhd's huge financial losses due to a failed coal-mining business in Indonesia, Bernama reported.

Member of Parliament for Jasin Datuk Mohd Said Yusof said the government should view seriously TNB's losses, estimated at more than RM300 million, because TNB is a government-linked company (GLC).

"The Public Accounts Committee should investigate it... the problem will soon become a liability to the government and the people," he told the Dewan Rakyat.

TNB's business deal with coal mine concession owner Robert Priantono Bonosusatya to extract coal in Indonesia's Kalimantan province had gone sour in recent months after Robert asked for higher royalty following a rise in the global coal price, from US$27 to US$50 per tonne.

According to Mohd Said, Priantono had written to TNB on May 27 asking it to move out its workers from the coal mining site.

He said the joint-venture company, PT Dasa Eka Jasatama (DEJ), also ceased supplying coal to TNB since April, forcing the energy company to import coal from Australia and South Africa.

"We do not want TNB to incur losses... otherwise they will come and ask the government to increase energy tariffs," he said during the debate on the Supply Bill.

He said TNB holds 99 per cent equity in DEJ but has no say in its management which is controlled by Priantono, who owns the remaining one per cent.

TNB invested US$10 million (RM36 million) in DEJ, he said, adding that it was also slapped with financial claims totalling US$77 million (RM227.2 million) for mining work done and the purchase of mining equipment.

The Dewan Rakyat will sit again on Monday.(*)